EPA Approves Summer Gasoline RVP Requests

As reported by Platts, the U.S. Environmental Protection Agency has approved Florida’s and North Carolina’s requests to allow certain counties to continue using 9 RVP gasoline through the summer season (or known as the traditional VOC reduction season). As it relates to ethanol, this allows these counties to blend E15 (15 percent ethanol, 85 percent gasoline) throughout the summer. Last year, states including Iowa were unable to sell the E15 blend due to VOC requirements.

EPA_LOGOEPA Gina McCarthy signed the unofficial document on March 19, 2014 and has submitted the document for publication in the Federal Register. The EPA regulates gasoline volatility, measured by Reid Vapor pressure during the “summer season” from June 1 through September 15. Platts reports that for refiners and terminals, this period shifts from May 1 through September 15.

The counties approved for the 9 RVP gasoline include Raleigh-Durham-Chapel Hill and Greensboro-Winston-Salem-High Point areas in North Carolina and Broward, Dale, Duval, Hillsborough, Palm Beach and Penella, all counties in and around Miami, Florida. Prior to the approval, these counties were only approved to use 7.8 RVP gasoline during this time frame.

Platts reports the rule is expected to go into effect without future notice unless the EPA receives negative comments within 30 days of the rules publication in the Federal Register.

It should be noted that this ruling, once in effect, could encourage other counties or states to also submit requests to the EPA for approval to sell the 9 RVP gasoline during the June 1 – September 25 time frame as a means to be approved to legally sell E15 year round to vehicles and light duty trucks manufactured in 2001 or later.

Retailers Tell Ethanol Story at ACE Fly-in

Fuel retailers in ethanol producing states had compelling stories to tell at the American Coalition for Ethanol Biofuels Beltway March last week in Washington DC. Several of them sat down with reporters during the event to talk about their success selling higher ethanol blends, as well as the hurdles they had to overcome to do so.

ace14-dc-badenhopGlenn Bedanhop is a third generation farmer who is also president and CEO of American Freedom Energy in the small town of Liberty Center, about 30 miles west of Toledo, Ohio. “It’s rewarding knowing the value you’re putting back in your local community,” said Badenhop, who became the first retailer in Ohio to offer E15 in January because he believes in consumer choice. “It’s their choice,” he said. “We’re not mandating that they buy Coke, Pepsi, Dr. Pepper – it’s just like the fuels.” Interview with Glenn Badenhop, Ohio fuel retailer

ace14-dc-goodCharlie Good has been in the fuel retailing business for 34 years as a convenience store operator and auto mechanic and he started offering higher ethanol blends at his Good and Quick store in Nevada, Iowa last August despite his supplier’s objections. “I had to de-brand because the oil company didn’t want that under their canopy,” said Good. “My sales are up 20-25% a month and of the gallons that they’re up, virtually all of it is the ethanol fuels.” Interview with Charlie Good, Iowa fuel retailer

ace14-dc-vollanBruce Vollan started using blender pumps at his rural Baltic, South Dakota convenience store six years ago. “My experience has been pretty incredible,” he said. “You see a lot of people actively seeking out blends.” Vollan has seen his small business has grown to 13 full and part time employees and he says the negative publicity about ethanol doesn’t bother him because he believes he’s on the right team. He was happy to take time away from his business to take his story to Washington DC and let lawmakers and bureaucrats know what is really happening. “That’s what the ethanol industry is all about,” he said. “It’s about telling the truth.” Interview with Bruce Vollan, South Dakota fuel retailer


2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

IRFA: Strong Plantings Report Calls for Strong RFS

IowaRFAlogoExpected big plantings of corn and soybeans underscore the need for a strong Renewable Fuels Standard (RFS). New estimates from the U.S. Department of Agriculture (USDA) show a possible record amount of soybeans expected to be planted this year and the fifth largest corn acreage to be planted as well. The Iowa Renewable Fuels Association (IRFA) says these factors show why a strong and growing RFS is needed this year.

“The past eight years were prosperous for agriculture because the RFS was allowed to act as a sponge, soaking up additional corn and soybeans when needed,” stated IRFA Executive Director Monte Shaw. “The vast amount of corn and soybeans expected to be planted in 2014 demonstrates the importance of a strong and growing RFS. If the EPA’s proposal to essentially gut the RFS is allowed to become final, we could see huge carryovers, crop prices plummet below the cost of production, and family farms placed in jeopardy.”

Nearly 92 million acres is expected to be dedicated to corn this year and a record 81.5 million acres for soybeans, a six percent increase from last year.

EPA’s Feeling About RFS? Depends Who’s Asking

epa-logoHow does the Environmental Protection Agency (EPA) feel about its proposal to cut the amount of ethanol and biodiesel to be blended into the Nation’s fuel supply? Well, that depends on who the folks at the agency are talking to.

Speaking before the House Appropriations Committee last week, EPA Administrator Gina McCarthy seemed to backtrack on last January’s statements before biofuels advocates when she told them that her agency “heard loud and clear that we didn’t hit that right,” indicating the EPA could be changing its stance. But when grilled by Congressman David Valadao (R-CA) who represents California agriculture and oil interests, McCarthy had a different response.

“We’re going to make sure to take a reasonable approach that recognizes the infrastructure challenges and the inability at this point to achieve the levels of ethanol that are in the law,” she said.

It’s also interesting that McCarthy did not challenge part of the premise in Valadao’s original question that stated how consumers’ vehicles could not handle higher blends than being offered right now, specifically E10. Biofuels advocates have long made the claim that most vehicles can handle at least 15 percent ethanol blends (E15), and two years ago the EPA approved E15 for use in 2001 and newer vehicles.

You can hear for yourself what McCarthy said here: EPA Administrator Gina McCarthy Before House Appropriations Committee

Sen. Thune Meets with Ethanol Supporters

ace14-dc-thune-groupA team of four biofuels supporters had the chance to meet with Sen. John Thune (R-SD) last week while in Washington DC for the American Coalition for Ethanol (ACE) Biofuels Beltway March.

In an interview following that meeting, Thune talked about some of the issues facing the biofuels industry, in particular the EPA proposal to lower volume requirements under the Renewable Fuel Standard. “Trying to reverse the EPA’s decision on this is what we’ve been focused on since it came out,” said Sen. Thune.”Going down to 13.1 gallons is horrible for the industry so we hope they make some accommodation for getting beyond the blend wall.”

Thune says he expects to Congress to get a package of expired tax credit extensions passed soon, including renewable energy credits for wind, advanced biofuels, and biodiesel. “It’s very hard for people to plan to invest when they don’t know what the rules are going to be,” he said.

The senator also talked about the rail delays that have been impacting shipments of ethanol and grain. “The railroads are going to have to do a better job,” he said, noting that the problem has been caused by both the long, cold winter and increased shipping of crude oil from North Dakota. “It’s important that the railroads recognize that agricultural commodities need to be shipped too.” Interview with Senator John Thune (R-SD)

2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

DF Cast: Lawmakers Listening to Ethanol Advocates

Ethanol backers got their voices heard during the recent American Coalition for Ethanol (ACE) Biofuels Beltway March in Washington, D.C. And at least some lawmakers were listening.

In this edition of the Domestic Fuel Cast, we talk to Rep. Rodney Davis (R-IL), Sen. Mike Johanns (R-NE), and Sen. John Thune (R-SD), who met with ACE and its supporters and all expressed their backing of efforts to keep renewable fuels, especially ethanol, in the forefront of federal policies.

Listen to what they had to say after they listened to ACE: Domestic Fuel Cast - Lawmakers Meet with Ethanol Advocates

You can also subscribe to the DomesticFuel Cast here.

2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

Shaw has Ethanol Support for Congress

A candidate for Congress believes his background in ethanol will help him in the upcoming primary and general election. And for Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw, who has served in that role for nearly 10 years and now is running for the 3rd Congressional District seat, that background runs pretty deep.

Growth Energy CEO Tom Buis and Renewable Fuels Association CEO Bob Dinneen both on the side of Monte Shaw for Congress

Growth Energy CEO Tom Buis and Renewable Fuels Association CEO Bob Dinneen both on the side of Monte Shaw for Congress

“This is Iowa. If agriculture does well, Iowa does well,” said Shaw during an interview in Washington DC last week, pointing out how the renewable fuels has helped power the ag industry and the overall economy in the Hawkeye State. “So when people talk about how we need to get the economy going a bit more, we need more jobs, we need more robust economic growth, I have been part of that. And that’s something I want to put to work in Congress.”

Shaw says Big Oil has been fighting the Renewable Fuels Standard (RFS) hard, and Iowans need a representative on the inside in Washington who will fight for the economic interests that alternative energy brings.

“I think it would be good for the industry to have someone like me in the House Republican Caucus. There’s a lot of petroleum folks in there, and sometimes they like to forget all the tax credits and mandates and loan guarantees that petroleum gets, and I’d be happy to go there and point those things out out,” he said.

Shaw is facing five other Republicans in the June 3rd primary, so he is hitting the campaign trail as hard as he can while still working full time for Iowa RFA, with the flexibility granted to him by the association board of directors. If elected to Congress, he feels confident in the many renewable energy leaders back in Iowa who can step up in his place.

“As one of my board members is fond of pointing out to me, the graveyard is full of indispensable men,” he said, laughing.

You can read more about his campaign here.

And you can hear all of Cindy’s interview with Monte here: Interview with Monte Shaw, Iowa Congressional Candidate

American Ethanol on the NASCAR Green® Team

nascar-race-greenAmerican Ethanol is once again partnering with NASCAR® for the NASCAR Race to Green™ initiative now through April 25 to promote environmentally friendly biofuels.

The goal of the initiative is to highlight the accomplishments of green programs that have helped reduce the NASCAR’s carbon footprint. “This partnership with NASCAR Green truly shows the sport’s commitment to preserving our environment. Each race further proves ethanol is a reliable, high-performance fuel that has revitalized our rural communities and created more than 400,000 jobs across the country,” said Tom Buis, CEO of Growth Energy.

American-Ethanol-and-NASCAR-LogoAmerican Ethanol has partnered with NASCAR since 2011 to promote the use of biofuels by using Sunoco Green E15, a 15 percent ethanol blended fuel, across its three national series. American Ethanol also sponsors the Richard Childress Racing No. 3 Chevrolet SS driven by Sunoco Rookie of the Year™ contender and 2013 NASCAR Nationwide Series™ Champion Austin Dillon.

I had a chance to catch up with Buis while in DC last week and this year’s American Ethanol program was one of several topics we discussed. Interview with Growth Energy CEO Tom Buis

Global Ethanol Output to Exceed 90 Billion Litres

The latest forecast calls for global ethanol production to exceed 90 billion litres, or about 24 billion gallons, in 2014.

GRFA1The Global Annual Ethanol Production Forecast from the Global Renewable Fuels Alliance (GRFA), in cooperation with F.O. Licht, estimates the world’s ethanol output will peak at 90.38 billion litres this year.

That amounts to an increase of almost 2.7% growth in production, up from 88 billion litres in 2013, according to GRFA spokesman Bliss Baker. “While forecasts of global economic growth remain sluggish, the global ethanol industry continues to increase its production and contribution to the global economy,” said Baker.

The latest data from F.O. Licht shows significant growth in most major ethanol producing regions in 2014. The world’s two largest producers, Brazil and the United States, are forecasted to maintain and increase their production by almost 2.5% respectively. Another major producing region, the European Union, is forecasted to see ethanol production jump over 8% this year. Africa, an emerging region with huge biofuel production potential is forecasted to see a growth of more than 136% in ethanol production in 2014.

“Although total volumes of ethanol produced in emerging regions like Africa are lower in comparison to more established producers, a production increase of over 130% is incredible because we know that these production increases will drive new investment in agricultural and job creation while reducing Africa’s reliance on imported oil,” stated Baker.

Ethanol Report From RFA in DC

dinneen-dcAfter the ACE Biofuels Beltway March, I was able to stop by and visit with Renewable Fuels Association president and CEO Bob Dinneen in his Washington DC office and we covered the waterfront on issues currently facing the ethanol industry.

ethanol-report-adIn this Ethanol Report, Dinneen discusses what he’s hearing about the EPA proposal to lower the RFS, the latest anti-RFS ad campaign from Big Oil, rail delays impacting ethanol shipments, getting the tax credits for advanced biofuels reinstated, USDA plans to continue to support ethanol, and enthusiasm in the industry.

Ethanol Report with RFA president Bob Dinneen from DC

Subscribe to “The Ethanol Report” with this link.

BIO Report Says Lowering RFS Will Increase GHG

biologo2A new white paper from the Biotechnology Industry Organization (BIO) finds that lowering the volume requirements for biofuels under the Renewable Fuels Standard (RFS) as proposed by the administration will lead to an increase in emissions of greenhouse gases next year.

According to Brent Erickson, Executive Vice President of BIO’s Industrial & Environmental Section and lead author of the special report, the proposal from the Environmental Protection Agency could “reverse progress on one of the central goals of the law – reducing climate-changing emissions from the U.S. transportation sector.”

The paper utilizes Energy Information Administration projections of fuel use from 2014 to 2022 to estimate volumes of petroleum and biofuel use for each year. The authors then assigned estimates of greenhouse gas emissions from the GREET1.2013 model to the volumes and added up year-by-year emissions. Based on EPA’s proposed requirements for 2014, the United States would emit 6.6 million more metric tons of CO2 equivalent greenhouse gases than it did in 2013. If EPA followed past practice, allowing the overall requirements to remain at the statutory level, the achieved reduction in GHG emissions would be 21.6 million metric tons CO2e. The difference between the increase and the achievable decrease is equivalent to putting 5.9 million additional cars on the road next year. Under other available options for setting the RFS volume requirements, the United States could still achieve carbon emission reductions, the paper finds.

Read the report here.

Synthetic Chromosome Could Help Biodiesel, Ethanol

boekeThe scientific world today is all a-buzz about the world’s first yeast synthetic chromosome, and the discovery could help the biodiesel and ethanol industries. This article from the Christian Science Monitor says researchers have put together man-made DNA into the synthetic version of a chromosome, a development expected to have implications for the green fuels.

“For me, one of most exciting aspects is the fact that we’ve so extensively edited the sequence of natural chromosome and then synthesized the entire thing from scratch,” said study leader Jef Boeke, a synthetic biologist at NYU Langone Medical Center, who was previously at Johns Hopkins University.

Using a technique known as “scrambling,” the scientists can shuffle the yeast genes like a deck of cards. The researchers could make millions and millions of different decks of genetic cards, which could give yeast totally new properties.

For example, researchers could make synthetic strains of yeast to produce rare medicines such as the malarial drug artemisinin, or vaccines like the hepatitis B vaccine. Synthetic yeast could also churn out more efficient biofuels, such as alcohol, butanol or biodiesel, which could enable humanity to transition off of a petroleum economy, Boeke said.

For now, the costs are prohibitive for the biofuels industry, or any industry for that matter, to use. But the scientists are hopeful they’ll be able to get the costs down as the technology improves.

The Littlest Lobbyist for Ethanol

ace14-dc-ethan1Wearing a tie and sporting a “Don’t Mess with the RFS” button, 10-year-old Ethan Fagen was the youngest of the American Coalition for Ethanol (ACE) Biofuels Beltway marchers this week on Capitol Hill.

Ethan came along with his grandfather, Ron Fagen of Fagen, Inc., and was right in the trenches handing out materials and talking about the benefits of ethanol, like how good it is for the environment compared to fossil fuels. “Think in 200 years if you run ethanol there will be cleaner air for the next generation,” said Ethan, who is part of that next generation.

ace14-dc-fagensSitting in the front as the ACE Fly-in participants heard from government officials, Ethan caught the attention of Secretary of Agriculture Tom Vilsack, who thought it was “pretty cool” he was there for the event.

In my interview with Ethan, he told me that he would like to be a farmer someday and grow corn and have cattle. It’s interesting that if you add two letters to Ethan’s name, it becomes ethanol. Interview with Ethan Fagen, ACE Fly-in Participant


2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

ACE Takes Ethanol Message to Friends and Foes

ace14-dc-alversonThere were over 25 battalions of ethanol troops on Capitol Hill this week to fight for the honor of biofuels, bringing the message to both friends and foes in Congress.

American Coalition for Ethanol president Ron Alverson, a South Dakota farmer and board member for Dakota Ethanol, says the teams had appointments with the offices of more than 130 senators and representatives, and he thought they were well received, even in enemy territory. “We went into what we thought were going to be some pretty hard places – representatives from Alabama, Pennsylvania, Rhode Island,” he said. “They were very cordial and they listened well … we were really pleased.”

ace14-dc-johannsWhen meeting with friends like Senator Mike Johanns (R-NE), the ethanol supporters delivered messages of gratitude and asked advice for approaching less friendly lawmakers. They also provided “ammunition” for allies in the form of the packets of the latest information to defend against some of the more popular arguments against ethanol, such as food versus fuel and engine issues with higher blends. “We’ve got some really good arguments and good data…all we can do is go out and tell our story,” said Alverson.

Listen to an interview with Alverson here: Interview with Ron Alverson, South Dakota farmer and American Coalition for Ethanol president


2014 ACE Biofuels Beltway March photo album

Coverage is sponsored in part by Patriot Renewable Fuels

API Runs Additional Biofuel Attack Ads

The American Petroleum Institute (API) will be running additional advertisements criticizing biofuels and the ethanol industry is once again fighting back.

“Once again, API has decided to perpetuate misinformation to protect their bottom line. They will do anything to protect their record profits and market share, even at the expense of consumer savings and a cleaner environment,” said Tom Buis, CEO of Growth Energy.

oil spill lake michigan“This recent series of ads are nothing more than fear mongering and misleading information. Time and again, the facts show that there is no substantial correlation between ethanol production and food prices,” continued Buis. “If Big Oil wants to point the finger at those who are driving up food prices, they should look no further than a mirror. In fact, a 2013 World Bank study has proven that crude oil prices are responsible for at least 50 percent of the increase in global food prices since 2004.”

Buis notes that marine and small engines are warrantied to use up to 10 percent ethanol and are not legally allowed to use E15 or other higher ethanol blends. He said the campaign has been designed to scare consumers, E15 is voluntary for use, and any suggestion that consumers are required to use E15 in small engines is completely misleading and false.

While the ads lay blame on the biofuels industry for additional environmental damage, Buis said that Big Oil a long history of ignoring environmental damage they are directly responsible for. “The sheer nerve to accuse biofuels of causing environmental harm on the 25th anniversary of the massive Exxon-Valdez spill, and the present-day oil slick off the coast of Texas, as well as another spill in Lake Michigan just yesterday, shows that Big Oil has a complete disconnect with reality and only cares about lining their pockets at the expense of the American consumer and our environment,” concluded Buis.