Needed Now: Farm Bill with Energy Funding

For two years the Senate has passed its version of a farm bill. Last year the House did not and later this week is set to debate its version of the bill. During this process, the current farm bill was extended but ag, energy and other groups are at a full court press to get a bill passed before the legislators break for summer vacation.

I sat down with Tom Buis, CEO of Growth Energy recently who is a Washington insider and FEW13-growthenergy-buishas been working on behalf of the agricultural industry and now the biofuels industry for many years to learn more about the current farm bill, or lack thereof.

Buis explained that the 2008 Farm Bill was the first ever with an energy title, all designed to help investment into next generation biofuels. This year, the Senate extended the program and funded it and those are two critical programs said Buis. If a new bill isn’t passed, the extension will expire on September 30, 2013 and with it all the energy programs.

He continued, what the House does is only authorize the programs but don’t put in any money in the bill. “It’s a good press release but it doesn’t mean anything. And the battle will probably end up like that if and when it gets through the House they won’t have any funding for the programs and restrictions on whether or not USDA can fund development under the REAP program, flex pumps in rural communities. They’ll probably have a prohibition which the Senate does not and will have it work in out in conference.”

Tom along with his members have been extremely active in defending ethanol on the Hill and will continue to do so. Realizing that they need more boots on the ground, several years ago Growth Energy launched its “Growth Force” where anyone from around the world can sign up to support biofuels. Now the association is taking it one more step, and individuals from around the country can become members of Growth Energy.

During our sit down, Buis also discussed several other current issues including market access and the ongoing debate over the Renewable Fuel Standard (RFS). Listen to my interview with Tom here: Needed Now: Farm Bill with Energy Funding

Visit the 2013 FEW Photo Album.

American Ethanol up for Michigan NASCAR Race

American Ethanol will be on center stage at the Michigan NASCAR race this weekend including driver Austin Dillon behind the wheel of the #33 car in a cool black and green ethanol paintout.

american-ethanol-paintDillon says the use of 15% ethanol blended fuel as a clean burning alternative has had great benefits for NASCAR racing. “If you look back on our history on performance and see how clean our engines burn, it’s been an easy transition from our old fuel to American ethanol,” he says. “Our engines run great and create horsepower each and every race and you don’t have a fuel problem as far as running out of fuel and you can still run the long runs over a long period of time.”

Dillon also uses ethanol in his everyday car because he believes it is helping to create a better, greener future for future generations. “The fuel speaks for itself, the way that it’s enabling us to have cleaner burning fuel,” he said. “To be able to go out and really perform well and still have a fuel that burns clean is awesome. I want my kids to be able to enjoy the same things that I have been able to enjoy with our country and I feel like moving to a green initiative like American ethanol is important for everyone.”

As the grandson of racing legend Richard Childress, Dillon and his family have been involved in the racing business for generations and he says having American Ethanol as a sponsor has opened their eyes to the benefits of ethanol to the environment for the future.

The Sprint Cup series race will begin at 1:00 pm Eastern time on Sunday. American Ethanol partners include Growth Energy, National Corn Growers Association, and New Holland.

Association Roundtable: Mid-Year Ethanol Policy Update

This year’s general session during the Fuel Ethanol Workshop diverged from past years. Rather than have a keynote speaker, the three leaders of the country’s largest ethanol associations came together on one stage to discuss current U.S. ethanol policy. The Association Roundtable: Mid-Year U.S. Ethanol Policy Update, panel was moderated by Tom Bryan, president of BBI International and FEW13-Association-Roundtablefeatured Bob Dinneen, CEO and president of the Renewable Fuels Group (RFA), Tom Buis, CEO of Growth Energy and Brian Jennings, executive vice president of the American Coalition for Ethanol (ACE).

The discussions ranged from market access and how Big Oil is trying to block higher blends of ethanol, such as E15 and E85 from being sold to consumers, RINs, the ongoing debate over the Renewable Fuel Standard (RFS) and the recent three white papers that were released for comment and the status of a farm bill. Interestingly, all three ethanol advocates, who are also Washington insiders, noted that all of the current issues and debates have been fueled by Big Oil.

The panel was informative, entertaining and at some points downright uncomfortable but Buis, Dinneen and Jennings all agreed that although there is a battle, they are confident ethanol will win. The groups’ final call: each and every person needs to be involved in the fight.

Listen to the full panel discussion here: Association Roundtable: Mid-Year Ethanol Policy Update

Visit the 2013 FEW Photo Album.

Senate Passes Farm Bill with Energy Funding

senateBy a vote of 66 to 27 on Monday evening, the full Senate passed its version of a 2013 Farm Bill which includes mandatory funding for renewable energy programs.

“Specifically, the $900 million in mandatory funding to critical rural energy programs will help provide the certainty investors and businesses need to keep making renewable fuels from diverse feedstocks, from corn stover to woody biomass to municipal solid waste,” said Growth Energy CEO Tom Buis. “By including programs such as the Rural Energy for America Program (REAP), the Biomass Crop Assistance Program, and the Biorefinery Assistance Program, the Senate has reiterated its vote of confidence in our nation’s renewable fuels sector.”

“REAP provides vital cost-share assistance to help petroleum marketers make upgrades or install new equipment at retail stations, ensuring consumers have access to renewable and affordable fuels such as ethanol,” said Brian Jennings, Executive Vice President for the American Coalition for Ethanol (ACE). “Today’s vote highlights strong bipartisan support for market access to E15 and midlevel blends, such as E30 and E85.”

“Farm Bill renewable energy and energy efficiency programs have a solid track record in supporting growth in agriculture, manufacturing, and new employment opportunities in rural America,” Agriculture Energy Coalition co-director Lloyd Ritter added. “We urge the House of Representatives to include the same funding of Farm Bill energy programs in its version of the legislation.”

“We believe, the House like the Senate, will also recognize the job-creating, value-added economic engine that the ethanol industry has become. In 2012, the ethanol producers across this country supported over 300,000 jobs,” said Renewable Fuels Association president and CEo Bob Dinneen. “As the House begins its deliberations, we encourage them to keep the larger goals of energy independence and rural economic revitalization in mind.”

The full House is expected to take up its version of a farm bill next week.

World Bank: Crude Oil Biggest Driver of Food Prices

According to a recent study by the World Bank, “Long-Term Drivers of Food Prices,” oil prices are the biggest driver of higher food prices. The study, using data from 1960-2012, applied an economic model to five internationally-traded food commodities (maize/corn, wheat, rice, soybeans and palm oil) and studied the impact of several food-price drivers. These included energy prices, exchange rates, interest rates, inflation, income and a variable reflecting World Food Bank Food Price Studymarket fundamentals.

The study also paid special attention to two time periods: 1997-2004 and 2005-2007. Between the two time frames, the price of energy, fertilizers and precious metals tripled. In addition, most food prices doubled. Of all the drivers of food prices, crude oil prices had the biggest impact.

Tom Buis, CEO of Growth Energy noted that also during this time, food and energy price increases also coincided with record profits for the oil industry.

“Not only has the oil industry been responsible for the sky-rocketing gas prices each time you fill up your car, now it turns out they are responsible for the price increases you face at the grocery store. While they enjoy record profits, populations around the world suffer at their expense and struggle to pay for the basic staples of life.”

“The World Bank found that crude oil is responsible for more than half of the increase in food prices,” Buis added. “Couple that with the nearly 100 percent increase in domestic gas prices over the same time frame, and the cost of oil has truly affected the well-being of all Americans in a very expensive way.”

Growth Energy Promotes Frohlich

Growth Energy has promoted Michael Frolich to Director of Communications. He joined the ethanol organization in May 2012 as the press secretary. In his new role, he will continue to serve as the primary spokesperson and media contact.

Michael Frolich Growth EnergySince its inception, Growth Energy has advocated for increasing the use of ethanol in the American fuel system by promoting ethanol’s benefits among the general public. “The appointment of Michael to Director of Communications will help strengthen and focus the strategic vision of our efforts to communicate the numerous benefits of renewable fuels to the economy, the environment and to consumers,” said Growth Energy CEO Tom Buis.

Prior to joining Growth Energy, Frohlich served as Director of Media Relations with the National Association of Manufacturers as well as Director of Federal Communications at the National Biodiesel Board. He is a native of Rochester, N.Y. and earned his bachelor’s degree from Gettysburg College.

Ethanol Supporters Disappointed in Florida Bill

A bill repealing Florida’s Renewable Fuels Standard (RFS) was signed into law Friday by Gov. Rick Scott to the disappointment of many ethanol and other biofuel supporters.

deb-mayfieldState Representative Debbie Mayfield of Vero Beach, led the opposition to the repeal of the requirement which was passed in 2008 when her late husband Stan Mayfield chairman of the Florida House energy committee. “We said that we were going to be a renewable energy state,” said Mayfield.

The Specialty Equipment Market Association (SEMA) supported the repeal, but long-time member and strong ethanol supporter Bobby Likis says they did not speak for him. “The automotive industry, businesses and consumers SEMA is purported to serve will regret this action, which is not based on facts but rather on misinformation, myths and interests spear-headed by a few,” said the automotive technician and talk show host, adding that those supporting the repeal ignored the interests “of the consumer, advancing technology, independence from foreign oil and American business development and financial success.”

“As this country struggles to comeback from recent economic hardships, it is sad to watch a state legislate away good paying jobs in the renewable energy sector and the abundant economic opportunities that come along with them,” said Bob Dinneen of the Renewable Fuels Association and Tom Buis with Growth Energy in a joint statement, noting that the federal Renewable Fuels Standard (RFS) supersedes any state law. “This toothless legislation might win favor with Big Oil supporters, but it has closed the door on job creation by the biofuels industry and sent investors packing for more visionary states. This is most definitely a lost opportunity for people of Florida.”

Needed: Summer Gas Loan

It’s that time of year when families hop in the car and begin summer vacations. It’s also the time of year when gas prices jump up and the cash in wallets jumps out. When I filled up my tank yesterday, I thought I might have to go the bank and take out a “summer gas loan” to help pay for high gas prices. I’m can’t be the only one in this boat as the high gas prices are dominating local TV news casts these days.

Gas Bill May 23 2013Growth Energy’s CEO Tom Buis notes that Big Oil’s predictability is absurd. Every year the same thing happens, as more people hit the road, prices climb. It is just as certain that the sun will set in the evening, as oil companies will use any excuse to gouge consumers and blame some outside factor,” said Tom Buis, CEO of Growth Energy. “After roughly 40 days of price increases in February, switching seasonal blends were blamed. Now, it is refinery planned maintenance and tight regional supplies. Their unending excuses are as long as the list of government subsidies they have received over the last century.”

Buis says this is just another example of many, of why renewable biofuels are necessary. They provide consumer savings and a choice at the pump. They reduce dangerous dependence on foreign oil. “While Big Oil touts all the new wells, the fracking and the so-called abundant supply right here at home, prices have not gone down. Why do prices remain so high with a so-called increase in supply? Oil companies will continue to rake in record profits on the backs of their customers as they continue their monopoly on the liquid fuels market by blocking competition and doling out the same baseless excuses time and again,” Buis continues.

“Enough is enough,” says Buis. He calls for an end to the absurd addiction to foreign oil and encourages drivers to use homegrown American ethanol. He also stresses the need to stop paying nearly a billion dollars a day for fossil fuels and foreign oil and spend the money at home.

“The latest reports that motorists will pay record prices this Memorial Day weekend at the pump is no surprise, but just one of many reasons it is time we break the addiction to oil and start using higher blends of ethanol.”

Ethanol, Biodiesel Groups Welcome New Energy Sec.

moniz2The U.S. Senate today confirmed Ernest Moniz to replace Steven Chu as the Nation’s Secretary of Energy. The 96-0 vote was welcomed by biodiesel and ethanol groups:

steckel2“Throughout his career, Ernest Moniz has supported efforts to move beyond fossil fuels to a cleaner, more secure energy future in which renewable sources play a prominent role,” said Anne Steckel, vice president of federal affairs for the National Biodiesel Board. “He knows that advanced biofuels like biodiesel are critical to our long-term energy and environmental security, and he has supported practical policies aimed at developing renewables in order to reduce our dependence on petroleum, create jobs and reduce harmful emissions.”

mcadams3Michael McAdams, president of the Advanced Biofuels Association, issued a statement in support of the confirmation. “We are pleased that President Obama tapped such a strong advocate for policy that supports solid energy growth and is a friend of the advanced biofuels community.”

buis2“I would like to congratulate Ernest Moniz on his confirmation as the Secretary of Energy. President Obama has chosen an excellent and well-qualified individual to lead the Department of Energy and I look forward to working with Secretary Moniz to continue to advance the growth and development of sustainable biofuels,” said Tom Buis, CEO of Growth Energy.

dineen1.jpgThe Renewable Fuels Association also congratulated Moniz. “Given his background and expertise in energy, we look forward to the secretary’s first visit to an ethanol plant. We are eager for him to see firsthand the positive economic impact the renewable fuel standard has had in creating new jobs and revitalizing rural economies,” said Bob Dinneen, president and CEO of the RFA.

brookeBrooke Coleman, executive director of the Advanced Ethanol Council, added his praise of the pick. “Secretary Moniz has just the right combination of technical expertise and political experience to be very effective as the new Secretary of Energy. He clearly understands what it takes to commercialize new energy technologies, and we look forward to working with the Secretary and his colleagues going forward as the advanced ethanol industry deploys commercially in the United States and abroad.”

Groups Seek to End EU Duty on US Ethanol

The Renewable Fuels Association (RFA) and Growth Energy have filed a complaint with the General Court in Luxembourg challenging the European Union’s (EU) decision to impose a 9.6 percent antidumping duty on all ethanol imported from the United States.

Growth_Energy_logo-1The complaint outlines 10 specific violations of one established trade law committed by the European Commission in its investigation of anti-dumping claims, and the imposition of a country-wide anti-dumping penalty, against all U.S. ethanol. These include errors in the assessment of relevant facts in determining injury and dumping margins as well as violations of the EU’s own rules regarding the implementation of anti-dumping penalties, such as their refusal to calculate individual dumping margins and assign individual dumping duties, their incomplete and inaccurate calculation of an alleged injury margin, and their overstatement of the volume of imports from the U.S. The complaint from RFA and Growth Energy requests the complete and total end of the duty.

RFA-logo-13The RFA and Growth Energy are trying to remedy the situation through other avenues as well. EU’s determination to impose the duty violates various requirements put in place by the World Trade Organization (WTO). Consequently, RFA and Growth Energy are working with appropriate officials in the United States to pursue a challenge before the WTO.

Earlier this month, 14 Senators signed a bipartisan letter to Acting Commerce Secretary Rebecca Blank and Acting US Trade Representative Demetrios Marantis demanding that the Administration carefully evaluate the EU’s decision to impose a duty on imported ethanol and consider challenging the WTO requirements.

Keeping RFS Still Top Concern for Ethanol Industry

Progress on a new farm bill is all well and good but defending the Renewable Fuel Standard remains the top priority for the ethanol industry.

buis-ww“The attack on the Renewable Fuel Standard is first and foremost and coupled with it is the blend wall,” said Growth Energy CEO Tom Buis st the National Association of Farm Broadcasting annual Washington Watch issues forum this week. “Oil has never been a fan of the RFS and they knew this day was coming. As we’re up against the 10% blend wall, rather than doing what the law allows and blending higher blends or helping to build out the infrastructure for higher blends to give consumers choice at the pump, they’ve decided they just want to eliminate it and eliminate competition.”

Buis notes that, despite weather challenges this year, corn growers will continue to grow enough corn to meet all needs.

Listen to an interview with Buis here: Interview with Tom Buis, Growth Energy

Ethanol Policy Update to Kick Off Discussions at FEW

FEWroundtableLooks like the discussions are going to kick off right at the upcoming International Fuel Ethanol Workshop & Expo (FEW), June 10-13, 2013, in St. Louis, Mo. One of the first sessions will be the Association Roundtable: Mid-Year U.S. Ethanol Policy Update, featuring moderator Tom Bryan, President, BBI International; Bob Dinneen, President & CEO, Renewable Fuels Association; Tom Buis, CEO, Growth Energy; and Brian Jennings, Executive Vice President, American Coalition for Ethanol, set for Tuesday, June 11 at 9 am:

Join the top executive officers of the Renewable Fuels Association, Growth Energy and the American Coalition for Ethanol for a vital summer policy update on safeguarding RFS2, correcting misinformation about RINs, building the market for E15 and mid-level blends and maintaining our national commitment to commercializing advanced and cellulosic ethanol.

Still plenty of time to make your reservation for the event. Click here for more information.

Senators Urge Probe in EU Ethanol Duty Decision

A bipartisan group of senators are asking for an investigation into a recent anti-dumping decision made by European Union regarding ethanol imports from the United States.

wtoFourteen Democratic and Republican Senators have joined together to sign a letter sent to the Acting United States Trade Representative (USTR), Demetrios Manatos and Acting Secretary of Commerce, Rebecca Blank, calling on them to review and consider a World Trade Organization (WTO) challenge to the European Union’s controversial and unprecedented anti-dumping duty recently imposed on U.S. ethanol producers.

The letter was co-authored by Senators John Thune (R-SD) and Amy Klobuchar (D-MN), and cosponsored by Senators Tom Harkin (D-IA), Chuck Grassley (R-IA), Al Franken (D-MN), Mike Johanns (R-NE), Heidi Heitkamp (D-ND), Deb Fischer (R-NE), Tim Johnson (D-SD), John Hoeven (R-ND), Claire McCaskill (D-MO), Pat Roberts (R-KS), Richard Durbin (D-IL) and Roy Blunt (R-MO).

In a joint statement, Renewable Fuels Association CEO Bob Dinneen and Growth Energy CEO Tom Buis said they are pleased to see the senators take action in the matter.

“The EU Commission failed to make any particular finding of dumping by any producer or marketer investigated in connection with the case,” said Dinneen and Buis. “The EU’s recent actions are unprecedented and we believe that the World Trade Organization (WTO) will nullify this blatantly protectionist country-wide anti-dumping duty on exports of ethanol from the United States.”

Read more here.

Florida Axes State Renewable Fuel Standard

gregeversEarlier this week, the Florida Legislature passed HB4001, a bill that repeals the state Renewable Fuel Standard (RFS). Senator Greg Evers was a huge supporter of the bill, that allows Florida consumers the ability to purchase gasoline that is ethanol free.

In a statement, Evers said, “The bill eliminates the unnecessary power of the government to force Florida citizens to buy and sell ethanol blended gasoline. It returns that power to the people and restores the power of the free market by giving consumers and retailers a choice regarding what fuel they wish to buy.”

The Renewable Fuels Association (RFA) and Growth Energy responded to the news in a joint statement:

“Today’s Senate vote was a pyrrhic victory for ethanol detractors. It substantively changes nothing because the state mandate was redundant. The federal Renewable Fuel Standard will still apply and, thankfully for consumers who will continue to see savings at the pump, ethanol and other renewable fuels will be sold in Florida.

All this bill has done is put politics and oil industry profits ahead of economic opportunity and jobs in the state. The only result of this legislation will be a loss of jobs and economic opportunity in Florida. Florida has made it clear — biofuels and the valuable jobs that are created in the renewable fuels industry are no longer welcome in Florida.”

AFPM Compares E15 to MTBE

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.

RFA-logo-13Bob 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.”

Growth_Energy_logo-1Tom 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.