Domestic Fuel

At some point in 2012, the final i’s will be dotted and t’s will be crossed so 15% ethanol can finally become the new consumer choice at the pump.

The final panel of the day at last week’s 6th Annual Iowa Renewable Fuels Summit focused on preparations that are being made to make sure retailers and consumers have all the information they need to make an informed choice when it comes to E15.

“A lot of what consumers know now is wrong,” said Ron Lamberty with the American Coalition for Ethanol (ACE).

Lamberty says while there are consumers who are opposed to the use of ethanol and are unlikely to change their minds, there is a good percentage of people who say they would use E15 if it were available. “When we do get E15 out to the marketplace, one of the things we have to make sure we tell people is that it’s out there and they can use it,” he said, noting that the main thing consumers need to know about E15 is that it is the most tested of fuel in history.

Another point that Lamberty believes is important for consumers to know is that the E15 approval for cars and light trucks newer than 2001 is not a mandate. “Approved for and not required,” Lamberty said. “No stations have to sell it and nobody has to buy it,” he said, although the industry believes that once consumers do try it they will want to use it.

As to when E15 will make it to the market, Lamberty says it is anyone’s guess, but he expects Iowa will be one of the very first places it will be available.

Listen to a Lamberty’s presentation at the summit here: Ron Lamberty at Iowa RFA Summit

Listen to an interview with Lamberty here: Ron Lamberty interview

Greg Emick of W&H Cooperative Oil Company spoke as a retailer that has adopted the use of blender pumps last year so they are already offering E15 as a choice in three different locations, along with other mid-level ethanol blends. “Our E15 sales were somewhat slow to increase but the E30 sales jumped right away,” he said. “I feel with promotion, advertising and pubic awareness about E15, it could become a larger percentage of sales at our retail facilities.”

Emick says their customers appreciate that they are promoting flexible fuels because of their environmental friendliness and competitive pricing, and he sincerely believes in the product and wants to see it continue to grow.

Listen to Greg Emick at the summit here: Greg Emick at Iowa RFA Summit

Photos from 2012 Iowa Renewable Fuels Summit

As Congress resumes work for 2012, the American Coalition for Ethanol (ACE) is urging its grassroots members and all ethanol supporters to attend the “Biofuels Beltway March” in Washington, DC. ACE’s fly-in for Capitol Hill visits will be held Tues., March 27 and Wed., March 28, headquartered at the Washington Court Hotel.

“Historic opponents to ethanol are again ramping up their misinformation game in an attempt to discredit the significant benefits seen as a result of the Renewable Fuels Standard (RFS) and it is imperative for our industry to proactively convey to Members of Congress that the RFS is successfully displacing foreign oil imports, creating American jobs, and reducing toxic pollution from gasoline,” said Brian Jennings, Executive Vice President of ACE.

Participants will break into teams for visits to Capitol Hill offices, meeting with Members of Congress or their staff about the RFS, ethanol infrastructure such as blender pumps and flex-fuel vehicles (FFVs), and educating Congress and federal agencies about the clean-octane benefits of ethanol. Sixty ethanol advocates met with more than 160 congressional offices during last year’s fly-in, and ACE is hoping for even greater attendance this year.

“Face-to-face meetings between constituents and lawmakers are the best way to make sure our consumer fuel choice message is heard,” said Jennings. “We encourage grassroots ethanol supporters to sign up for this fly-in and help explain that the RFS is accomplishing its purpose and will be the driver to help commercialize the next-generation of biofuels.”

Register with ACE for the event or get more information.

Officials from the South Dakota Governor’s Office of Economic Development (GOED) are hosting meetings across South Dakota this week to introduce the state’s new Ethanol Infrastructure Incentive Grant Program to petroleum retailers. The program was created to help station owners defray the cost of installation of ethanol blender pumps, which offer consumers a greater variety of fuel choices, including non-ethanol fuels and higher blends like E15, E30, and E85. Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota.

Representatives from the American Coalition for Ethanol (ACE) are helping educate participants about ethanol blends in the meetings as well.

“The Blend Your Own Ethanol campaign, which is a partnership between ACE and the Renewable Fuels Association, provides marketers across the country with information they need to help them decide whether they want to offer new, higher ethanol blends for their customers,” said Ron Lamberty, Senior Vice President, “and we see the South Dakota program as an example that we hope other states will emulate.”

ACE Director of Market Development Rick Serie says they are happy to be working with South Dakota on this effort.

“We are pleased that the state continues to lead the way in creating programs to encourage marketers to install more blender pumps. A program much like this one was a big success last year, and we are excited that South Dakota’s ethanol producers and the Governor’s Office of Economic Development are willing to continue to support and help implement a program like this that will have so many benefits for retailers and consumers in South Dakota,” Serie said.

The American Coalition for Ethanol (ACE) hosted a Farm Bill listening session with Senator Tim Johnson (D-SD) and area agricultural leaders last week at the ACE office in Sioux Falls.

“The farm bill plays a critical role in providing a safety net for America’s farmers and ranchers and has included important biofuel provisions in the past that we want to maintain,” said ACE Executive Vice President Brian Jennings.

In addition to Sen. Johnson and Jennings, participants who attended the event last Tuesday included Craig Schaunaman, USDA Farm Service Agency; Scott VanderWal, South Dakota Farm Bureau; Gary Duffy, South Dakota Corn Growers Association; Jeremy Freking, South Dakota Soybean Association; Kevin Kephart, South Dakota State University; Paul Brandt, South Dakota Pork Producers Council and Doug Sombke, South Dakota Farmers Union.

A short animated video just released by Pearson Fuels shows the benefits of biofuels for the United States.

Produced with the support of the American Coalition for Ethanol (ACE) and the Renewable Fuels Association (RFA), “Fuel Better in Sixty Seconds” is a short but sweet summary of why alternative energy is important for the nation and how it is making a difference. “With the election season ramping up and daily conversations occurring in the media around budget cuts and tax policy, it is important that the public be educated on a few facts about alternative fuels,” said Pearson Fuels co-founder Mike Lewis. “The bottom line is that alternative fuels, and biofuels in particular, displace a massive amount of foreign oil every day in this country. Once Americans understand the benefits of alternative fuel, they can demand the same from their government leaders.”

“Many Americans don’t realize the contributions that alternative fuels like ethanol make to the economy and our environment,” said RFA director of market development Robert White. “Pearson did a great job in getting the message across in an educational and entertaining way.”

California-based Pearson Fuels has been a leader in providing alternative fuels to both the public and government entities, opening the nation’s first Alternative Fuel Station in 2003. Located in the center of San Diego and specializing in bringing alternative fuels to the public, Pearson was the first facility of its kind and pioneered the first public E85 station on the West Coast.

Watch the video here.

A coalition of seven agricultural and biofuels organizations sent a letter this week to two members of Congress who have introduced legislation to modify the Renewable Fuels Standard (RFS2), warning that it is unnecessary and could lead to higher prices at the pump.

The organizations were reacting to a bill introduced by Representatives Bob Goodlatte (R-VA) and Jim Costa (D-CA) that would reduce or eliminate the volumes of renewable fuel use required by the Renewable Fuels Standard (RFS) based upon corn stocks-to-use ratios.

The groups point to a recent analysis by economists at the University of Wisconsin and Iowa State University that found growth in ethanol production reduced gasoline prices by an average of $0.25 per gallon, or 16 percent, over the entire decade of 2000-2010. “In 2010, for example, the authors found that the use of ethanol reduced wholesale gasoline prices by an average of $0.89 per gallon,” the letter stated, adding that the result of an immediate reduction in ethanol output “would be a dramatic increase in U.S. gasoline prices and the resulting increase in U.S. gasoline imports would also cause world gasoline prices to increase in the short run.”

Speaking to concerns over high corn prices, the groups wrote, “Numerous studies have concluded that the RFS is a minor contributor to corn prices. The most recent study, a July 2011 analysis commissioned by the International Centre for Trade and Sustainable Development, found that corn prices would have been exactly the same in 2009/10 if both the RFS and Volumetric Ethanol Excise Tax Credit (VEETC) had not existed.”

The groups are the American Coalition for Ethanol (ACE), the American Farm Bureau Federation (AFBF), Growth Energy, the National Corn Growers Association (NCGA), the National Farmers Union (NFU), the National Sorghum Producers, and the Renewable Fuels Association (RFA).

More analysis on the issue can be found on the RFA E-xchange Blog.

Last week during the Ethanol Conference in Des Moines, Iowa, the Iowa Renewable Fuels Association (IRFA) was given an award for its work on promoting ethanol. Their work continues this week as the association sent a letter to Texas Governor and presidential candidate Rick Perry, to oppose Congressional efforts to ban E15, a blend of 15 percent ethanol and 85 percent gasoline. Perry is traveling to Iowa to campaign.

In the letter, authored by IRFA President Walt Wendland, “IRFA members want to welcome your campaign for president to Iowa. We look forward to a thoughtful dialog on our Nation’s energy future. One pressing issue is an attack on consumer freedom and enhancing America’s energy security.

Recently Members of Congress from Texas and Oklahoma have introduced amendments to the FY2012 Interior, Environment, and Related Agencies Appropriations Bill that would essentially ban E15, a legal competitor to petroleum based gasoline. IRFA calls upon you to publicly oppose amendment #6 by Rep. John Sullivan (R-OK) and amendments #9 and #10 by Rep. Michael Burgess (R-OK).”

IRFA has noted that several other candidates have expressed support for E15 including Former Gov. Matt Romney, Rep. Michelle Bachmann, Rep. Ron Paul, businessman Herman Cain, former Speaker of the House, Newt Gingrich, and former Senator Rick Santorum.

EPA is currently in the process of finalizing regulations that will implement its E15 approval. To date, no other fuel blend has been tested more than E15.

U.S. Senator Harkin (D-IA) will be speaking at the 24th Annual Ethanol Conference hosted by the American Coalition for Ethanol (ACE). The event will be taking place on August 22-24 in Des Moines with Harkin presenting on Wednesday, August 24th.

“We are honored that Senator Harkin will be joining us for our 24th annual ethanol conference,” said Brian Jennings, Executive Vice President of ACE. “He has been a champion for ethanol in the Senate, particularly when it comes to consumer fuel choice with his legislation calling for the deployment of more Flexible Fuel Vehicles and blender pumps.”

Senator Harkin was elected to Congress in 1974. After serving ten years in the U.S. House of Representatives, he was elected to the Senate in 1984. He has been re-elected in 1990, 1996, 2002 and 2008. During his time in Congress, Harkin has been a strong supporter of ethanol in his capacity as a senior member and former Chairman of the Senate Committee on Agriculture, Nutrition and Forestry. Recently, the Senator introduced the Biofuels Market Expansion Act of 2011. The legislation mandates that a large majority of vehicles sold in the US be flex-fuel, requires major fuel distributors to install blender pumps and offers federal loan guarantees for ethanol pipelines.

“The ethanol industry is making history by challenging the decades-old dominance of petroleum-based fuels in our transportation systems,” said Harkin. “Supplying 10 percent of our gasoline demand is a huge accomplishment, but the byproduct of this success is critical market infrastructure needs. We need actions to enable ethanol and other biofuels to increase that to 20 percent, and then to 30 percent and beyond. Those levels of domestic biofuel supplies, coupled with increasing vehicle efficiencies, truly can eliminate our need for oil imports as well as the insecurities that come with those imports.”

For more information about the conference and to register visit ACE’s website.

Members of the American Coalition for Ethanol (ACE) are being urged to contact their congressional representatives during down time this month.

ACE Executive Vice President Brian Jennings says there are three key issues important to the ethanol industry that they are encouraging members to discuss with congressmen and senators during the August Recess. They include the offer by the ethanol industry “to sacrifice our tax credit for deficit reduction, next-generation biofuels, and incentives for small ethanol producers and infrastructure. Congress missed an opportunity to include this ethanol reform plan in the debt ceiling deal but should look for ways to advance this plan when they return to Washington, DC.”

In addition, Jennings says members should ask Congress to take a look at oil tax subsidies to reduce spending, and jobs legislation, with specific focus on clean energy jobs. “Provide your Members of Congress concrete examples of how ethanol has created jobs and benefited your community so they are armed with information they can use in trying to convince their colleagues in Congress to be more supportive of ethanol in the context of jobs legislation this fall,” said Jennings in a memo to members.

The deal to raise the U.S. debt ceiling and make spending cuts agreed upon by President Obama and congressional leaders includes no mention of the compromise to reform ethanol policy worked out last month in the Senate and ethanol industry leaders are disappointed.

“As this deal calls for a commission and a future budget framework, the possibility still exists for a more comprehensive dialogue about energy tax policy, including how to assure the continued evolution of the ethanol industry to new feedstocks and technologies, how to assure needed investments in vehicles and infrastructure to accommodate higher ethanol blends, and how to end the billions in subsidies and tax preferences still enjoyed by very mature and profitable petroleum fuels,” said Renewable Fuels Association president and CEO Bob Dinneen in a statement. “With the debt ceiling crisis looking as though it has been averted for now, we hope Congress and the Administration are now prepared to address the nation’s worsening energy crisis, as oil and gasoline prices continue to rise and the nation’s investment in home grown renewable fuels languishes.”

Brian Jennings, Executive Vice President of the American Coalition for Ethanol, calls it a missed opportunity. “By disregarding reform of the ethanol tax credit as part of this deal, consumers and the American biofuels industry have been shortchanged. It remains frustrating that some elected officials are continuing to protect billions in subsidies for the oil industry, while dismissing efforts to improve consumer choice at the pump.”

House of Representatives passed the compromise bill today by a vote of 269-161. The Senate is expected to pass the bill Tuesday and President Obama has said he will sign it.

Former South Dakota Representative Stephanie Herseth Sandlin will be a keynote speaker at the upcoming American Coalition for Ethanol (ACE) conference being held in Des Moines Iowa August 22-24 in the Marriott Hotel. Her speech, “Our Sons’ and Daughters’ Ethanol Industry: Adjusting to New Realities and Enlisting More Allies,” will be given at 12:15 pm CST on August 23rd.

“The former South Dakota Congresswoman is a perfect fit to speak at our conference,” said Brian Jennings, Executive Vice President of ACE. “From her service in Congress as a champion for biofuels to her experiences on her South Dakota family farm, Stephanie has a good perspective and advice on how our industry can build new and winning coalitions to ensure American biofuels are the consumer fuel of choice.

Herseth Sandlin served in Congress from 2004-2011. She currently works for the OFW law firm based in Washington, D.C. In addition to her presentation, other conference topics include exporting ethanol, the implementation of E15 fuels, how to make blender pumps a reality, the health and clean air benefits of using biofuels, and more. The full agenda and online registration is available here.

“I am excited for the opportunity to address the ACE Conference,” said Herseth Sandlin. “I view this as a great way to share experiences and ideas related to what the industry needs to do in Washington and across the country to develop new and supportive relationships. Strengthening the coalition of support for all biofuels is essential to maintaining public policy progress and capitalizing on new opportunities, especially in a world of budget pressures and challenges to economic growth.”

“I hope to continue working with ethanol advocates in a way that can help move this industry forward and sustain it for the next generation of investors, stakeholders and advocates,” concluded Herseth Sandlin.

The renewable energy and agricultural industry today sent a letter to all Members of the House of Representatives urging them to vote no against amendments that would harm the growth of the ethanol industry. The coalition says moves such as prohibiting the Environmental Protection Agency from implementing the E15 waiver would “weaken efforts to reduce our nation’s dependence on foreign oil and cost U.S. jobs.”

The letter was signed by the American Coalition for Ethanol, Advanced Ethanol Council, Growth Energy, National Corn Growers Association, National Farmers Union, National Sorghum Producers, and the Renewable Fuels Association. The letter addresses a number of “anti-ethanol” amendments including one proposed by Reps. John Sullivan (R-OK), Gary Peters (D-MI), and Michael Burgess (R-TX) that would block the legal implementation of E15. The fuel blend of 15 percent ethanol and 75 percent gasoline (E15) is the most tested fuel ever.

Ironically, calls to cut biofuel support come at a time of high debt crisis for the country. Needless to say, the same legislators who oppose biofuels are those who continue to support status quo tax credits and subsidies given to industries like oil, natural gas and coal. And one way to bring revenue to the federal government, an idea Republicans vehemently oppose, would be to close tax loop holes, some of which are helping the these same industries. Yet the biofuels industry is in a position to not only help save consumers money at the pump, but also to infuse money back into local, regional, state, and federal budgets.

As our elected officials continue to bicker on the Hill over the budget, now is a good time to urge them to make some sound policy decisions such as keeping continued support for biofuels a federal priority.

The full text of the letter is below:
Read the rest of this post…

A deal has been reached in the Senate that would eliminate the ethanol blenders tax credit but still provide incentives for infrastructure development.

U.S. Senators John Thune (R-S.D.) and Amy Klobuchar (D-Minn.) announced the agreement “that allows for a transition to a more sustainable model of incentives for domestic renewable fuel production while reducing the nation’s deficit by $1.3 billion.” The agreement, based on Thune and Klobuchar’s bipartisan Ethanol Reform and Deficit Reduction Act, would end the existing 45 cent per gallon Volumetric Ethanol Excise Tax Credit at the end of this month, five months earlier than its current expiration date of December 31, 2011. According to the announcement from Sen. Thune’s office, “The bipartisan agreement would dedicate two-thirds of the savings from existing money—$1.3 billion—to debt reduction and the remaining $668 million in savings to renewable fuel incentives, helping provide consumers with lower gas prices.”

Renewable Fuels Association (RFA) Chairman Chuck Woodside, CEO of farmer-owned KAAPA Ethanol in Nebraska says the compromise is not perfect, but the industry is willing to do its part to help the budget deficit. “While it is clear this agreement does not encompass everything proposed by Senators Klobuchar and Thune in their bill (the Ethanol Tax Reform and Deficit Reduction Act), their tireless effort to find a path forward is a testament to their commitment to American ethanol production and is greatly appreciated by advocates of renewable fuels,” Woodside said in a statement from RFA.

Something the ethanol industry would like to still see addressed is limitations placed on the cellulosic biofuel incentives, which American Coalition for Ethanol Executive Vice President Brian Jennings says needs “to be fixed in order to meaningfully help spur the commercialization of these promising fuels.” The agreement includes a modification and extension of the existing $1.01 per gallon tax credit for cellulosic biofuels through 2015 that would otherwise expire on December 31, 2012. It would be changed from a yearly credit to a gallon-based, capped credit, according to Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC), something that “adds artificial and unnecessary layers of uncertainty and risk for the financing community.”

National Corn Growers Association President Bart Schott says the “compromise reflects both the importance of the ethanol industry to achieve energy independence and the need for fiscal responsibility” but they would still like to see a more level playing field for energy policy. “Unlike the oil and gas industries, ethanol has been proactively working to reform tax policy affecting the industry and secure a safety net while reducing the overall cost to the federal government,” said Schott.

Sens. Thune and Klobuchar say that the agreement is consistent with recent votes in the Senate that have sought to end the current Volumetric Ethanol Excise Tax Credit while still continuing to fund blender pumps. The compromise can now be considered by the full Senate.

The same amendment to end the ethanol blenders tax credit (VEETC) that failed in the Senate on Tuesday passed today on a vote of 73 to 27. The only difference between the two amendments is that Sen. Dianne Feinstein (D-CA) took the lead on it instead of Republican Tom Coburn of Oklahoma who broke procedure to bring it to the floor last week.

The Renewable Fuels Association calls the vote “disappointing, ultimately inconsequential” since the underlying economic development bill to which this amendment is attached is “unlikely to make it to the president’s desk.” American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings added that the votes are “symbolic and will not become law.” Both organizations note that just last month, the Senate voted to protect tax subsidies for the oil industry.

The Senate is now voting on an amendment by Sen. John McCain that would eliminate federal funding for blender pump infrastructure.

There is funding available for gas retailers to install ethanol blender pumps, the trick is navigating the application process to get it.

That’s where Blend Your Own (BYO) Ethanol can help. The joint effort by the American Coalition for Ethanol (ACE) and the Renewable Fuels Association (RFA) is playing a key role in helping expedite the USDA REAP (Rural Energy for American Program) application process to install more ethanol blender pumps across the country.

RFA Director of Market Development, Robert White says BYO Ethanol has worked hand in hand with the USDA on the application process for 61 new blender pumps to be installed. “BYO has helped guide a number of retailers through the lengthy application process. We worked with states from Hawaii to Pennsylvania and helped walked retailers through the business advantages of blender pumps and the application process. We feel our efforts in helping answer questions and concerns from retailers will go a long way towards helping the USDA achieve the blender pump goals in participating states,” White said.

The USDA announced the REAP fund program for blender pumps this spring. The program’s goal is get 10,000 blender pumps installed across the country in the next five years. The program is a part of the REAP program, which is an effort designed to help spur rural development.

Retailers can find out more about the program at BYOEthanol.com.