Domestic Fuel

The American Fuel and Petroleum Manufacturers Association (AFPM) had compared the recent New Hamsphire Methyl tert-butyl ether (MTBE) lawsuit loss by the oil industry to E15. MTBE  has been found to contaminate ground water and as a result nearly half the states in the U.S. have banned its use. E15, the most test fuel in the history of the country has never been shown to contaminate ground water and is a more environmental friendly option.

Bob Dinneen, CEO and president of the Renewable Fuels Association (RFA), called the statement “reckless” and “revisionist”. “AFPM and the oil companies are living in a fantasy parallel universe if they think they can revise history to tarnish E15 and the RFS.  MTBE did not go through the same 211F waiver process that E15 did.  MTBE did not undergo six million miles of testing like E15 did.  The oil companies pushed 15 percent MTBE approval under a much less rigorous waiver process that did not require the robust emissions and drivability testing that E15 has successfully completed.”

“Oil companies also did not conduct extensive 211(b) health effects testing prior to the registration of MTBE for commercial use,” continued Dinneen.  “Oil companies chose MTBE over biodegradable ethanol because it was a product they produced and it increased their profits.  In fact, they used MTBE to keep ethanol out of the market because the two fuels could not be used together. Unfortunately, MTBE was not compatible with the fuel distribution system. It leaked from tanks and quickly migrated to drinking water supplies.  MTBE is toxic.  Oil companies losing the court case in New Hampshire screams a dire warning that oil companies should not be trusted with our energy future.  Oil companies have a disturbing track record of putting their monopoly ahead of innovation and progress, and their profits ahead of consumer pocketbooks.”

Tom Buis, CEO of Growth Energy called the statement “absurd” and noted that in terms of the New Hampshire lawsuit, AFPM, refiners and oil companies refused to use cleaner-burning, biodegradable ethanol, and instead chose to use an oil-derived alternative that ended up contaminating water systems throughout the U.S., and is also suspected of having carcinogenic properties.

“This is just another example of the length the refiners will go to avoid using renewable fuels,” said Buis. “They chose MTBE over ethanol until it polluted water systems because of leaks – and switched to ethanol after states and local communities started banning its use. The only consistency among the oil companies and its affiliates like AFPM is that they will say and do anything to block market access for biofuels to protect their near monopoly on the liquid fuel system, as well as their bottom line – even if it is at the expense of their customers.”

“In a wild stretch of the imagination that ignores reality and facts, AFPM are trying to say the most tested fuel ever in American history, which is cleaner and biodegradable, will have the same negative effects as a toxic additive produced by AFPM. Give me a break. Big Oil – why don’t you tell the American people just what is in the oil spilling in communities across America, such as the Yellowstone river, the Mississippi river, Kalamazoo, Mayflower Arkansas and all over the Gulf of Mexico? I can tell you one thing – it isn’t environmentally safe, biodegradable ethanol,” concluded Buis.

Following the House Committee on Science, Space and Technology’s mark up and ultimate approval of H. 875, legislation designed to untimely repeal approval of E15 that was introduced by Rep. Jim Sensenbrenner.

“The House Science Committee is ignoring hard data and facts that show E15 is reliable and the most tested fuel to date,” said Tom Buis, CEO of Growth Energy. “It is ironic that many members of the Committee chose to ignore the science, kick the can down the road and keep our nation addicted to foreign oil. Clearly this legislation does nothing to increase our energy security or independence; rather it only provides additional roadblocks and legislative hurdles for homegrown American energy from entering the commercial marketplace.

Buis continued, “H. 875 is a legislative tactic to delay, and ultimately repeal approval of E15. This is truly unfortunate as E15 is the most tested fuel to date and all the ethanol industry is asking for is the chance to compete in a free marketplace, where market share is not blocked and consumers and retailers have the opportunity to make the voluntary choice of the fuel they wish to use. However oil companies, refiners and special interests know that once higher blends of biofuels become available, consumers will line up to get a cleaner, higher performing, better fuel that is made in America instead of paying more to continue our reliance on foreign oil.”

Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), added, “This legislation is a tribute to stubbornness. Congressman Sensenbrenner refuses to acknowledge that E15 is a thoroughly tested and approved fuel option that gives consumers a cost-saving, environment-enhancing, domestic renewable choice at the pump. E15 has been test driven the equivalent of 4,700 round trips from Washington, D.C. to Milwaukee. If he doesn’t want to use it, fine, but American drivers have a right to choose. Stop throwing bad paid-for ‘science’ and scary warnings around in the name of oil monopoly protectionism.”

The latest World Agricultural Supply and Demand Estimate released this week increased 2012-13 year-ending corn stocks and corn use for ethanol.

Domestic corn use for 2012/13 is projected 100 million bushels lower as a 50-million-bushel increase in corn used to produce ethanol partly offsets the lower projection for feed and residual disappearance. Larger-than-expected March
1 corn supplies, lower corn prices, and favorable margins for producing and blending ethanol limit the expected year-to-year decline in ethanol production during the second half of the marketing year (March-August).

The report also projects higher world corn production, increasing 1.5 million tons for Brazil, 1.4 million tons for Europe with upward revisions to production in Spain, Hungary, and Poland and a bit more for Russia on the final government estimate.

This afternoon, Reps. Bob Goodlatte (R-VA), Jim Costa (D-CA), Steve Womack (R-AR), and Peter Welch (D-VT) released the RFS Reform Act in the U.S. House of Representatives. During a press conference to “unveil:” the bill Goodlatte said, “The RFS debate is no longer just a debate about fuel or food. It is also a debate about jobs, small business, and economic growth. The federal government’s creation of an artificial market for the ethanol industry has quite frankly triggered a domino effect that is hurting American consumers, energy producers, livestock producers, food manufacturers, and retailers. The broad coalition of organizations supporting this legislation echo the same sentiment: the RFS is not working.”

The representatives say that the RFS is causing food prices to go up, and has not provided relief for consumers at the pump.  In fact, they say, citing the RFS, the EPA is setting the target for refiners to blend cellulosic biofuels into gasoline higher than the amount of cellulosic biofuels that exists. When these non-existent fuels cannot be blended refiners are financially penalized, which ultimately gets passed on to consumers at the pump.

Goodlatte added, “The RFS Reform Act will eliminate corn-based ethanol requirements, cap the amount of ethanol that can be blended into conventional gasoline at 10 percent, and require the EPA to set cellulosic biofuels levels at production levels. Renewable fuels play an important role in our energy policy but should compete fairly in the marketplace. This legislation will bring the fundamental reform this unworkable federal policy needs now.”

The RFS Reform Act is supported by a diverse group of more than 40 organizations.

The renewable fuels industry is aghast at the bill saying it would impede the progress of the renewable fuels industry and takes the choice out of the hands of consumers,  all while protecting the virtual monopoly that oil companies have over America’s transportation fuels.
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Growth Energy and its members are heading to Capitol Hill today to meet with legislators regarding the benefits of the ethanol industry. In particular, participants will discuss the value of E15, the Renewable Fuel Standard (RFS) and the issues surrounding Renewable Identification Numbers (RINs). This morning, the Growth Energy leadership team, CEO Tom Buis, and Co-Chairmen of the Board General (Ret.) Wesley Clark and Jeff Broin (POET) held a brief press call to discuss their efforts on the hill.

During the call, Jeff Broin explained that the RFS guarantees market access to renewable fuels because the volume of ethanol in the market is controlled by the competition, the oil industry. Today, the 10 percent goal that has been created by all the laws (10 percent of all fuel blended in the U.S. contains ethanol) but the potential is much larger. Broin said the country could be at 30 percent of the fuel by 2022 if we meet the RFS goals.

Broin noted that the oil industry has done everything it can to bar market access for E15 from erecting legal and regulatory challenges to a very expensive PR campaign with misinformation. But for the RFS to be successful, the blend wall must be scaled and this can be done by allowing consumer choice at the pump with E15.

General Clark noted that the RFS is the most successful energy policy the U.S. has seen in 40 years. It’s working. But people, such as the oil industry, food industry and the poultry industry would like consumers to believe this is not the case.

“When you open market access,” said Clark, “the market will sort itself out if given the chance. “But when you’re dealing in the fuels business you’re going against the greatest economic force on the planet, which is the petroleum industry. And they’re doing everything in their power, including working through non-governmental organizations, some governments, warning them,imploring them not to move away from their exclusive reliance on petroleum. It just shouldn’t be.”

“So the RFS is the lead effort in the move to break the monopolistic grip of the petroleum industry on liquid fuels. And we’re right now with the RFS where we’re really getting traction,” Clark concluded.

Listen to the press conference here:Growth Energy Heads to the Hill

Fresno, California is the home of the latest retail station offering E85 and biodiesel. Located at  4994 E. Ashlan Avenue, the Propel “Clean Mobility Station” will receive its biodiesel from Community Fuels in Stockton, CA and ethanol from Calgren Renewable Fuels in Pixley, CA.

Community Fuels produces high quality biodiesel at the company’s 13 million gallons per year bio-refinery at the Port of Stockton which has been in continuous operation since 2008. Opened in 2009, Calgren’s 55 million gallon per year ethanol plant is one of the most efficient operations and lowest carbon footprint facilities in the country.

“Propel’s new station in Fresno makes it easier than ever for our fuels to reach local drivers,” said Lyle Schlyer, President of Calgren. “As Propel expands their network of stations in the area, we look forward to growing our partnership with Propel so more Central Valley drivers have convenient access to high quality, American made fuels like ours.”

According to Matt Horton, CEO or Propel, the new station model rethinks the traditional gas station, providing a highly visible platform to introduce the renewable fuels to a mainstream driver base alongside conventional fuel options.

“Rapid swings in fuel prices are a constant reminder of our need to increase choice and competition in the fuel market,” said Horton. “And as more consumers embrace local, renewable fuels and seek cleaner means of transportation, Propel Clean Mobility Centers will help make progress toward our country’s most pressing economic and environmental issues.”

Clean Mobility Centers utilize green design and sustainability practices that promote cleaner transportation in the communities they serve. Each station has free air stations for tires to increase vehicle miles per gallon (MPG), education centers offering information on local public transit, innovative bicycle tuning centers, recycling stations at the pump, and in the future, emerging fueling types such as natural gas and electric vehicle charging.

“Until now, Fresno’s drivers have not had the option of filling up with renewable fuels like E85 and biodiesel,” added Ashley Swearengin, Mayor of Fresno. “Our community welcomes these new choices at the pump and our city is pleased to play a role in supporting local manufacturing.”

The Iowa Renewable Fuels Association (IRFA) has submitted a letter responding to the House Energy and Commerce Committee’s request for stakeholder comment on the Committee’s white paper regarding the so-called blend wall.

IRFA Policy Director Grant Menke stated, “Our stakeholder comments focused on three main points. First, there is no valid E10 blend wall. The blend wall vanished as soon as EPA approved E15—in the most extensive testing of any fuel in history—for 2001 and newer vehicles. 

Second, the oil industry has taken specific actions and inactions to attempt to build a bogus blend wall, brick by brick, to undercut the RFS and protect its virtual monopoly over the transportation fuel marketplace. We detail these deliberate Big Oil obstruction efforts in our comments and explain how these ‘bogus blend wall bricks’ could be removed immediately by the oil companies if they chose to do so. 

Third, the RFS is working and must be preserved. To gut the RFS would preserve the oil monopoly, reward the bad actors who have spent years undermining the RFS instead of preparing for it, and deprive consumers of more choices at the pump—choices that are cleaner, cheaper and homegrown. The fundamental intent of the RFS was to crack the petroleum monopoly, and it is on the verge of doing so if Congress allows it to keep working.”

Click here to read IRFA’s full comments.

Retail and wholesale distributors of fuels who are interested in installing new equipment to offer consumers more choice at the pump – higher blends of ethanol and biodiesel – can apply for financial assistance through the Iowa Renewable Fuels Infrastructure Program. Applications must be received by April 30, 2013 and will be considered at the May 14th meeting of the Iowa Renewable Fuels Infrastructure Board, who approves all applications.

“Iowa is the national leader in production of ethanol and biodiesel and this program is designed to help make sure customers have access to these clean, homegrown renewable energy choices,” said Iowa Secretary of Agriculture Bill Northey. “This program demonstrates the long-term commitment by Iowa to renewable fuels and I encourage both large and small fuel retailers to consider applying for assistance.”

The program has cost-share funds available to cover up to 70 percent of the cost of converting old equipment, such as underground tanks or retail pumps, to new equipment designed to handle higher blends of ethanol and biodiesel. Grants to retail distributors are limited to a maximum of $50,000 per project and retailers must commit to selling renewable fuels for at least five years. Smaller grants of $30,000 are available for those only making a three year commitment.

Wholesale fuel distributors are also eligible for grants to offset the cost of new bulk storage and distribution equipment that can be used with higher blends of renewable fuels. Up to $100,000 is available, but requires a 50 percent match by company and a five-year commitment to handling renewable fuels.

The Iowa Legislature provided $3 million to the program for fiscal 2013 and nearly $1 million remains for this final application period. Funds not awarded this year can be carried into the next fiscal year. More information about the program, including guidelines and applications form are available here. In addition, the Iowa Renewable Fuels Association is also able to assist those interested selling higher blends of ethanol and biodiesel.

The renewable fuels industry is responding to the U.S. Environmental Protection Agency’s (EPA) notice of proposed rulemaking regarding 2013 Renewable Fuel Standard (RFS) required volumes. EPA proposes to set ethanol gallons at 14 million but where the real debate has lain is around the requirement for cellulosic gallons.

The Renewable Fuel Association (RFA) submitted comments with four key points:

1. EPA should revise its proposed 2013 cellulosic biofuel standard to better correspond with current expectations of actual 2013 cellulosic biofuel production volumes.

2. EPA should partially reduce the 2013 advanced biofuel standard, as sugarcane ethanol imports are unlikely to be available in sufficient volumes to meet the requirement.

3. Because there are legal and economical options available for surmounting the “blend wall”, the E10 saturation point should not be a factor in EPA’s decision-making process for 2013 RVO levels.

4. EPA should propose 2014 RFS standards as expeditiously as possible and ensure the 2014 RVOs are established no later than Nov. 30, 2013.

“To ensure the RFS continues to be implemented in the most effective way,” said Bob Dinneen, RFA CEO & president,
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In the past month, residents of Baxter, Iowa have driven the equivalent of more than two trips around the world on 15% ethanol fuel (E15).

The Iowa Renewable Fuels Association (IRFA) today reported that statistic since Baxter fuel retailer Kountry Korner began offering E15 as a registered fuel for 2001 and newer vehicles on March 8, 2013.

“Since offering E15 as a registered fuel, I’ve seen more and more use of the fuel every day,” stated Kountry Korner Owner Bryan DeJong. “E15 has brought in many new customers to my store who are in search of lower-cost, more homegrown fueling options. The consumer response to the fuel has been very positive and I anticipate our E15 sales to continue to grow in the coming weeks.”

“E15 has been priced at an average of almost 20 cents cheaper than regular gasoline and the response in Baxter has been quite positive,” said IRFA Managing Director Lucy Norton. “Retailers around the state should take notice that there is a real demand for cleaner, more homegrown E15, and consumers wishing to have access to this less expensive option should ask their local fuel retailers to offer E15.”

IRFA notes that retailers interested in installing a blender pump to offer E15, E85, and other ethanol blends can apply for a grant from the Iowa Department of Agriculture.

In case you are wondering – assuming 20 miles per gallon fuel economy and about 49,800 miles around the world twice – that’s approximately 2500 gallons of E15 for the little town of Baxter (pop. 1,093) in 30 days.

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

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

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

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

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

A podcast we’ve talked about on our sister website, AgWired.com is the AgFanatics … AgriVisor Account Manager Cory Winstead and AgriVisor Risk Management Specialist Nick Klump, who talk ag issues on a regular basis. No surprise that ethanol and Renewable Identification Numbers (RINs) made it onto their radar, as it is a topic pretty important in ag circles.

In this episode of the AgFanatics podcast, the guys try to bring a little more knowledge to the the discussion of about of ethanol production and blending. Recently, they talked to Tim Abel, GROWMARKS Refined Fuels Supply and Trading Manager to clear up some of the issues on the topic.

Check ‘em out!

The Canadian Renewable Fuels Association welcomed this week’s launch of that country’s agriculture policy. The Growing Forward 2 (GF2) policy framework was unveiled this week, and CRFA sees it as good for Canada’s renewable fuels industry and the farmers who grow the feedstocks for biofuels:

Today, CRFA members are producing clean-burning renewable fuels across the country. This success is a testament to our Canadian farmers as well as government initiatives to promote economic growth and prosperity, like the federal Renewable Fuels Regulations, the NextGen for Biofuels Fund, and most recently, GF2.

“Farmers across the country are clear winners with increased production and promotion of domestic renewable fuels” said CRFA President W. Scott Thurlow. “Canada’s renewable fuels sector creates jobs and is helping grow the economy in rural Canada. Now, our members are taking the platform created by ethanol and biodiesel technology and using it to develop fuels, and value-added agricultural and chemical products, from a growing range of biomass. Programs like GF2 will help build-out this innovation so that the economic and business risk management benefits of domestic renewable fuels production will accrue for our farmers today and well into the future.”

GF2 is a five-year, $3 billion dollar investment by federal, provincial and territorial (FPT) governments for government agricultural programs and services.

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

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

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

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

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

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

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

Register here.