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 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.

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.

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.

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.

“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.

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.

“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.

“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 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:

We write today in strong opposition to FY 2012 Interior, Environment, and Related Agencies Appropriations Bill amendment no. 6 offered by Rep. John Sullivan (R-Okla.) and Rep. Gary Peters (D-Mich.) and amendments no. 9 and 10 offered by Rep. Michael Burgess (R-Texas) that would prevent the U.S. Environmental Protection Agency (EPA) from implementing the approved use of 15 percent ethanol blended fuel (E15).

Preventing the EPA from implementing the use of E15 for cars, pickups and SUVs made in model year 2001 and newer, further contributes to our nation’s reliance on petroleum sourced fuels. Extensive testing has been done on E15 and it has been found to be a safe and effective fuel for use in the vehicles approved in the waiver. There has been no evidence to the contrary that would indicate problems in any vehicle regardless of vintage. In fact, the EPA’s approval of E15 was based on more exhaustive study and data collection than any of the 11 previously-approved fuel waiver petitions. No other fuel mix has been tested more. Consumers are not required to use E15 – it is a market choice.

Further, these amendments would inhibit new innovation to provide alternatives to foreign oil. We are looking toward cutting-edge innovation to move to new ethanol feedstocks, like plant wastes, wood chips, and switchgrass. The Sullivan/Peters and Burgess amendments would solidify the status quo – a 90 percent mandate of our fuel supply from oil and would prevent American-made ethanol – a more affordable vehicle fuel than regular gasoline – from getting to consumers.

The Sullivan/Peters and Burgess amendments halt efforts by the United States to broaden and diversify our sources of motor fuels.

At a time when prices at the pump are again approaching $4/gallon, in the interest of American consumers, American energy independence, and our national security, we urge you to vote NO on Sullivan/Peters amendment no. 6 and Burgess amendments no. 9 and 10.

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 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.

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.

“The fight is not over until we achieve real reform for the ethanol industry, but this vote sends a signal that there is a right way and a wrong way to go about it,” said Growth Energy CEO Tom Buis. “For more than a year, Growth Energy has advocated for our Fueling Freedom plan, which would phase out the VEETC in a fiscally responsible way, while redirecting the funds toward ethanol infrastructure build out. Opening the fuels market to ethanol, through Flex Fuel pumps and Flex Fuel vehicles, would give consumers a choice at the pump and allow us to ultimately eliminate all government assistance.”

The industry applauded the Senators who voted to stop the amendment from moving forward. Renewable Fuels Association President and CEO Bob Dinneen said, “This vote demonstrates the lack of appetite for this kind of destructive policy and political gamesmanship. The Senate and the country need to focus on a comprehensive energy strategy that seeks to expand America’s ability to renewably meet its fuel needs.”

Yesterday the ethanol industry joined together in support of another proposal introduced by Senators Thune and Klobuchar. This proposal also eliminates VEETC in its current form but replaces it with a variable tax incentive tied to the price of oil, which hit more than $120 a barrel today, a five week high. This proposal would also allocate funds to improve ethanol infrastructure and supports tax policies for emerging ethanol technologies.

“This vote is a major victory for the biofuels industry and American consumers and a setback for those clinging to our status-quo dependence on oil,” added Brian Jennings, executive vice president of the American Coalition for Ethanol. “It proves political stunts aimed at ethanol won’t be tolerated in the U.S. Senate. Now we can focus on continuing our work with the White House and both chambers of Congress to support meaningful and responsible legislation to reform ethanol policy.”

Seven agriculture and ethanol organizations sent a letter to the Senate leadership urging a no vote on the amendment proposed last week by Sen. Tom Coburn (R-OK). In it the groups note that, “As evidenced by the ethanol tax reform legislation recently introduced by a bipartisan group of senators and supported by our nation’s ethanol producers, the ethanol industry understands the need for reforming the tax incentive to significantly reduce costs to a more responsible approach that protects the evolution of the industry.” Groups signing the letter include the American Coalition for Ethanol, Advanced Ethanol Council, American Farm Bureau Federation, Growth Energy, National Corn Growers Association, National Farmers Union, and the Renewable Fuels Association.

Other groups that have voiced opposition to the amendment include the Petroleum Marketers Association of America (PMAA), and the Society of Independent Gasoline Marketers of America (SIGMA) which sent a letter to Sen. Coburn in opposition stating, “…an abrupt termination of VEETC before that date will injure many marketers who have contracts to purchase ethanol at prices that were premised upon the existence of VEETC through the year 2011. SIGMA assumes that such a consequence is not your intent and therefore urges you to forego any legislation which would end VEETC before the end of this year.”

A vote on the amendment is expected this afternoon.

The legislation would generate $2.5 billion by ending the blenders’ credit or VEETC on July 1, 2011, and allocate $1 billion to deficit reduction and invest $1.5 billion in a blender pump tax credit, cellulosic biofuel tax incentives, a variable VEETC safety-net, and extension of the Small Ethanol Producer Tax Credit. While the USDA currently has a 10,000 blender pump program, the Ethanol Reform and Deficit Reduction Act also calls for 53,000 blender pumps – a number the ethanol industry feels is necessary to meet the Renewable Fuels Standard requirements.

“The legislation essentially sacrifices the ethanol blenders’ credit to catalyze next-generation biofuels and level the playing field with oil with one half of the market access puzzle – blender pumps,” said Brian Jennings, executive vice president of the American Coalition for Ethanol. “The other half of the market access puzzle, Flexible Fuel Vehicles (FFVs) will need to be addressed separately. ACE has been working behind the scenes with Republicans, Democrats, and the White House to advance this reform package and we will strongly support its adoption in Congress.”

Renewable Fuels Association President and CEO Bob Dinneen added, “This is thoughtful, responsible legislation that addresses the need for sound budget policy with progressive and innovative strategies for creating jobs and ending America’s addiction to imported oil. This bipartisan, forward-looking approach stands in stark contrast to other Senate gimmicks that would seek to end America’s efforts to replace imported oil with domestically-produced renewable fuels like ethanol. America’s entire ethanol industry stands in support of this effort and is proud to work with these Senate leaders to proactively offer responsible reform ideas and seek to see this bill become law through following the proper legislative process.”

Original cosponsors of the bill include: Senators Grassley, Tom Harkin (D-IA), Mike Johanns (R-NE), Ben Nelson (D-NE), Richard Lugar (R-IN), Tim Johnson (D-SD), John Hoeven (R-ND), Al Franken (D-MN), and Jerry Moran (R-KS).

“Sens. Thune and Klobuchar are proposing a fiscally-responsible bill that reforms ethanol tax policy in a manner that creates U.S. jobs, gives American motorists a choice at the pump, reduces our nation’s dependence on foreign oil and encourages the development of ethanol from next-generation feedstocks, such as cellulosic biomass,” concluded Growth Energy CEO Tom Buis. We urge the Congress to take up and pass this bipartisan bill. Ultimately, what the Thune-Klobuchar legislation does is provide both near- and long-term solutions to higher gas prices and the unwanted influence of OPEC on our economy.”

“Sen. Coburn filed his legislation within 24 hours of OPEC’s decision to let Americans suffer through high gas prices this summer,” added Growth Energy CEO Tom Buis. “Sen. Coburn clearly doesn’t see the danger of letting Iran, Venezuela and Libya control our economy, but there are other senators who do. Domestic ethanol is the only viable alternative we have to foreign oil. Ironically, Sen. Coburn proposes his legislation to repeal ethanol tax policy just weeks after he helped defeat an effort to cut tens of billions of dollars in taxpayer giveaways to global oil companies who recently received all time record profits at the expense of American motorists.”

This amendment puts Big Oil politics ahead of the best interests of the country, believes Brian Jennings, executive director of the American Coalition for Ethanol (ACE). According to opensecrets.org, Coburn received $250,000 in campaign contributions from oil and gas companies since 2005. Jennings says that as a result, Coburn is doing the bidding of Big Oil, which is to effectively raise fuel prices on consumers, put American ethanol jobs in jeopardy and keep America dependent on foreign oil.

Jennings added, “ACE members encourage Senators to vote against the Coburn amendment and support our effort to reform VEETC, promote next-generation biofuels and provide consumers with fuel choice. We also urge Congress to recognize that budget cuts shouldn’t disproportionately discriminate against American ethanol while leaving taxpayers on the hook for hundreds of billions of dollars of subsidies for oil companies.”

The Renewable Fuels Association and Growth Energy are also asking consumers to contact their Senators and ask them to Vote NO on this amendment.

Last month, former Minnesota Governor Pawlenty called for the phase out of ethanol subsides. He made this announcement during his first official campaign stop, Des Moines, Iowa. Then earlier this week, former Utah Governor Jon Huntsman announced he would bypass the Iowa caucuses due to his stance on biofuels and agricultural subsidies – he wants them to disappear.

Brian Jennings, executive vice president of ACE, said this forum is a way for supporters of ethanol to learn more about candidates’ positions on ethanol. The forum will also serve as a means for the presidential candidates to learn more about ethanol.

“With ethanol already becoming a hot topic on the campaign trail, we want the candidates to recognize how ethanol will help make the U.S. more energy secure and that we’ve been proactively working in Congress to reform the ethanol tax incentive,” said Jennings. “We are willing to responsibly reform and reduce the cost of the ethanol tax incentive. However, ACE does not believe budget cuts should just discriminate against American ethanol, while the taxpayer is still footing the bill for hundreds of billions of subsidies for the oil industry.”

ACE’s energy policy forum will take place during their 24th annual ethanol conference taking place in Des Moines, Iowa starting on Tuesday, August 23rd.

Renewable Fuels Association President and CEO Bob Dinneen says they endorse the Open Fuel Standard Act introduced by Representatives John Shimkus and Elliot Engel. Additionally, the RFA has endorsed similar legislation offered by Senators Tom Harkin and Richard Lugar. “Ethanol remains the only proven, widely available alternative to gasoline today and will so for the foreseeable future,” Dinneen said. “Investments in vehicle technologies that can accommodate a wide range of ethanol blends will necessarily expand the market for ethanol and create new opportunities for developing and nearly commercial ethanol technologies. More ethanol-ready vehicles are a critical component to the nation’s strategy to end our addiction to oil.”

American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings says the legislation offers a wide range of fuel choices for both consumers and energy independence advocates. “ACE strongly supports the Open Fuels Standard because it provides consumers with meaningful fuel choices, including American-made ethanol. With gas prices hovering at four dollars a gallon, and with oil companies unapologetic about massive profits, and refusing to even consider changes to their favored tax status, it is time for us to create real competition in the fuel marketplace, and this legislation does just that,” he said.

“Each additional Flex Fuel vehicle on the road gives consumers a choice in their fuels, while lowering the price at the pump and strengthening our energy security,” said Growth Energy President Jim Nussle. “Our nation’s dependence on foreign oil is unsustainable and is hurting our economy and national security. It’s time to invest in smart policies like these that will create competition in the fuels market and break the stronghold that oil companies and Middle East cartels have on our nation.”

H.R. 1687, the Open Fuel Standard Act of 2011, would require that 50 percent of new automobiles in 2014, 80 percent in 2016, and 95 percent in 2017 would be warranted to operate on non-petroleum fuels in addition to, or instead of, petroleum based fuels.

“The hard truth is there are no longer any sacred programs,” Pawlenty said. “The truth about federal energy subsidies — including federal subsidies for ethanol — is that they need to be phased out. We need to do it gradually. We need to do it fairly, but we need to do it.”

Pawlenty stressed his strong support for ethanol. “The industry has made large investments and it wouldn’t be fair to pull the rug out from under them immediately, but we must face the truth that if we want to invite more competition, more investment and more innovation in the industry, we need to get the government out,” he added.

Listen to Pawlenty’s comments regarding ethanol here: Candidate Pawlenty on Ethanol

In response, Iowa Renewable Fuels Association President Walt Wendland, CEO of two Iowa ethanol companies, said the ethanol industry is on board with the reform and phase down of the current ethanol incentive as part of the discussion on all energy programs as proposed by Iowa Sen. Chuck Grassley. “Governor Pawlenty’s remarks today appear to be in line with Sen. Grassley’s approach for ethanol reform,” Wendland said, noting that the governor pointed out that energy incentive reforms must be across the board. “We agree that the massive amount of federally funded petroleum incentives must be a part of any reform discussion. Iowans look forward to Gov. Pawlenty further detailing his plans to ‘phase out’ petroleum subsidies, perhaps in a speech in Houston, Texas.”

American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings says Pawlenty’s stance on ethanol mirrors the thoughts of many ethanol supporters.

“The U.S. ethanol industry has been working proactively with the White House and both Senate and Congressional leaders on reforming the ethanol tax incentive by reducing its cost and emphasizing consumer fuel choice,” Jennings said. “We appreciate Governor Pawlenty’s position that there are no sacred programs and that all energy subsidies, particularly oil tax subsidies, need to be changed, because the U.S. can no longer afford them.”

Pawlenty is a Minnesota native who served two terms as that state’s governor. His official announcement kicked off a campaign this week that will include stops in Florida, New Hampshire, New York and Washington D.C..

In addition, the webinar will provide information on the Department of Agriculture’s (USDA) Rural Energy for America Program (REAP). The program has allocated $70 million in funding for retailers interested in expanding or updating their renewable fuel infrastructure with blender pumps. The monies are delivered through a combination of grants and loan guarantees. The USDA has a goal of installing 10,000 blender pumps in the next 15 years throughout the country. Applications are due June 15, 2011.

The webinar is being held on Monday, May 16, 2011 at 3:00 pm EDT. Although this webinar is free, you are encouraged to register by visiting www.BYOethanol.com.

Introducing the bill, Grassley said the Domestic Energy Promotion Act of 2011 would reduce the VEETC for a two year period before transitioning to a tax credit that would adjust based on the price of oil. “When crude oil is more than $90 a barrel, there will be no blenders’ credit. When crude oil is $50 and below, the blenders’ credit will be 30 cents,” Grassley said. “When oil prices are high, a natural incentive should exist in the market to drive ethanol use.”

The bill would also improve upon current tax credits for the installation of blender pumps and ethanol fueling infrastructure as well as extend tax credits for small ethanol producers, advanced and cellulosic ethanol.

The American Coalition for Ethanol (ACE), Growth Energy, the National Corn Growers Association (NCGA), and the Renewable Fuels Association (RFA) issued a joint statement praising the legislation:

“This legislation rightfully recognizes budget constraints by reforming the ethanol tax credit and significantly reducing its cost. Additionally, this bill would improve current tax credits for the installation of blender pumps offering higher level ethanol blends and provide Americans more choice when they fill up. Critically, this legislation would also ensure progress made to commercialize advanced ethanol technologies utilizing new feedstocks such as grasses and municipal solid waste is accelerated. We thank these senators for their leadership in introducing this bill and look forward to working with them through the legislative process that ultimately ends with the President’s signature.”

The bill contrasts sharply with legislation introduced yesterday by Sens. Tom Coburn (R-OK) and Dianne Feinstein (D-CA) that would eliminate the U.S. tax credit for ethanol and the tariff on ethanol imports, a move that, based on a new report, the industry contends would result in significantly higher gasoline prices.

In recent years, ACE paired its annual conference with a trade show. This year, to better serve ACE members, ACE will partner with BBI as a Supporting Organization for the FEW, allowing ethanol industry suppliers and plant operators to concentrate on one trade show, and giving ACE the opportunity to focus its efforts on continuing to provide a valuable conference event. ACE will continue to hold its annual conference separate from FEW.

“ACE is proud to partner with BBI and pleased to support one industry exposition at the FEW,” said Brian Jennings, Executive Vice President of ACE. “Both organizations have a longstanding history of offering first-class events to the ethanol industry, and we believe this partnership will continue to strengthen the industry as a whole.”

The International Fuel Ethanol Workshop & Expo will take place June 27-30, 2011 in Indianapolis, IN and the ACE Conference will be held August 22-24, 2011 in Des Moines, IA.

Also expected to speak were some of the organizations who have been outspoken for several years against the ethanol tax credit (VEETC) that actually goes to the blender of record, not to the ethanol industry, as well as the “food and fuel” debate. These groups included the International Food Policy Research Institute, Environmental Working Group and Taxpayers for Common Sense.

The ethanol industry responded to the forum with one voice. The Renewable Fuels Association, Growth Energy, the National Corn Growers Association and American Coalition for Ethanol released a statement. The organizations also noted that according to the Institute for Local Self Reliance, 75 cents of every dollar spent on biofuels re‐circulates through the local economy while 75 cents of every dollar spent on oil exits the local economy and, in most cases, the country.

“Any energy policy forum must include comprehensive and adult conversations about America’s entire energy agenda, including subsidies and other supportive policies for mature and aging technologies like petroleum. Unfortunately, it is unlikely this ‘forum’ will include any of those discussions. Rather, this is yet another example of defenders of the status quo wasting the time of Congress focusing on bogus claims against the ethanol industry instead of finding solutions to the real problems.

“Anyone who has filled a gas tank the last few months has unwittingly witnessed the prime cause of soaring prices for all consumer goods, especially food. The last time corn and food prices rose, the Congressional Budget Office found that factors other than biofuels were responsible for as much as 90 percent of the hike. The World Bank and the government of the United Kingdom have concluded that speculation and energy prices were chief drivers of the 2007-08 spikes in commodity and food prices. How anyone can point fingers at farmers for driving up food prices when they receive less than 12 cents of every food dollar defies common sense.

“Ethanol is the only viable solution we have today to help with our country’s energy security and independence. Today, when it can easily cost over $50 to fill a gas tank, critics would be wise to remember that domestic ethanol actually has helped motorists by lowering gas prices by estimates as high as 40 cents per gallon. To put it in even better perspective, the value of the crude oil displaced by U.S. ethanol amounted to $34 billion in 2010 – money that stayed in the American economy. In the end, that’s the best way to support food and energy security, not through holding make-believe one-sided policy forums.”

I had a brief chance to speak with Executive Vice President Brian Jennings via Skype between meetings and he said the group’s priorities during the meetings are to show the proven benefits of ethanol, promote fuel choice through Flexible Fuel Vehicles and blender pumps, and to reform the ethanol tax credit (VEETC) while preventing moves for its repeal.

Listen to Brian’s Skype interview from D.C. here: Biofuels Beltway March Update From DC

Jennings stressed the importance of the timing of the fly-in and said that the ACE group will meet with nearly half of the freshman Members of Congress. More than half of this freshman group voted against E15 or blender pumps in the Continuing Resolution.

“We are not preaching to the choir. We’re putting boots on the ground to meet one-on-one with people who need to learn the facts about ethanol, and we plan to make a real impact in these two days,” Jennings added.

The group has been addressed by special guests USDA Under Secretary for Rural Development Dallas Tonsager, U.S. Senator Amy Klobuchar (D-MN), U.S. Senator John Thune (R-SD), part of the GOP leadership and member of the Senator Finance Committee which has jurisdiction over ethanol tax issues.

For those not able to attend but would like to get involved in ACE’s grassroots efforts, can check out their “Virtual Fly-In” campaign and send messages to Members of Congress coinciding with their face-to-face meetings. The messages urge Congress to vote against Senator Coburn’s (R-OK) amendment to repeal the Volumetric Ethanol Excise Tax Credit (VEETC). Messages may be sent this week through ACE’s Legislative Action Center.

You can also view photos from the meetings in their “Biofuels Beltway March” photo album.

“When it comes to offense, we’re clearly going to put a lot of emphasis on the need for consumer fuel choice,” said Jennings. “For policies in Washington that relate to ethanol, to deploy more flexible fuel vehicles and more blender pumps, or consumer choice pumps, so motorists have the opportunity and the freedom, if you will, to use these higher blends of ethanol. Because today we simply do not have that critical mass of that infrastructure that we need.”

Jennings said that the group will also be discussing some ideas they have for reforming the ethanol tax incentives. Last year, the Volumetric Ethanol Excise Tax Credit (VEETC) was extended for one year at 45 cents per gallon with the credit going to the blender of record. He noted, “The ethanol industry understands that’s the last extension of VEETC we’re ever going to receive. So if we want any sort of economic incentive to remain in place until we get to that critical mass of FFVs and blender pumps, we’re going to have to significantly reduce the taxpayer cost of that incentive and determine other reforms that focus better on where it needs to go.”

Defensively, Jennings said the group will focus on defending the industry against some bad votes in the House. “You had an amendment that was adopted that was proposed by Congressman Flake of Arizona that would prevent the United States Department of Agriculture from helping to install blender pumps. That’s a problem because later this month USDA is going to announce a grant and loan guarantee program designed to install blender pumps,” said Jennings.

Another amendment by Sullivan from Oklahoma would restrict the EPA from moving forward to implement the E15 decision. “Those two amendments received strong bi-partisan support in the House,” said Jennings. “Now they’re likely going no where in the Senate but when we meet with members of the House during the fly-in a lot of the emphasis is going to be on setting the record straight regarding the E15 waiver process and all of the science that was used to justify the waiver, and educating members of Congress why a consumer choice pump makes sense.”

I asked Jennings about the disconnect between current policy makers regarding biofuels and the high prices of gas at the pump – now over $4.00 a gallon in many cities across the country. Jennings said our opponents have unfortunately done a good job of defining the industry and that we have to take that message back – another focus for the grassroots group in D.C. Jennings concluded that “a real, live constituent from a Senator’s state or member of Congress’ legislative district can make such a more compelling and persuasive case to a member of Congress than a paid lobbyist.” And that is why he believes this fly-in is so important.

You can listen to my full interview with Brian Jennings, EVP of ACE, here: Brian Jennings Highlights DC Fly-In

Grassley said today during his weekly agricultural media conference call that there are two ways the vote can be avoided. “Either talking him out of it, or denying unanimous consent to bring it up, and I think we can do the latter,” he said. Grassley say he is trying to “reason with” Coburn and urge him to take up the issue within the context of energy legislation so to “have ethanol be viewed as part of an overall energy program” instead of having it be part of the spending bill debate.

According to Grassley, Coburn says he has 55 votes. “He probably needs 60 votes. I think we can probably keep him from getting 60 votes. But, quite frankly, I don’t want anybody on record, if we can avoid it, on the ethanol issue until we get down to discussing it as part of the energy debate.”

Listen to Grassley’s comments in answer to a question by Dan Looker of Successful Farming. Sen. Grassley

Meanwhile, as the future of the VEETC remains unsure in Congress, ethanol interests are reportedly in negotiations on a proposal for moving beyond the VEETC. According to DTN/The Progressive Farmer, representatives from the American Coalition for Ethanol, Growth Energy, National Corn Growers Association and Renewable Fuels Association have been working on a compromise proposal this week, getting input from lawmakers in Washington.

ACE members from around the country are meeting in DC March 29-30 to visit Members of Congress and their staff to discuss issues such as ethanol tax incentives and market access including the E15 waiver, flexible fuel vehicles and blender pumps. Last year 30 advocates participated in the program and this year ACE hopes more than 60 people will head to DC.

“We are pleased that Senator Thune will be meeting with us as we gather in DC later this month,” said Brian Jennings, Executive Vice President of ACE. “I encourage all ethanol supporters to consider making the trip to visit personally with Senator Thune and other Members of Congress in their offices on the Hill. Given two recent votes in the U.S. House of Representatives against ethanol, we need to rally ethanol advocates, and meeting one-on-one is the most effective way to get our important message across.”

Senator Thune will address the group at a reception on Tuesday evening, March 29, after the first day of Hill visits. Senator Amy Klobuchar (D-MN) and Dallas Tonsager, USDA Under Secretary for Rural Development have also been invited to speak to the ACE group while in DC.