Domestic Fuel

The Senate Agriculture Committee voted 15-5 today to approve the Agriculture Reform, Food and Jobs Act of 2013, which includes cuts to reduce the deficit by $23 billion dollars but still offers a commitment to renewable energy.

The bill includes an energy title that helps to advance “bio-energy production, supporting advanced biomass energy production such as cellulosic ethanol and pellets from woody biomass for power.”

The bill also provides support for blender pumps and higher ethanol blends, which was welcomed by the ethanol industry. “The American Coalition for Ethanol (ACE) thanks Chairwoman Stabenow and members of the Senate Agriculture Committee for adopting a Farm Bill which provides $800 million in mandatory funding for critical Energy Title initiatives, particularly $241 million in mandatory funding for the Rural Energy for America Program (REAP),” said ACE Executive Vice President Brian Jennings. “REAP provides vital cost-share assistance to help petroleum marketers make upgrades or install new equipment at retail stations, ensuring consumers have access to renewable and affordable fuels such as ethanol. Today’s action highlights strong bipartisan support for market access to E15 and midlevel blends, such as E30 or E85. We encourage the U.S. Senate to take action soon to enact the Farm Bill.”

The bill is expected to move to the Senate floor next week.

Looks like the discussions are going to kick off right at the upcoming International Fuel Ethanol Workshop & Expo (FEW), June 10-13, 2013, in St. Louis, Mo. One of the first sessions will be the Association Roundtable: Mid-Year U.S. Ethanol Policy Update, featuring moderator Tom Bryan, President, BBI International; Bob Dinneen, President & CEO, Renewable Fuels Association; Tom Buis, CEO, Growth Energy; and Brian Jennings, Executive Vice President, American Coalition for Ethanol, set for Tuesday, June 11 at 9 am:

Join the top executive officers of the Renewable Fuels Association, Growth Energy and the American Coalition for Ethanol for a vital summer policy update on safeguarding RFS2, correcting misinformation about RINs, building the market for E15 and mid-level blends and maintaining our national commitment to commercializing advanced and cellulosic ethanol.

Still plenty of time to make your reservation for the event. Click here for more information.

The American Coalition for Ethanol (ACE) along with Michael Best & Friedrich LLP (Michael Best) are hosting a webinar series focused on pressing legal issues facing ethanol producers. The first webinar focused on compliance issues with federal Health Care Reform in 2013. The 30 minute webinar, says ACE Executive Vice President Brian Jennings, will be a valuable resource for the ethanol industry.

“With so many demands on our members’ time, we are pleased to team up with ACE member Michael Best to sponsor this series of webinars providing ethanol producers with useful and timely updates on important legal issues,” said Jennings.

Porter J. Martin, Michael Best partner, describes the webinar series as an approachable way to communicate information every ethanol producer needs in the most efficient way. “The webinars are based on our experience representing ethanol producers and other industry clients. The goal is to provide participants with a basic understanding of potential legal challenges they may face in their business and prepare them to make educated decisions in the future,” said Martin.

Future webinar topics include, long-term compliance with health care reform (2014 and beyond), intellectual property concerns, OSHA inspections, State and EPA enforcement activities, negotiating air permits, employee wage and hour matters, and others. You can access the first webinar here.

The message being delivered to Washington, D.C. today is that Big Oil attacks on the Renewable Fuel Standard (RFS), so-called blend wall and E15 are bogus. Today representatives from the Iowa Renewable Fuels Association (IRFA), the American Coalition for Ethanol (ACE) and the Auto channel held a briefing in the Capitol Visitors Center to discuss these issues as well as highlight how E15 and the RFS are key parts of an “all of the above” American energy solution.

“Exposing the so-called blend wall for what it is—a Big Oil bluff—highlights how important E15 and the RFS are to achieving a more secure energy future for America,” said IRFA Executive Director Monte Shaw to the crowd. “Big Oil uses scare tactics like the so-called blend wall and bogus E15 studies to protect the petroleum monopoly at the expense of the American consumer. Meanwhile, renewable fuels benefit the American consumer by lowering gas prices, creating American jobs, and decreasing our dependence on foreign oil.”

Fuel retailer and owner of Midway Service in Sioux Falls, S.D. Bruce Vollan said to the ethanol advocates, “We have been offering blends of ethanol from zero to E85 at our station for nearly five years, and year after year, my customers buy an average of 20 to 25 percent ethanol. Despite what the so-called ‘experts’ say, we haven’t had to pay a single repair bill during that time. I think we’ve shown that – given the choice – customers are smart enough to know what works in their engines, and – given the choice – they will buy more ethanol. Being able to offer my customers all of the different fuels they want is just one of the reasons I’ve been an independent retailer for nearly ten years. I couldn’t sell these blends if my station was branded.”

When discussing Big Oil’s efforts to smear E15, ACE Senior Vice President Ron Lamberty explained, “Ethanol’s opponents have dramatically misrepresented the findings of studies about E15. We want to make sure that Congress is looking at the actual science and not just Big Oil’s distorted representations of that science.”

Auto Channel Executive Vice President Marc Rauch added, “For 180 years, the world’s top scientists and automotive engineers have known that ethanol is the best and safest engine fuel. It’s time to put this great domestic resource to serious use, and that means embracing E15 today. I’d much rather have my fuel money go to American farmers than to foreign terrorists.”

The House Energy and Commerce Committee on the Renewable Fuel Standard (RFS) recently released a second white paper, “Agricultural Sector Impacts,” in an effort to make decisions on the future of the RFS. Comments were due today and in response, Brian Jennings, Executive Vice President for the American Coalition for Ethanol (ACE) notes that the RFS is a catalyst for agricultural innovation worldwide.

Regarding the RFS and U.S. agriculture: “The RFS provides an economic incentive for scientists and technology firms to help farmers sustainably produce significantly more bushels of corn on an acre of existing cropland. Since the RFS was enacted in 2005, these advancements, such as new seed varieties and more sustainable tillage practices, have enabled U.S. farmers to produce, on average, nearly 20 additional bushels of corn per acre than before.  Still more innovations, like drought-tolerant genes, are being developed to improve corn yield further.  The 2012 drought-ravaged corn crop was twice as large as the drought-ravaged crop of 1988 and three-times larger than the U.S. corn crop 50 years ago.  None of this progress would have been possible without the RFS.”

Regarding the RFS and global agriculture: “From 2000 to 2011, a timeframe which includes when the idea for the RFS was developed by ACE, when it was enacted by Congress, and implemented by EPA, world corn production rose 12 billion bushels as 43 nations, mostly in Africa and the former Soviet Republic, doubled their production of corn. Repealing the RFS would simply discourage farmers around the world from planting corn, which runs contrary to what the meat and livestock groups supporting repeal want.”

Regarding the RFS and food prices: “Despite the hysteria created by oil companies who oppose the RFS because it enables renewable fuel to compete for market share with petroleum, and food manufacturers who oppose the RFS because they feel entitled to cheap corn forever, the facts indicate virtually no correlation between the RFS or prices farmers receive for corn and retail food prices.  When we pay $1 for groceries, about 14 cents goes to the farmer. About 35 cents of that dollar pays for the energy to make, transport, process, and preserve the food we buy. When oil prices rise, so do food prices. If policymakers genuinely want to reduce food prices, they should support the RFS because it replaces petroleum with renewable fuel.”

“Special interests who profited handsomely in the past from corn prices that averaged $2 per bushel and who are today heavily lobbying the Congress to repeal the RFS, profited on the backs of American taxpayers who were paying for multi-billion dollar commodity support programs under previous farm bills,” added Jennings. “With global oil demand on the rise and global oil prices at a new equilibrium, it is highly unlikely those special interests who feel entitled to cheap corn forever will get their wish.”

Yesterday Rep. Jim Sensenbrenner introduced legislation that would stall the roll-out of E15. Many in the renewable fuels industry responded to the proposed legislation including Fuels America who noted that the legislation ignores the long track record of successful, rigorous testing that E15 has undergone. “What the bill is clearly geared toward, however, is promoting the interest of oil compaines looking to retain control over America’s fuel option.”

“E15 is the most tested renewable fuel in history and to suggest otherwise ignores a wealth of facts. In multiple tests, E15 has been put through the paces in more than 6 million miles of testing. The results of these tests were so satisfactory that E15 is used in NASCAR vehicles – high-performance racecars that can top 200 miles an hour – have opted to use E15, continued the Fuels America statement.

“The reality is that E15 provides options to Americans and the choice to power their cars with clean and renewable fuel. Unfortunately, Rep. Sensenbrenner’s legislation would limit that choice by favoring the oil industry over hardworking American families and businesses.”

The American Coalition for Ethanol (ACE) who recently had a team of more than 70 ethanol supporters meeting with Congressman in DC, noted that the legislation would require another 18 months of E15 testing at taxpayers expense. Senior Vice President Ron Lamberty called the bill “A transparent attempt to protect Big Oil’s profitable monopoly by taking away a driver’s right to choose which fuel to use in his or her own car.”

“Congressman Sensenbrenner is basing his opposition of E15 primarily on two studies that clearly selected vehicles and components based on their history of performing poorly regardless of the type of fuel that was in them,” said Lamberty. “All Mr. Sensenbrenner is proving is that he either doesn’t know what the studies actually say or he does know, and is misrepresenting the findings. Neither should be acceptable to those who serve with him on the House Science and Technology Committee. In the event the bill passes out of committee, we would hope Congress would recognize this bill for what it actually is and not pass it.”

Lamberty continued, “Jim Sensenbrenner has a well-known history of refusing to accept science that doesn’t agree with his personal opinions. And after repeatedly saying two years of E15 testing by EPA and DoE testing was a “rush to judgment,” does anyone think he’ll accept a smaller, shorter test from the National Academy of Sciences when it says E15 is safe? No, this isn’t about science, it’s about delaying to protect BP and Exxon-Mobil.”

“Congressman Sensenbrenner loves to talk about “individual choice and free-market competition” when he talks about health care, and “defending the freedom and individual responsibilities” of motorcycle riders to not wear helmets, but he doesn’t trust people to make their own choice at the gas pump? Ridiculous,” added Lamberty.

A coalition of biofuel producer organizations the reconsideration of the 2011 cellulosic obligation under the Renewable Fuel Standard (RFS).

In January 2013, the U.S. Court of Appeals for the D.C. Circuit ordered the Environmental Protection Agency (EPA) to reconsider the 2012 Renewable Fuel Standard obligation for cellulosic biofuels. EPA has implemented the Court’s order and is now voluntarily reconsidering the 2011 obligation for cellulosic biofuels, which is the subject of a separate lawsuit before the Court.

In a joint statement, organizations that make up the Biofuel Producers Coordinating Council, noted that the “RFS was established to open the U.S. transportation fuel market to renewable fuels, and it ensures that the market remains open as cellulosic biofuel production starts up. The program has worked. Advanced biofuel companies across the United States have invested in technology development and construction of first-of-a-kind commercial scale refineries for cellulosic and other advanced biofuels. EPA’s implementation of the Court order does not impact the industry’s progress in developing technologies that reduce dependence on foreign oil and contribute to a cleaner environment.

The industry remains focused on starting up production this year and increasing it in years to come. We look forward to working with EPA to establish 2013 targets that are consistent with expected production volumes this year from the facilities that have already been built.”

Intervenors in the case included the Advanced Biofuels Association (ABFA), Advanced Ethanol Council (AEC), American Coalition for Ethanol (ACE), Biotechnology Industry Organization (BIO), Growth Energy, and Renewable Fuels Association (RFA).

Federal money to help offset the costs of putting in ethanol blender pumps is being made available. The Renewable Fuels Association (RFA) announced the USDA is now accepting applications for federal Rural Energy For America Program (REAP) funds to help gasoline retailers install blender pumps, the third year that blender pumps have been authorized as part of the REAP program and part of the USDA’s plan to have 10,000 blender pumps installed over the next five years.

“This program provided funding for hundreds of blender pumps the past two years, providing many consumers with the choice and flexibility they deserve to pick the ethanol blends that work for them based on their vehicle, their beliefs, and their budget,” said RFA Director of Market Development Robert White.

“We can continue to break the stranglehold oil has over our nation’s economy and energy future by giving consumers more options at the pump,” said ACE Senior Vice President Ron Lamberty. “The USDA’s announcement together with the efforts of the [Blend Your Own (BYO)] ethanol campaign will go a long way toward making that happen.”

The RFA and ACE are offering free grant writing services to those interested in applying. Applications for the grant program are due on April 30, 2013.

Just a few seats left for the Nebraska Ethanol Board’s Ethanol 2013: Emerging Issues Forum! The April 18-19 event in Omaha, Nebraska at the Magnolia Hotel will include several key speakers, including Ron Lamberty with the American Coalition for Ethanol, Greg Krissek from ICM and Sandra Dunphy with Weaver, LLP. Weaver specializes in EPA compliance and fuels consulting for the petroleum industry and will talk about Renewable Identification Numbers (RIN) management and compliance strategies:

This annual forum has become the “must-attend” event of the year for ethanol industry leaders and advocates. The forum is designed to promote interaction between speakers and attendees- and to provide insight and leadership on emerging issues in the ethanol industry and every level.

The lineup of speakers will talk about innovative ethanol marketing and promotion programs, distillers grains marketing, a financial outlook for the ethanol industry and environmental issues.

Register here.

There’s been a lot of talk about the prices for Renewable Identification Numbers … better known as RINs … especially from Big Oil trying to blame RINs for the rise in gasoline prices.

But in this edition of the Domestic Fuel Cast, Ron Lamberty, Senior Vice President with the American Coalition for Ethanol (ACE) and Brian Jennings, Executive Vice President for ACE, explain what RINs are and what they do … as well as dispelling some of the myths that have created what they call RIN-sanity.

You can listen to the Domestic Fuel Cast here: Domestic Fuel Cast - Countering RIN-sanity

You can also subscribe to the DomesticFuel Cast here.

View the ACE Biofuels Beltway March 2013 Photo Album.

The American Coalition for Ethanol (ACE) has created an ‘infographic’ promoting the benefits of the Renewable Fuel Standard (RFS). Entitled “An American Success Story,” the new infographic pinpoints how the RFS is accomplishing the goals set by Congress.

“ACE’s infographic is a vivid and effective ‘show and tell’ tool for ethanol advocates to use in proactively promoting the benefits of the RFS,” said Brian Jennings, ACE Executive Vice President. “The RFS costs taxpayers nothing and has spurred technology innovations, efficient feedstock and biofuel production, increased feed availability, and jobs that can’t be outsourced. I encourage all ethanol supporters to use this infographic, share it with their politicians and media members, and help us show how the RFS delivers benefits for everyone.”

The infographic cites data from the U.S. Energy Information Administration and other reliable third parties and shows key ethanol accomplishments since the RFS was enacted, including consumer savings at the pump, helping to reduce oil imports and replacing the need for 462 million barrels of imported oil, how U.S. ethanol production compares to the amount of gasoline that could be produced from the Bakken Oil Shale development or from the proposed Keystone XL Pipeline project, how much pollution is reduced by ethanol, and how E15 fuel is the most tested motor fuel on the market today.

The infographic was also part of the tools used during ACE’s Biofuels Beltway March, which received a good reception.

Learn more about why the RFs is so important and more about the Biofuels Beltway March in my interview with Brian Jennings: An American Success Story

View the ACE Biofuels Beltway March 2013 Photo Album.

What’s the real deal with E15? Do we hate it? Do we love it? Well Big Oil certainly has not shown an affinity for the ethanol fuel blend. But why?

According to Ron Lamberty, Senior Vice President for American Coalition for Ethanol (ACE), American Petroleum Institute (API) began its campaign against E15 as part of its attempt to get rid of the Renewable Fuel Standard (RFS2). One of the things API has done, explains Lamberty, is hyped a study by CRC that found E15 could be harmful to your vehicle. Yet what hasn’t gotten out, he says, is that when CRC submitted the request for proposal, they sought out vehicles that would be particularly sensitive to higher blends of ethanol.

When you dig into the study, says Lamberty, you discover that CRC tested cars that already had issues such as leaky values, engine leaks and all kinds of trouble lights. So of course, he says, the cars would be sensitive to all blends of ethanol. Yet interestingly, the data also shows that the cars had the SAME trouble when using 100 percent gasoline.

So how is this a valid study? It’s not.

Get a great breakdown of the study in my  interview with Ron Lamberty: What's the Real Deal with E15?

View the ACE Biofuels Beltway March 2013 Photo Album.

Big Oil lobbed another attack today against the biofuels industry. Brian Jennings, executive vice president of the American Coalition for Ethanol (ACE) responded by saying the Renewable Fuel Standard (RFS) is not about the oil industry’s comfort; it is about providing cleaner American-made alternatives to consumers.

“The RFS costs taxpayers nothing and is doing exactly what Congress intended; saving consumers money at the pump and providing them access to new affordable blends such as E15. The RFS is also disrupting the lucrative choke-hold oil companies have on the market. As a result, Big Oil is desperate to repeal the RFS this year.”

Jennings continued, “With respect to Renewable Identification Numbers (RINs), every time a refiner blends a gallon of ethanol with gasoline, they get a RIN for free. When they purchase more ethanol than the annual RFS obligation, RINs are a reward and provide value to them. The fact there are 2.5 billion excess RINs available for use in 2013 is proof that over-compliance has been commonplace with oil companies. Refiners only have to buy RINs if they refuse to follow the law, and that’s what this is about – they have had more than six years to evolve and comply with the law, but have refused to adapt and change.”

“Most refiners are trying to keep an oversupply of RINs on hand, to be sure that they are able to control the marketplace. The current Big Oil hue and cry isn’t about ethanol supply; it is fear of actual competition,” concluded Jennings.

Did you know that the oldest, continuous tax subsidy for oil companies was enacted by Congress in 1913, making 2013 the 100th year of federal tax subsidies specific to the oil industry? Shouldn’t this event garner a party? The Iowa Renewable Fuels Association (IRFA) and the American Coalition for Ethanol (ACE) thought so and on March 14, 2013 held a “Century of Subsidies” birthday party for big oil in Washington, DC. On hand for the event were Rick Schwarck, president of the IRFA and CEO of Absolute Energy, Monte Shaw, executive director for IRFA and Brian Jennings, executive vice president of ACE.

Schwark noted that they are not saying all the tax subsidies are necessarily bad and should be discontinued, but rather, that oil has had 100 years of an unfair advantage over all other fuels, including ethanol, and when discussing policies such as the Renewable Fuel Standard (RFS), the debate should be a full, fair and factual discussion that looks at how to level the playing field.

Today, here are the current oil specific tax subsidies: Expensing of Intangible Drilling Costs; Percentage Depletion Allowance; Deduction for Tertiary Injectants; Geological and Geophysical Expenditures; Exception for passive loss limitations for oil and gas; Enhanced oil recovery credit; and Marginal oil well credit.

To counterbalance the “Century of Subsidies” and other policies that favor petroleum, ACE and IRFA called upon Congress to protect the federal Renewable Fuels Standard (RFS). The RFS cracks open the petroleum monopoly to give consumers non-petroleum choices at the pump. Consumers benefit from market access to lower cost renewable fuels like E15 and E85.

“If oil companies cannot stand on their own two feet after 100 years of clinging to certain taxpayer subsidies, Congress shouldn’t hurt American consumers by repealing the RFS, a policy that helps level the playing field with oil a little bit by giving people affordable and renewable fuel choices,” said ACE Executive Vice President Brian Jennings. “ACE members met with Congress during our fly-in this week to emphasize how the RFS costs taxpayers nothing and has succeeded in delivering benefits for all Americans.”

View the ACE Biofuels Beltway March 2013 Photo Album.

The Iowa Renewable Fuels Association (IRFA) and the American Coalition for Ethanol (ACE) along with a full house, celebrated a “Century of Subsidies” for Big Oil today with a miniature version of the Capitol cake and ice cream. The cake was created by Charm City Cakes especially for the event that highlighted the fact that oil industry has received certain subsidies since 1913 – 100 years.

“Today’s ‘Century of Subsidies’ birthday party was not about saying every tax subsidy the oil companies get is bad,” said Rick Schwarck, President of the IRFA and CEO of Absolute Energy, an ethanol plant near St. Ansgar, Iowa. “Today’s ‘Century of Subsidies’ birthday party was a reminder to policy makers that Big Oil has benefited from taxpayer support for 100 years – and not just with tax subsidies, but mandates and loan guarantees and other policies.”

“So when the debate heats up over the Renewable Fuel Standard (RFS) and other renewable fuels policy, the debate should be a full, fair and factual discussion that takes an honest, hard look at how federal policy has been tilted in favor of Big Oil for a century,” continued Schwarck. American consumers deserve a level playing field that does not hold back homegrown, low-cost renewable fuels options.”

U.S. Senator Chuck Grassley (R-Iowa), who was voting on budget issues during the event submitted a statement in response to one hundred continuous years of oil subsidies. “America needs ‘all of the above’ for its energy policy, including domestic oil and gas, renewable energy, conservation, and emission-free nuclear. Oil, gas and nuclear all receive longstanding federal support. Any changes to support for renewables should be made within a broad-based energy policy discussion. Targeting renewables outside of a comprehensive debate doesn’t make any sense when it comes to good policy, and it’s intellectually dishonest if the effort is driven by competition that receives federal support.”

U.S. Senator Tom Harkin (D-Iowa) added, “This issue comes down to one thing: supporting renewable energy and our country’s energy security, all while creating good, middle class jobs that sustain a green economy in states like Iowa. That is why keeping the Renewable Fuel Standard in place is so critical. I salute ACE and the Iowa Renewable Fuels Association for recognizing these contributions and continuing their support at a time when it is needed the most.”

On Tuesday and Wednesday, nearly 70 ethanol advocates from around the country met with Congress to discuss the Renewable Fuel Standard (RFS), E15 and other ethanol related topics as part of ACE’s Biofuels Beltway March. The point of the press event was to show the need to counterbalance the “Century of Subsidies” and other policies that favor petroleum, in part by protecting the federal RFS. The RFS cracks open the petroleum monopoly to give consumers non-petroleum choices at the pump. Consumers benefit from market access to lower cost renewable fuels like E15 and E85.

Listen to the Century of Subsidies press event here: Celebration of a Century of Subsidies

View the ACE Biofuels Beltway March 2013 Photo Album.