Supreme Court Turns Down California LCFS Case

supreme-courtIn the flurry of decisions by the Supreme Court released the morning, justices declined to review California’s low-carbon fuel standard (LCFS) decision.

A federal trial judge ruled against the LCFS in 2011 but the Ninth U.S. Circuit Court of Appeals reversed that ruling last year and denied rehearing the case in January.

The Renewable Fuels Association (RFA) and Growth Energy issued a joint statement regarding the decision.

“We are extremely disappointed that the Supreme Court has declined to review the Ninth Circuit’s decision, despite the broad support for the petition – including 21 states. We will continue our efforts to protect the American biofuel industry and the national interest and will continue to ensure that all consumers have access to low-priced, American-made biofuels.”

The ethanol industry was joined in challenging the California law by the American Fuel & Petrochemical Manufacturers (AFPM). “The Supreme Court’s decision not to review this case is disappointing and leaves in place a state regulation that discriminates against fuels and other products produced outside of California,” said AFPM General Counsel Richard Moskowitz. “California’s efforts to dictate how fuel is produced outside of its borders ignores Constitutional safeguards that have long protected against one state controlling the conduct of private parties beyond their borders.”

Industry Highlights Flaws in CBO Report

In an update to a story posted last week regarding the new CBO report, “Renewable Fuel Standard: Issues for 2014 and Beyond,” more renewable energy industry representatives are speaking out regarding what they say are flaws in the report.

Tom Buis, CEO of Growth Energy said of the report, “This report looks at unrealistic scenarios and completely ignores the very goals of the Renewable Fuel Standard (RFS), which are to decrease our nation’s dangerous dependence on foreign oil, create jobs and spur economic growth and investment, and improve our environment, all while offering consumers a choice and savings at the pump. The CBO report simply shrugs off these critical policy goals contained in the RFS by noting that, ‘CBO did not account for that effect in this analysis.’

CBO 2014 RFS reportBuis also pointed out the ethanol is currently trading a dollar less than gasoline on the Chicago Board of Trade, which the CBO fails to acknowledge. The report also fails to consider, said Buis, the 40 year history of volatile gas prices and also ignores the effect the current turmoil in Iraq. However, Buis points out, increased domestic fuel production of fuels such as ethanol and a decrease on dependence of foreign oil would help provide stability and reduce the price hikes in gas prices at the pump.

“Clearly, this report is agenda driven and ignores the facts. Wild and statically unrealistic conclusions such as these show just how flawed the majority of this report is, and why it should not be taken with any level of seriousness,” added Buis. “It seems to me that the CBO got only one thing right in this assessment, and that is with regards to the production of ethanol from corn and how it has virtually no impact on the price of food. Yet, again it is flawed as it fails to highlight that the true driver of food costs is the price of oil.

The National Farmers Union (NFU) was also unhappy with the report and said that CBO’s claim that repealing the RFS would reduce gasoline prices is “simply false”. “The RFS has reduced consumer demand for oil, and the study fails to take that into account. It is unfortunate that CBO, which is supposed to be objective, released such a flawed study that does not take into account the reality of fuel markets,” said NFU Senior Vice President of Programs Chandler Goule.

“Study after study show that the RFS is saving consumers money. E85prices.com recently released data showing that consumers filling up with E85 can save an average of $0.61 less per gallon,” Goule continued. “The RFS is a successful policy tool that decreases our nation’s reliance on foreign oil, creates economic opportunities in rural America, and effectively decreases the greenhouse gas footprint of the transportation sector. CBO should have taken all of these benefits to consumers into consideration when performing the study.”

DF Cast: Finding Ways to Increase Ethanol Blends

While the ethanol industry awaits the Environmental Protection Agency’s decision on the amount of ethanol to be blended into the nation’s fuel supply, ethanol producers are looking at other ways to make sure the green fuel increases its blend amounts.

In this edition of the Domestic Fuel Cast, we hear from Growth Energy CEO Tom Buis, Dean Drake with the consulting company the Defour Group, Scott Zaremba, president of Zarco Incorporated, and Ken Parrent, the ethanol director for the Indiana Corn Marketing Council, as they give their thoughts on how consumer demand will be a bigger driver for higher ethanol blends after attending an Indiana Corn Growers Association ethanol forum that focused on marketing mid-level ethanol blends and ran following the recent 2014 Fuel Ethanol Workshop in Indianapolis.

Domestic Fuel Cast - Increasing Ethanol Blends

You can also subscribe to the DomesticFuel Cast here.

Biofuels and Wind Waiting on Action

Environmental Protection Agency administrator Gina McCarthy said earlier this year that they planned to issue a final rule on the proposed volume requirements under the Renewable Fuel Standard (RFS) in “late spring or early summer” but spring is gone and summer is here and there’s been no word yet.

grassley-headSenator Chuck Grassley (R-IA) said last week that he thought the decision was delayed now until fall. “The fact that they’ve delayed it is a little bit of good news,” he said during an interview on June 19. “The bad aspect of it is that it retards investment in ethanol … and it doesn’t just effect ethanol but biodiesel too.” Grassley said he really doesn’t know when the EPA will announce the final rule, although he does believe it will be better than the proposal released in November. “I don’t think they’ll be that bad, but whatever is less than present law is going to be bad anyway, maybe just less bad.”

Meanwhile, Grassley says the wind energy industry, which is huge in Iowa, is still waiting on Congressional action to extend tax credits. “As a father of the wind energy tax credit, I want to get it renewed,” he said. “It’s part of a package of 53 renewals that have to be passed by the Senate and it’s up to Reid when he brings it up … we don’t get any indication from him on it.” Grassley says he will continue to push to make that happen.

CBO Releases RFS Report

The Congressional Budget Office has released a new report, “Renewable Fuel Standard: Issues for 2014 and Beyond“. The evaluates how much the supply of various types of renewable fuels would have to increase over the next several years to comply with the CBO RFS report June 2014Renewable Fuel Standard (RFS). The U.S. Environmental Protection Agency (EPA) has yet to finalize its 2014 proposed rule, that if finalized based on initial numbers, would set the growth of biofuels backwards. The report also examines how other issues, such as fuel prices and emissions would vary by 2017, under three RFS scenarios:

  • The EISA volumes scenario, in which fuel suppliers would have to meet the total requirement for renewable fuels, the requirement for advanced biofuels, and the cap on corn ethanol that are stated in EISA for 2017—but not the requirement for cellulosic biofuels, because the capacity to produce enough of those fuels is unlikely to exist by 2017;
  • The 2014 volumes scenario, in which the EPA—which has some discretion to modify the mandates of EISA—would keep the RFS requirements for the next several years at the same amounts it has proposed for 2014; and
  • The repeal scenario, in which lawmakers would immediately abolish the RFS.

The report finds that food prices would be similar in all scenarios, including the dismantling of the RFS. However, the report finds that advanced biofuels must increase substantially to meet requirements, and that the increased use of all biofuels would increase the price of fuel at the pump.

In response to the report, Brooke Coleman, executive director of the Advanced Ethanol Council (AEC) noted that the report fails to take into account basic realities when it comes to assessing the program.

“Some reports are simply not worth reading, and this is one of them. You cannot assess the impacts of the RFS without looking at the benefits of reducing consumer demand for gasoline and diesel fuel,” said Caeclogooleman. “That’s the entire point of the RFS and the CBO simply states that ‘it did not account for that effect in this analysis.’ To put that omission in perspective, an oil economist recently concluded that the RFS saved motorists at least hundreds of billions of dollars in 2013 by adding the equivalent of an additional OPEC country to U.S. gasoline supplies during times of extreme tightness between supply and demand.”

“Whatever the savings are, an analysis of a foreign oil displacement program that does not look at the benefits of displacing foreign oil demand should be dismissed out of hand. The gas price claims are really strange as well,” continued Coleman. “A cornerstone assumption in the report has RFS-RIN prices so high that gasoline retailers could give renewable fuel blends away for free and still make a profit. Needless to say, this is never going to happen. CBO reports are supposed to be impartial and objective, and therefore informative.”

Coleman concluded, “This particular report appears to detail a fantasy world that does not inform the current debate.”

Don’t Turn Your Back on the RFS

With no end in sight on the turmoil in Iraq and oil prices and gas prices on the rise as a result, Americans United for Change (AUFC) have launched a new ad campaign encouraging the U.S. Environmental Protection Agency (EPA) to stay the course and not turn its back on the Renewable Fuel Standard (RFS).

‘Control’ will being airing on national cable stations including MSNBC, CNN and Fox News June 3, 2014 just head of the 4th of July weekend. The strategy is one designed to let people know that preserving the RFS and cheaper choices at the pump for Americans means more stability in gas prices even during times of turmoil in other countries.

The bottom line, says AUFC, now is not the time for the U.S. to slip further into dependency on foreign oil by discouraging ethanol and biodiesel production, which boosts our nation’s economy, rural communities, national security and environment.

Jeremy Funk, communications Director for Americans United for Change said of the new TV campaign, “If anything should give the EPA pause before deciding to roll back the Renewable Fuel Standard, it’s the bubbling turmoil in Iraq. While the escalating violence has yet to significantly disrupt oil production in the region, just speculation that it will has already sent oil prices on their way to a 6-year high heading into the 4th of July weekend.”

Funk continued, “Any time there is unrest in oil-producing regions overseas, it’s a recipe for jittery markets and inflated oil prices back home. It’s the price American consumers pay at the pump again and again living in a nation so reliant on foreign oil. It’s the reason why the nation can’t afford to scale back the RFS now and put all of our eggs in Big Oil’s basket. Big Oil says ‘don’t worry, we’re producing more domestic oil than ever’, but they don’t mention it only amounts to a third of what Americans consume each day. Big Oil doesn’t mention they’re actively trying to widen the domestic supply vs demand gap by spending millions of dollars campaigning to put out of business their cheaper, cleaner renewable fuels competition that accounts for 10 percent of the nation’s gas supply.”

Dismantling the RFS, says Funk, would take away what protection American consumers do have from supply shortages, market whims and Middle East instability. He also notes that not continuing forward with the RFS would undermine America’s national security by requiring more imports from regions whose policies and interests often clash with our own.

This TV ad follows on the heels of several others all focused on keeping the RFS in place including ‘The Kingdom’, ‘Bottom Line’, ‘Simple Choice’, and ‘Why Mess With Success’.

Ethanol Boat Races Ride Into Garnett

Love to race? Love to boat? Then consider attending the Garnett Ethanol Hydroplane Shootout in Garnett, Kansas July 12-13, 2014. The competition, sponsored by the National Boat Racing Association (NBRA, pits drivers of hydroplanes and roundabouts against each other. The race is sponsored by the Renewable Fuels Association (RFA), East Kansas Agri-Energy, and the Kansas Corn Commission. Admission is free and earplugs or noise reducing devices are suggested.

rfa-nbra-3The NBRA, host of the event and representing more than 250 drivers in 30 states, has a long history of using E10. They broke speed records on the high-octane ethanol blend. According to Vernon Barfield, tech chairman and vice president of the NBRA, he has had no issues using E10 in their more than 20 years of racing. He has also won more than 35 national championships.

“The Garnett Ethanol Hydroplane Shootout is a popular, family-friendly event where people of all ages can enjoy high-stakes action while learning about the environmental benefits and high-octane power boost of ethanol-blended fuel,” said Robert White, RFA’s director of market development. “There is a lot of misinformation out there about ethanol’s impact on boats, but E10 is safe and approved for use in all marine engines. The Lake Garnett event gives us an opportunity to educate boat owners and non-boat owners, and set the record straight.”

Jeff Oestmann, president and CEO of East Kansas Agri-Energy, touted the race as a unique opportunity to highlight the benefits of ethanol. He noted, “It is exciting to see a national organization select Garnett for this event. It allows us to further promote the benefits of ethanol, not only in marine engines, but in all engines. We are proud to be a sponsor, and look forward to the races.”

E10 (10 percent ethanol, 90 percent gasoline) is approved for use in marine engines, including two-stroke powered engines, motorboats, outboard motors, and inboard motors. However, E15 (15 percent ethanol) is not approved for use in marine engines. Boat owners should always follow the Ethanol Fuel With Pridemanufacturer’s recommendations, check the owner’s manual before filling their engine with fuel, and read labeling at the pump.

Popular names in boating have embraced the use of ethanol. The NBRA uses E10 in all two-stroke motor races. Additionally, respected names in marine motor manufacturing allow ethanol blended fuel in their engines, including Honda, Kawasaki, Mercury Marine, OMC (Johnson/Evinrude), Pleasurecraft, Tigershark (Artco), Tracker and Yamaha.

Greg Krissek, head of the Kansas Corn Commission, added, “The Garnett Ethanol Hydroplane Shootout is a great opportunity to spotlight Kansas agriculture and ethanol. We are excited to sponsor this year’s race and hope everyone will join us to cheer on the competitors.”

RFA staff will be on hand to answer questions and provide education on ethanol use in marine engines. Additionally, RFA’s “Fueled with Pride” logo will be displayed on uniforms, course buoys and flags, t-shirts sold at the races by NBRA, trophies, near refueling areas of all boats, and on signs placed throughout the viewing area.

Murphy USA Offering E15, E85 in Indianola, IA

Murphy USA is now offering E15 and E85 in Indianola, Iowa location. This station is the first one to begin selling the ethanol fuel blends in Iowa, with six more locations coming online over the next few months. By the end of the summer, E15 and E85 will be available at Murphy USA locations in Clinton, Davenport, Fort Dodge, Mason City, Newton, and Sioux City, Iowa. Murphy USA made a major announcement several months ago that it would begin offering E15 and higher level ethanol blends to consumers at its retail stations throughout the country.

logo-murphy-usa“We are very proud Murphy USA chose to expand its offerings of cleaner-burning ethanol blends in Iowa,” said Iowa Renewable Fuels Association (IRFA) Managing Director Lucy Norton. “There is strong collaboration in Iowa for servicing the E15 market, making it an ideal place to offer E15 at multiple locations. When the conversion is complete, motorists in seven large Iowa cities will have easy access to lower-cost, more locally-produced ethanol blends.”

In accordance with summertime fuel regulations, E15 will only be sold to flex-fuel vehicles throughout the summer driving season at Murphy USA locations. In mid-September, E15 will be available to all consumers driving 2001 and or newer vehicle. In addition, Iowa motorists will soon have greater access to biodiesel at Murphy USA’s Clinton, Davenport, Fort Dodge, Mason City, and Sioux City locations.

“We’re happy to see a major retailer like Murphy USA move their E15 and E85 efforts into Iowa,” added Renewable Fuels Association (RFA) Director of Market Development Robert White. “This should demonstrate to others that the business case for these fuels exists, and that more chains will follow Murphy USA’s lead.”

The Murphy USA Indianola fueling site is located at 1502 N. Jefferson Street. Of Murphy USA’s 1,200 stations in 23 states, the Indianola location will be the second Murphy USA station to offer E15, and the third Murphy USA station to offer E85. In addition to higher ethanol blends, Murphy USA’s Iowa locations will offer three grades of gasoline blended with 10 percent ethanol.

Iowa Sets New Record for First Quarter E85 Sales

Iowa flex-fuel drivers (FFVs) have set a new E85 record with the purchase of 2,707,231 gallons of E85 in the first quarter of 2014, according to data released by the Iowa Department of Revenue. The more than 2.7 million gallons of E85 sold is a new first quarter record, and nearly a 48 percent increase over the first quarter of 2013.

Flex Fuel Pump at Hy-Vee Mills Civic Parkway in Des Moines IA 6-16-14“As the EPA debates slashing 2014 requirements under the Renewable Fuel Standard (RFS), the cost-savings of ethanol-blended fuels continues to grow and Iowans are purchasing E85 at a record rate,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “When you follow-up a record year for E85 sales in 2013 with record E85 sales in the first quarter of 2014, it’s further proof that when given the choice, consumers will choose cleaner-burning, lower-cost ethanol blends.”

Yesterday, IRFA also reported the largest wholesale price spread between E85 and regular gasoline since it began tracking prices through its Weekly Iowa E85 Wholesale Price Listing Service. On Monday, June 23, the average price of regular 87-octane gasoline without ethanol was $3.23 per gallon at the Des Moines Terminal, according to OPIS. Meanwhile, Absolute Energy, an ethanol plant in St. Ansgar, Iowa, was selling E85 for $1.64 per gallon.

“At the wholesale level, E85 is being sold for nearly half the price of regular gasoline – that’s right, it’s nearly 50 percent cheaper,” added Shaw. “With Fourth of July travel just around the corner, it will literally pay for flex-fuel vehicle owners to find E85 along their route.”

Missouri Corn: Market Instability Reinforces Need for Ethanol

With the continued turmoil in Iraq causing instability in worldwide oil markets, Missouri Corn Growers Association (MCGA) is calling for increased ethanol access in the marketplace. Ethanol is trading more than a dollar lower than conventional gasoline according to the Chicago Mercantile Exchange.

The cost savings from blending competitively priced ethanol are being kept from consumers,” said MCGA CEO Gary Marshall. “To pay upwards of $3.50 or $4 per gallon when the top five 1205379-Moil companies profited a combined 93 billion dollars is unacceptable. Drivers are sick and tired of shelling out an arm and a leg for gas – and they have every right to be.”

Missouri drivers are currently using 10 percent ethanol (E10) in most gasoline sold across the state. Recently E15 (15 percent ethanol, 85 percent gasoline) was approved for use in the state in vehicles 2001 and newer. However, noted MCGA, the fuel blendstock provided by oil refineries during summer months limits blending higher than 10 percent ethanol, keeping customers from the price benefit of higher ethanol blends.

“The refusal by oil companies and refineries to provide a quality, cost-effective fuel when consumers are facing increasing costs at the pump is an outrage,” said Marshall. “Drivers could see immediate savings from E15, yet fuel marketers’ hands are tied until the summer regulation is lifted and winter blendstock is reintroduced this fall.”

While prices at the pump have reached their highest levels since 2008, they would be even higher without the inclusion of ethanol to the country’s fuel supply said MCGA. Last year alone, U.S. ethanol production displaced an amount of gasoline refined from 462 million barrels of imported crude oil, which is equivalent to that imported annually from Venezuela and Iraq combined.

“The latest energy issues in Iraq are a stark reminder why ethanol is important. As a country, we need to be looking at a long-term energy plan and not be held hostage any time militants take over a refinery in a foreign land,” concluded Marshall.

FFV’s, Ethanol Featured During FlexFuel Campaign

The second week of the Georgia Alternative Fuel Road Rally is underway as part of the FlexFuel Awareness Campaign, and one message of focus delivered by the ethanol and agriculture industries was that of the benefits of high level ethanol blends and flex fuel vehicles (FFvs). FFVs and ethanol blends are an option for private and government fleets, according to the Clean Fuels Foundation, one of the lead sponsors of the event. FFVs and ethanol can be very competitive among the family of legally defined alternative fuels.

Alternative Fuel Vehicle RoadshowDuring the Georgia events, Clean Fuels Executive Director Doug Durante gave a series of presentations and media interviews and took the opportunity to remind people that this is about clean air, consumer choice and energy independence. “With prices jumping once again as a result of instability in the middle east, we can fight back with domestic alternatives. In the case of flex fuels this is an easy, immediate choice we can make to take advantage of the 20 million FFVs in use by fleets and consumers,” said Durante.

The Alternative Fuel Road Show, now in its 4th year, is America’s largest clean fuel vehicle educational tour and is designed to reach fleet managers, civic leaders, and state legislators to help them make informed decisions about transitioning to clean, alternative transportation fuels. The 2014 Georgia Alternative Fuel Road Show kicked off at the Georgia International Convention Center in Atlanta with a media event and a workshop for fleet managers. The Show will roar through 8 cities in total in Georgia, all with media and workshop events.

Durante praised the efforts of the military to lead by example as the tour visited the massive Warner Robins Air Force base in Georgia which is aggressively using E85 on base. The FlexFuel vehicles are required to fill up on E85 and the staff has implemented several creative approaches to ensure they do so.

He also commended Georgia Public Service Commissioner Tim Echols who created the tour and attends every session. “Mr. Echols is equally supportive of natural gas and propane, electric vehicles, and E85 and is working to get more flex fuel pumps in the state. He drives a personal FFV running on E85 and is on a mission to reduce petroleum use in every way possible. We truly appreciate what he is doing for the state and the alternative fuels movement,” said Durante.

“As part of an ‘all of the above’ approach, this Road Show showcases all the alternative fuels, and they all have their strengths and advantages in a given situation. We are pleased to be part of this successful effort and make sure biofuels like ethanol are in the mix,” Durante concluded.

Durante also noted that many of the city and fleet managers they met with were very interested in getting a better understanding of the options that FlexFuel Vehicles provide, including being able to use any combination of gasoline ethanol blends.

Ethanol Safety Seminars Scheduled for Tennessee

Two Ethanol Safety Seminars will be taking place in Tennessee this June: June 25, 2014 at the Knoxville Civic Auditorium and Coliseum and June 27, 2014 at the Nashville Fire Academy. The seminars are designed for individuals who respond to ethanol-related emergencies as well as those who work at fixed-facilities and transport fuel. The free seminars RFA Ethanol Safety Seminarsare sponsored by the Renewable Fuels Association (RFA) and the Knoxville & Holston River Railroad and Nashville & Western Railroad.

Both seminars are free and feature a morning session from 9 a.m. to 2 p.m. and an evening session from 5:30 to 10 p.m. Registration is limited to the first 100 people per seminar. Lunch and dinner will be provided. Certificates from the Tennessee Fire Fighting Commission will be awarded to attendees at the completion of the course.

The goal of these seminars is for attendees to gain full ethanol emergency response training experience that they can immediately put to use in the field as well as pass along to other first response teams. A majority of this training is based on the “Training Guide to Ethanol Emergency Response,” a training package created by the Ethanol Emergency Response Coalition (EERC) that has been distributed throughout the United States and to several countries worldwide.

“We cannot take our industry’s impressive safety record with hazardous materials for granted,” said Scott Ogle, general manager of Knoxville & Holston River Railroad. “Ethanol Safety Seminars provide emergency responders with the training they need to keep their guards up and American communities safe.”

Attendees will receive in-depth information on proper training techniques that first responders and hazmat personnel need to effectively respond to an ethanol-related emergency. While primarily targeting first responders, hazmat teams, safety managers, and local emergency planning committees, it is also open to the general public.

“Ethanol Safety Seminars allow the emergency response community to maintain a level of preparedness that guarantees that the cities and towns they serve receive swift and capable responses to ethanol-related incidents,” said Kristy Moore, RFA vice president of technical services. She also noted that other Safety Seminars will be taking place in other locations this summer.

E85 Found for $1.39 Less Than Gas In Iowa

For several months, the Iowa Renewable Fuels Association (IRFA) has been tracking wholesale E85 prices in Iowa and this week found the largest price differential since they began the E85 Price Listing Service: $1.39 per gallon less than gasoline wholesale.

Kum and Go E85 station in Stuart, IA on June 16, 2014. Price: $2.74 per gallon. Photo; Joanna Schroeder

Kum and Go E85 station in Stuart, IA on June 16, 2014. Price: $2.74 per gallon. Photo: Joanna Schroeder

On Monday, June 16, the average price of regular 87-octane gasoline without ethanol was $3.18 per gallon at the Des Moines Terminal, according to OPIS. Meanwhile, Absolute Energy, an ethanol plant in St. Ansgar, Iowa, was selling E85 for $1.79 per gallon.

“E85 is currently being sold in wholesale markets across Iowa at more than a $1.00 per gallon discount to regular gasoline, and that’s serious savings for Iowa families,” said IRFA Executive Director Monte Shaw. “With the Summer driving season in full swing and uncertainty in the Middle East keeping oil prices elevated, using ethanol is not only helping to support the state’s economy and energy security, it’s also providing Iowa families with a much needed price break at the pump.”

E85 is a fuel blend containing between 70 and 85 percent ethanol. E85 is currently sold at more than 200 fueling sites in Iowa, and can be used in all flex-fuel vehicles (FFV). Click here to see a list of all the E85 stations in Iowa. To determine if your vehicle can use E85, please check your owner’s manual, the vehicle’s fuel cap, or click here for a list of FFVs.

Ethanol Production Hits Record High

eiaU.S. ethanol production has hit a record high. This story from Reuters says it was the the sixth week in a row production rose for ethanol, which was helped by rising gasoline prices.

Ethanol production surged 28,000 barrels per day, or about 3 percent, to an average of 972,000 bpd in the week ending June 13, according to the U.S. Energy Information Administration. Production surpassed the previous record of 963,000 bpd reached in the last week of 2011.

Despite the higher output, strong demand squeezed stocks of ethanol, which fell 572,000 barrels to 17.85 million barrels, a three-week low.

Makers of the biofuel are earning near-record profits as prices for corn, the main feedstock used in ethanol production, hovered near a four-month low.

The story goes on to say that gasoline futures have a $1-per-gallon premium over ethanol futures that makes ethanol good for fuel blenders.

American Drivers Can Save 61 Cents Choosing E85

E85 price at Kum and Go in Adel Iowa on June 16 2014

E85 price at Kum & Go in Adel, Iowa on June 16, 2014. Photo Credit: Joanna Schroeder

Fuels America wants Americans to know that as turmoil in Iraq pushes gas prices up, ethanol can save them money. In an analysis of data covering the past year from E85prices.com shows that drivers with “Flex Fuel” vehicles in the U.S. can pay an average of $0.61 less per gallon by filling up with E85, which contains up to 85 percent American ethanol.

The association notes that ethanol is a higher octane fuel that improves engine performance, and that’s why it has been added to gasoline for decades. Today it is now being blended at higher levels into the fuels used throughout professional auto racing. Prices for American-grown renewable fuels like ethanol and advanced biofuels have grown increasingly competitive thanks to America’s Renewable Fuel Standard (RFS), which ensures that homegrown renewable fuels are available as an option to American consumers. In addition to saving American drivers money, the RFS has helped to support 852,000 jobs and $184.5 billion in economic output in the U.S.

The analysis of data from “E85 Prices” also revealed that drivers nationwide have at times saved as much as $0.76 per gallon at the pump over the past year by filling up on E85. And because ethanol increases the available fuel supply, it helps to drive down the price of gasoline for all drivers regardless of whether they choose a higher blend fuel like E15 or E85.

Meanwhile, violenFuels America Digital RFS adce in Iraq is driving high gas prices even higher than predicted. Fuels America notes that mere worries about oil supply issues have already helped drive world and U.S. prices to their highest levels since September. Americans could see prices for regular gasoline jump more than $0.20 per gallon over the next couple weeks as violence in Iraq continues.

Fuels America’s announcement coincides with a paid advertising campaign to highlight the consumer savings the RFS and the renewable fuels industry deliver for Americans. This week, the coalition is running digital ads that ask Americans why we should “let Big Oil pump us dry,” and call on our leaders to “invest in affordable, homegrown renewable fuels” by protecting America’s Renewable Fuel Standard.