Domestic Fuel

2011 has been a challenging year for getting anything done in Washington DC, including as it relates to both agriculture and energy policy.

“In agriculture, when it comes to energy, we want reliable, economically competitive sources,” says GROWMARK government affairs director Chuck Spencer. “As a country, what we are looking for is energy security and that’s going to come from a mix of both domestic production and allies like Canada.”

When it comes to domestically-produced ethanol, Spencer says the expiration of the Volumetric Ethanol Excise Tax Credit (VEETC) at the end of this year provides new opportunities for the industry. “The domestic ethanol industry has been preparing for this moment for some time,” he said. “The energy table is rather large and there’s plenty of chairs at the table, particularly biofuels of all types. We’re going to see our fuel sources continue to diversify and in that diversity is going to come strength.”

Since the GROWMARK system is a cooperative that represents farmers throughout the Midwest and Ontario, Spencer says they are looking forward to the challenge of agriculture being able to supply more of our energy needs. “We’re all looking forward to more corn and soybean acres being planted. Farmers are responding to market signals to meet the demand for food products, renewable products, fiber and proteins for the livestock industry,” he said.

Spencer notes that the Renewable Fuels Standard is the corner stone of domestic renewable fuel policy and it should continue. “Considering that biodiesel is an advanced biofuel and ethanol can certainly become one as well, we have continued promise as far as our ability to produce renewable fuels and what that means to local economies,” he added.

Spencer also discusses what lies ahead in 2012 with the need to come up with a new Farm Bill during an election year with a huge federal deficit.
Listen to my conversation with Chuck Spencer here: Chuck Spencer Interview

The largest government purchase of biofuels for military application was announced today.

U.S. Navy Secretary Ray Mabus and U.S. Department of Agriculture Secretary Tom Vilsack jointly announced that the Defense Logistics Agency (DLA) signed a contract to purchase 450,000 gallons of advanced drop-in biofuel.

The biofuel to be purchased is made from a blend of non-food waste (used cooking oil) from the Louisiana-based Dynamic Fuels, LLC, a joint-venture of Tyson Foods, Inc., and Syntroleum Corporation, and algae, produced by Solazyme. The fuel will be used in the U.S. Navy’s demonstration of a Green Strike Group in the summer of 2012 during the Rim of the Pacific Exercise (RIMPAC), the world’s largest international maritime exercise.

“The Navy has always led the nation in transforming the way we use energy, not because it is popular, but because it makes us better war fighters,” stated Secretary Mabus. “This unprecedented fuel purchase demonstrates the Obama Administration’s commitment to seeking energy security and energy independence by diversifying our energy supply.”

The biofuel will be mixed with aviation gas or marine diesel fuel for use in the Green Strike Group demonstration.

Read more from USDA and listen to press conference of the announcement.

The Iowa Corn Caucus released its report card for presidential candidates today, giving grades for different policy areas related to agriculture, including energy and biofuels, and an overall grade for each candidate.

The highest overall grade went to Newt Gingrich, who scored straight As on every single policy issue. Second in the class was Rick Santorum, who received straight As on energy policies, but faltered under farm programs in the areas of crop insurance and conservation. President Obama received a grade of B, as did Mitt Romney, but the rest of the four major Republican candidates got no more than a C minus. Rick Perry received that grade, while Michelle Bachmann was close behind with a D+ and both Herman Cain and Ron Paul got Ds. Cain in particular failed miserably in the energy policy category and farm programs – getting straight Fs in all those areas. The energy category included three specific areas – Ethanol and Energy Policy Generally; Renewable Fuels Standard; and Ethanol Infrastructure.

“Our purpose wasn’t to endorse any candidate, but instead to give farmers a tool that they could take with them to the caucuses in January,” said Iowa Corn Growers senior policy advisor Amanda Taylor. The survey for candidates was developed in conjunction with the National Corn Growers Association (NCGA) to include ten questions directly related to agricultural issues.

ICGA president Kevin Ross noted that only half of candidates responded to the survey, so the Corn Caucus used other methods to determine the grades. “We tracked interviews, speeches, media quotes and all things related to agriculture, including voting records of candidates who held office,” he said. The candidates who did return the survey were Obama, Cain, Gingrich and Santorum.

Find out more about the Corn Caucus project results from the ICGA website, and listen to a press conference this morning about it here: Iowa Corn Caucus Results

The U.S. Department of Energy (DOE) is looking for a new location for Solar Decathlon 2013. DOE hopes to provide other communities with the opportunity to host the competition and share the economic and education and outreach benefits of the event.

Since 2002, the Solar Decathlon has been held on the National Mall in Washington, D.C., where it has successfully showcased energy-efficient housing and clean energy technologies. For Solar Decathlon 2013, DOE is seeking a new venue. The event will promote the outreach, education, and economic benefits of energy security, renewable energy, and energy efficiency.

The winners of Solar Decathlon 2011 were announced last month with the University of Maryland getting first place honors for its WaterShed entry that proposes solutions to water and energy shortages. Purdue University took second place in the competition, and New Zealand (Victoria University of Wellington) received the third-place award. The winner of the competition is the team that best blends affordability, consumer appeal, and design excellence with optimal energy production and maximum efficiency.

Appalachian State University won the Decathlon 2011 People’s Choice Award for its Solar Homestead entry – a self-sustaining net zero-energy house inspired by the pioneer spirit of the early settlers to the Blue Ridge Mountains. Appalachian State also won second place in the Communications Contest and third place in the Architecture Contest.

The Solar Decathlon’s influence has expanded around the work in recent years, with international teams from Belgium, Canada, China, and New Zealand that bring different perspectives and add to the debate about how to design sustainable homes.

The American Coalition for Ethanol (ACE) hosted a Farm Bill listening session with Senator Tim Johnson (D-SD) and area agricultural leaders last week at the ACE office in Sioux Falls.

“The farm bill plays a critical role in providing a safety net for America’s farmers and ranchers and has included important biofuel provisions in the past that we want to maintain,” said ACE Executive Vice President Brian Jennings.

In addition to Sen. Johnson and Jennings, participants who attended the event last Tuesday included Craig Schaunaman, USDA Farm Service Agency; Scott VanderWal, South Dakota Farm Bureau; Gary Duffy, South Dakota Corn Growers Association; Jeremy Freking, South Dakota Soybean Association; Kevin Kephart, South Dakota State University; Paul Brandt, South Dakota Pork Producers Council and Doug Sombke, South Dakota Farmers Union.

The U.S. Navy successfully concluded the largest demonstration of shipboard alternative fuel use last week when the Self Defense Test Ship (SDTS) arrived on November 17 at the Naval Surface Warfare Center Port Hueneme, Calif.

The SDTS is a decommissioned Spruance-class destroyer ex-Paul F. Foster (EDD 964) reconfigured to provide the Navy an at-sea, remotely controlled, engineering test and evaluation platform without the risk to personnel or operational assets.

The ship received approximately 20,000 gallons of a 50-50 blend of an algae-derived, hydro-processed algal oil and petroleum F-76 from the Defense Fuel Supply Point at Naval Base Point Loma on Nov. 16 and then traveled 17 hours to Port Hueneme on the fuel. According to the Navy, 100 percent of ship’s propulsion power and 50 percent of service power came from the algal oil/F-76 fuel blend.

“How can we have an impact?” asked Assistant Secretary of the Navy (Energy, Installations and Environment) Jackalyne Pfannenstiel at the demonstration’s kick-off. “We can have an impact as a technology leader, highlighting and demonstrating the viability of biofuels.”

Meeting the secretary of the Navy’s call for a drop-in fuel replacement, no changes were required to the infrastructure of the ship or fueling pier for the SDTS test. “From our perspective as the ship’s operators, there was absolutely no difference, whatsoever, in the operation or performance of the ship,” said Mike Wolfe, Naval Surface Warfare Center Port Hueneme Division underway project officer. “The fuel burned just like the traditional fuel we get from the Navy and have been burning for years. We could not tell the difference. The biggest success is that a Navy ship with engines identical to those in commissioned warships operated successfully on an overnight transit with the alternative fuel without a glitch in anything. Operationally, it was absolutely a success.”

The alternative fuels effort supports the Navy’s overall energy strategy to increase energy security and safeguard the environment.

The House Committee on Science, Space and Technology’s Subcommittee on Energy and Environment is holding a hearing today on “Conflicts and Unintended Consequences of Motor Fuel Standards” with a witness list that the ethanol industry claims is biased against biofuels.

“This is the second time this year that this subcommittee has held a hearing on ethanol without bothering to include a witness from the ethanol industry. A hearing whose witness list is comprised overwhelmingly of anti-ethanol critics can hardly be considered fair and balanced,” said Growth Energy CEO Tom Buis.

Since ethanol advocates were excluded from presenting testimony, the Advanced Ethanol Council (AEC) wrote a letter to subcommittee Chair Andy Harris(R-MD) and Ranking Member Brad Miller (D-NC) to re-emphasize the advanced ethanol industry’s commitment to the Renewable Fuel Standard (RFS) and efforts to grow the market for ethanol blended fuels.

AEC Executive Director Brooke Coleman wrote that the industry is concerned that the testifying witnessesmay not be “interested in discussing the true value of the federal RFS.”

“First and foremost, the federal RFS is the single-most effective policy ever enacted to reduce our dependence on foreign oil. It is the cornerstone of a bioenergy economy that emerged in rural America in stark contrast to economic trends in which our country lost incredible wealth to China and OPEC,” Coleman said, noting that advanced ethanol industry is currently engaged in developing commercial advanced ethanol biorefineries in several states from California to Kansas to Mississippi.

“Weakening or walking away from the RFS would greatly impede efforts to develop the next generation of biofuel technologies and further embed America’s dependence on foreign oil,” wrote Coleman.

Read the letter here.

The Iowa Secretary of Agriculture Bill Northey is asking Iowa fuel retailers and gas stations to submit nominations for his annual Renewable Fuels Marketing Awards, which recognize fuel retailers that have gone above and beyond in their efforts to sell renewable fuels. The Iowa Department of Agriculture awards are presented for both the marketing of ethanol and biodiesel.

“Fuel retailers continue to take steps to make ethanol and biodiesel more available to Iowa customers and this award is an opportunity to recognize those who have shown leadership in promoting these renewable fuels and making them more available to customers,” Northey said.

Qualifying entities will be those that market the renewable fuels they have available through creative efforts including, but not limited to: hosting special events highlighting their renewable fuels, development of creative signage, initiation of new advertisements or marketing efforts, and efforts dramatically increase renewable fuel availability.

The winners will be recognized during a meeting of the Petroleum Marketers & Convenience Stores of Iowa in Des Moines on January 10th. This is the fifth year for the award which was won last year by Kyle Krause of Kum & Go and Roger Baschke of Green Plains Energy Company.

Nominations must be submitted by January 1 and nomination forms can be found on the Iowa Department of Agriculture and Land Stewardship’s website.

Keynote speakers at the 17th Annual National Ethanol Conference will offer “Insider Perspectives on Election 2012 – The Presidency and Congress.”

Karl Rove will speak from the Republican perspective. Rove served as Senior Advisor to President George W. Bush from 2000–2007 and Deputy Chief of Staff from 2004–2007. He is known as “The Architect” of President Bush’s 2000 and 2004 campaigns.

From the Democrat angle, NEC participants will hear from Robert Gibbs, who has been an advisor and strategist to President Obama from the early days of Obama’s 2004 Senate race on to the White House. Most recently, Gibbs has served as President Obama’s Press Secretary.

Registration is now open for the Renewable Fuels Association National Ethanol Conference – Accelerating Industry Innovation. The conference will be held February 22-24 in Orlando, Florida at the Gaylord Palms Resort and Convention Center.

More information can be found on the conference website – NationalEthanolConference.com.

Members of the Open Fuel Standard Coalition joined with Representatives Eliot Engel (D-NY) and John Shimkus (R-IL) to call for consumer choice at the pump during an Energy Security Roundtable and media event in Washington DC on Tuesday

The two congressmen, pictured here with former National Security Advisor Robert McFarlane, outlined their Open Fuel Standard Act (HR 1687) which would set a deadline of 2017 for automakers to stop making cars that run on only gasoline. After than point, all American made cars must be either flex fuel (capable of burning gasoline, ethanol or methanol or any combination of these), or powered by natural gas, hydrogen, biodiesel, plug-in electric, or fuel cell.

“By employing the Open Fuel Standard, we can create competition for petroleum on the open market with other types of fuel. We don’t have to wait for the perfect technology,” said Rep. Engel (center).

“Consumers should have a choice when they pull up to a refueling station,” Rep. Shimkus (right) added. “At a minimal cost, vehicles could be able to accept multiple fuels with consumers choosing based on price or even feedstock for the fuel.”At a minimal cost, vehicles could be able to accept multiple fuels with consumers choosing based on price or even feedstock for the fuel.”

Also at the event were NASCAR driver Kenny Wallace and representatives from the Renewable Fuels Association, the Methanol Institute and ACT! For America.

Ethanol and other alternative fuel industry leaders will be on Capitol Hill Tuesday to urge Congress to an Open Fuel Standard (OFS).

Representatives John Shimkus (R-IL) and Elliot Engel (D-NY) introduced the Open Fuel Standard Act in June with the support of the Open Fuel Standard Coalition. Tuesday’s event in the nation’s capitol will include an Energy Security Roundtable and press conference.

“Americans need a choice at the pump and the Open Fuel Standard would allow them to pick an ethanol blend that meets their needs,” said Renewable Fuels Association President and CEO Bob Dinneen who will be a panelist at the roundtable. “The OFS would also create market space for other alternative fuels that are critical to our nation’s energy future.”

Dinneen will be joined by former National Security Advisor Robert McFarlane, NASCAR driver Kenny Wallace, and others who will discuss alternative fuels and the dangers of our addiction to imported oil for the event hosted by Reps. Shimkus and Engel, in 2218 Rayburn HOB from 2:00 – 3:00 p.m. Other participants will include Methanol Institute executive director Greg Dolan, and President and CEO of ACT! for America Brigitte Gabriel.

A coalition of nearly 50 trade groups and organizations representing renewable energy, energy efficiency, farm, and forest interests is urging leaders of the House Agriculture and Senate Agriculture Committees to include an energy title in any new Farm Bill legislation. A $23 billion reduction in funding has been proposed to the Joint Select Committee on Deficit Reduction by the committees for USDA programs, but no details have yet been decided.

In a letter to the leadership, the recently formed Agriculture Energy Coalition noted that programs in the Energy Title of the 2008 Farm Bill “have helped finance thousands of diverse renewable energy projects and improved energy efficiency at farms, ranches and businesses across rural America.”

“Agriculture has an indispensible role to play in our nation’s emerging clean energy economy. It is vital that we develop and commercialize a variety of clean, abundant, renewable energy resources and biobased products, and Farm Bill energy programs are crucial to achieving that goal,” said coalition co-director Lloyd Ritter.

Among the members of the coalition are the Renewable Fuels Association and Growth Energy.

The U.S. Navy took delivery of its first fully electric car this week, a brand new Chevy Volt.

“This vehicle will save 280 gallons of fuel per year,” said Deputy Assistant Secretary of the Navy for Energy Tom Hicks. “This builds to our goals the Secretary of the Navy has laid out for us to reduce our petroleum consumption by 50% by 2015.”

Hicks accepted and tested the Volt on the Navy’s behalf Thursday in Arlington, Virginia. He says the 50% petroleum reduction goal is on top of the 30% reduction the Navy has already made in the last six years.

An amendment offered by Sen. John McCain (R-AZ) that would have stopped funding for Flex Fuel blender pumps was pulled before it came up for a vote this week.

“While the withdrawal of this amendment is an important milestone, we will continue to encourage Congress to oppose any other effort that would erect new barriers to the market,” said Growth Energy CEO Tom Buis.

The amendment was proposed to the 2012 agriculture appropriations bill, which allocates $4.5 million for blender pumps by USDA. Meanwhile, the House has a similar version of the bill that would allocate only $2.3 million for USDA’s energy program with the provision that the funding not be used for pumps.

A bill introduced in the U.S. House of Representatives would mean additional testing for the use of 15% ethanol in regular gasoline.

Rep. Jim Sensenbrenner (R-WI) introduced the legislation to require the Environmental Protection Agency to seek independent scientific analysis on the effects of 15 percent blend ethanol gasoline.

Sensenbrenner says he has “serious concerns that the EPA used only one Department of Energy test and rushed E15’s introduction into the market place. This test was limited in scope and ignored a plethora of evidence— albeit inconvenient evidence for the EPA— that shows E15 gasoline has a negative effect on engines. I introduced this legislation to ensure a decision of this magnitude will be vetted by independent scientific research, rather than political expediency.”

EPA announced its decision in January to allow the use of E15 gasoline blend in newer vehicles manufactured since 2001, but the ruling has yet to be implemented.