Domestic Fuel

As Americans celebrate Independence Day this weekend, it is a good time to reflect on our need to increase our energy independence.

The good news is, we are becoming less dependent on foreign sources of oil for our transportation fuel needs. According to the Energy Information Administration (EIA), ethanol displaced almost 322 million barrels of oil in 2008. The Renewable Fuels Association (RFA) notes that is the equivalent of eliminating oil imports from Venezuela for 10 months, or looked at another way, it would mean that the U.S. would not have to import ANY oil for 33 days. It also saved American consumers and taxpayers $32 billion, an average of more than $87 million a day.

Despite well-publicized cases of economic troubles in the ethanol industry, the production and use of ethanol continues to increase. The latest EIA figures show that American ethanol facilities produced 640,000 barrels per day in April 2009, up by 78,000 barrels from last year. Ethanol demand, as calculated by the RFA, continued to strengthen heading into the summer driving season, with demand at 673,000, up 29,000 from March.

Jay Hakes, author of “A Declaration of Energy Independence,” says American Energy Independence means energy security, energy abundance and energy self-sufficiency.

Energy Independence is a civilization changing idea, like freedom, one that should be thought of much like we think of our national independence—our liberty, which is both an ideal and a physical reality. Energy Independence can and should be pursued with the same patriotic spirit that fought for, won and sustains American democracy and freedom.

The phrase “Energy Independence” is a slogan embodying an idea that resonates with the character of America—it is a call for return to economic balance and protection from vulnerability created by over-dependence on petroleum to fuel our cars, trucks and airplanes—it is a public outcry voiced by citizens demanding government leadership in energy production, distribution, security and fuel choice.

God Bless America.

The newest member of the U.S. Senate says he is pro-ethanol. In an interview with MinnPost.com today, Senator-elect Al Franken (D-MN) expressed his support for ethanol.

“What we’re talking about here is the science of how ethanol affects our carbon footprint,” Franken said. “The science to me tells me it helps. I’ve looked at this a lot, and it seems to me that ethanol already helps our carbon footprint and it’s only getting more efficient in the way it’s produced. Corn ethanol is a step on the way to cellulosic ethanol, which is also going to benefit Minnesota. I’m in the pro-ethanol camp.”

Franken’s campaign website gives his views on renewable energy and the need for America to reduce its dependence on foreign oil.

I think we need a new “Apollo project” – this time to fundamentally change our energy policy and end our reliance on foreign oil.

This “Apollo project” should provide financial support for research into new forms of renewable energy and development of currently-identified sources to make them more efficient. Of course I’m talking about corn ethanol. But I’m also talking about cellulosic ethanol and other biofuels. I’m talking about solar power. And, especially here in Minnesota, I’m talking about wind power. We live in a windy state!

This is the car you will drive if the Climate Bill passes the Senate.

A new Rasmussen Reports national telephone survey shows that 42 percent of Americans oppose the climate bill that passed the House last week because respondents believe the bill will hurt the economy. Well, the more I dig into the nuances of the proposed climate bill, the more I realize that this bill will do more damage than good.

Here are five reasons why the climate bill will ruin your life:

1) You won’t be able to sell your house if it doesn’t pass an energy audit. If your house fails, you’ll have to reduce the price of the house or update the house until you can pass the audit. Here’s an incentive that’s sure to rejuvenate the housing market.

2) The bill would require that all buildings built in the U.S. conform to meet California Building Code Standards. Who needs an affordable house anyway?

3) Your energy bills and other expenses will be higher. The republicans are complaining that the bill would raise yearly electricity bills $175 per year by 2020 but some experts say that an average family’s expenses will go up between $1,200 to $3,000 per year. Break out the summer fans and winter sweaters and blankets.

4) CRAP and RAID - also known as cap and trade.  The legislation mandates a 17 percent cut in greenhouse gas emissions by 2020 and an 83 percent cut by 2050. These cuts will be “enforced” in part through a cap and trade system which puts a price on CO2 emissions. With a program this well thought out, how could it not work?

5) The government will tell you what kind of car you can drive. No more gas guzzling SUVs people. Start peddling - you need the exercise anyway.

Now, I could be wrong. The Republican filibuster on CSPAN last Friday nearly put me in a coma, but seriously people, this bill needs an overhaul.

As we approach America’s independence day, the “energy security” benefit many organizations and government officials tout  may be overblown, according to a new study conducted by RAND Corporation. The study, “Does Imported Oil Threaten National Security?” evaluated the risks to national security associated with U.S. imports of oil and assessed the costs and benefits of policies to address these risks. The study was sponsored by the Institute for 21st Century Energy, which is affiliated with the U.S. Chamber of Commerce.

The RAND study evaluated several common concerns about U.S. dependence on imported oil, including:

•    the likely economic impact on the U.S. should a major drop in the global supply of oil occur,
•    attempts by oil exporters to manipulate exports to influence the U.S. or other countries in ways that  are harmful to U.S. interests,
•    the role of oil-export earnings in supporting terrorist groups, and
•    the costs of protecting the supply and transit of oil from the Persian Gulf.

The major finding of the study was that an abrupt and extended fall in the global oil supply and resulting higher prices would seriously disrupt U.S. economic activity, no matter how much or how little oil the U.S. imports. In addition, the study found that the U.S. current oil-export embargoes have been unsuccessful in advancing the foreign policy goals of oil exporters.

The study concludes with policy recommendations that should benefit, not harm the country as several of our current and proposed policies do. Click here to read the full report, “Does Imported Oil Threaten National Security?“

Farm state lawmakers led by Rep. Collin Peterson (D-MN) have reached a compromise with Democratic leadership in the House on the so-called climate change bill that makes it more palatable to agriculture and biofuels interests.

Part of the agreement includes allowing USDA to have oversight for agricultural carbon offset programs instead of EPA. “The climate change bill will include a strong agriculture offset program run by the U.S. Department of Agriculture that will allow farmers, ranchers, and forestland owners to participate fully in a market-based carbon offset program,” said Peterson. “This agreement also addresses concerns about international indirect land use provisions that unfairly restricted U.S. biofuels producers and exempts agriculture and forestry from the definition of a capped sector.”

The compromise over indirect land use issue was that bill sponsor Henry Waxman (D-CA) will ask the EPA to commission a study of indirect costs and that any method of counting those costs should be agreed to by both USDA and EPA.

Tom Buis, CEO of Growth Energy, was pleased that Peterson and Waxman were able to reach a compromise on the issue. “We believe that additional study of the issue of indirect land use change will further demonstrate that these provisions should never have been a part of the 2007 energy law to begin with,” Buis said in a statement. “This is a good first step in a longer process, including full review by the House and Senate.”

The American Clean Energy and Security Act is expected to come up for a vote on Friday and President Obama encouraged passage during his press conference yesterday. “It is legislation that will finally spark a clean energy transformation that will reduce our dependence on foreign oil and confront the carbon pollution that threatens our planet,” Obama said.

Non-hydro sources of electricity continues to gain market share according to the latest statistics published by the U.S. Energy Information Administration (EIA) in its “Electric Power Monthly” report released on June 15, 2009. The even better news is while renewable energy is growing, coal and natural gas use in steadily decreasing (five and four percent respectively) while nuclear power has remained virtually stagnant.

When comparing the first quarter of 2009 to the first quarter of 2008, renewable energy sources used for electrical production increased by 7.2 percent and accounted for 10 percent of the nation’s electrical generation. Conventional hydroelectric power increased by 4.6 percent while all other renewables combined (biomass, wind, geothermal, and solar) increased by 12.4 percent. When comparing 2009 to 2008 renewable resources have been and continue to be on a steady uphill trajactory.

“Apologists for the nuclear and fossil fuel industries persist in trying to mislead the public by repeatedly spreading the myth that renewables account for only a tiny fraction of U.S. electricity production,” comments Ken Bossong, executive director of the SUN DAY Campaign.  “However, the hard numbers document the continuing dramatic growth in renewable energy’s already-significant contribution to the nation’s electricity supply – a contribution that will eventually leave coal and nuclear behind in the dust.”

As 2009 continues, the momenteum continues to gain traction as renewables accounted for nearly 10.9 percent of net U.S. electrical generation in March 2009. Conventional hydroelectric power provided more than 6.9 percent of total U.S. electrical generation while other renewables generated almost four percent of electric power. Most notably, net generation from wind sources was 38.5 percent higher in March 2009 than it had been in March 2008.

The Environmental Protection Agency’s public hearing on the proposed rule for the Renewable Fuels Standard (RFS) is now underway in Washington, DC.

The first testimony presented was from Renewable Fuels Association President and CEO Bob Dinneen, who expressed the ethanol industry’s major concerns about the agnecy’s attempt to measure greenhouse gas lifecycle analysis including international indirect land use changes. “There is so much uncertainty in trying to account for international impacts that it renders the regulatory process incapable of determining a specific number,” said Dinneen. “We have concerns about some assumptions EPA has made. We think they have greatly underestimated increases in yields, underestimated impact of distillers grains, underestimated or used very conservative assumptions with regard to bushels of grain per acre - all of which will have a significant impact on this analysis.”

Listen to Dinneen’s testimony here:

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Manning Feraci of the National Biodiesel Board presented testimony at the hearing on behalf of the biodiesel industry. “We recognize that statute requires EPA to consider significant indirect emissions when calculating a renewable fuels emission profile,” said Feraci. “This does not require the EPA to rely on faulty data and unrealistic scenarios that punish the U.S. biodiesel industry for wholly unrelated land use decisions in South America.”

Listen to Feraci’s testimony here:

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The EPA hearing will continue all day today and then the agency will be holding a workshop on the RFS on Wednesday and Thursday.

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Agriculture Secretary Tom Vilsack says USDA has met President Obama’s 30-day directive to expedite and increase the production of biofuels.

“Further developing the biofuels industry helps create jobs and stimulates rural economies, an important part of getting our economy back on track,” Vilsack announced. “President Obama and I are committed to advancing clean and renewable energy as it creates jobs domestically and boosts tax revenues at all levels of government.”

Among the objectives USDA was asked to accomplish on May 5 were biofuels provisions of the energy title of the 2008 Farm Bill, including providing loan guarantees and grants for biorefineries, expediting funding to encourage biorefineries to replace the use of fossil fuels in plant operations and encouraging production of next-generation biofuels.

USDA is also launching the Biomass Crop Assistance Program for the collection, harvest, storage, and transportation of biomass for conversion facilities.

The Clean Fuels Development Coalition (CFDC), the Ethanol Across America education campaign, and the Flexible Fuel Vehicle Club teamed with Veterans of Underage Military Service (VUMS) with a procession of ethanol and hybrid vehicles in the national Memorial Day parade to highlight the role of energy and national security.

Capping a weekend of national remembrance for America’s fallen soldiers, the parade through the streets of the nation’s capitol featured hundreds of veterans with a crowd of more than 250,000 in attendance. The VUMS group represents the highest degree of dedication as it is comprised of veterans who enlisted despite being underage. Marine Lt. Col. (ret) William C. Holmberg, a VUM and a nationally recognized environmentalist and proponent of renewable energy like ethanol, conceived the idea several years ago to team the VUMS with groups promoting domestic alternatives to imported petroleum.

“Our slogan is There is no National Security without Energy Security,” said Holmberg. “Groups like CFDC, Ethanol Across America, and the Flexible Fuel Vehicle Club work every day to increase that awareness. Marching together in the shadow of the Washington Monument, the Capitol, and the memorials helps people get the connection that much the unrest around the globe has links to oil,” he said.

The procession included the CFDC/Ethanol Across America FlexFuel Chevy Avalanche, the Flexible Fuel Vehicle Club’s Chrysler Van, and several hybrid vehicles.

“Under any circumstances it would be an honor for us to be part of the salute to all those who have served. Our generation sees the loss of jobs, wealth, and military cost of importing more than 60% of our oil, and we have an opportunity to do something about it,” said Durante. “If reducing our dependence on oil keeps us out of one less conflict, and keeps young Americans from having to be memorialized, then we should all be working toward that goal.”

According to Flexible Fuel Club President Burl Haigwood, the parade provided an opportunity to increase public awareness that we can do something about it, right now. “With more than 7 million flex fuel vehicles on the road today, if we ran those vehicles on clean, domestic fuels like ethanol we could reduce our reliance on unstable regimes and reduce the military costs of protecting our oil interests,” said Haigwood.

Col. Holmberg’s concluded the days events stating, “Alternative fuel, high-mileage vehicles and ethanol are our front lines in securing a more secure energy future for America, and, by the way, major artillery in our climate change battles.”

President Barack Obama has proposed that vehicle fuel economy standards be substantially increased to 35.5 miles per gallon by the year 2016… and biodiesel could be a big benefactor of that change.

This article from Biodiesel Magazine says auto industry folks, such as Dave Barthmuss, group manager for General Motors Environment and Energy Communications North America, believe the new Corporate Average Fuel Economy (CAFE) requirements would make diesel engines more attractive… and thus, make the green fuel to put in those vehicles more attractive:

“Because diesel engines have greater fuel efficiency and can operate with biodiesel—which is a low-carbon fuel—expanding this area will be considered, but our plan is to achieve the reductions with our current portfolio.”

Because diesel engines can offer fleet operators savings on CAFE requirements, it has been speculated in the short time since the new CAFE overview was published that the sector could see more business. This could be a boon for biodiesel. “There definitely has been more of a push from the current administration to implement programs that help the biofuels industries,” said Robert Dascal of New Energy Fuels in Waller, Texas. “Increased diesel fuel utilization obviously opens up more of a market for us.”

GM officials believe having one consistent fuel economy standard… instead of the hodge-podge of individual states’ regulations… will provide a more consistent platform for manufacturers to shoot for.