Iowa drivers could save a lot of money if they had better access to E15. This news release from the Iowa Renewable Fuels Association (IRFA) says a new report from the Iowa Department of Revenue shows that if the higher blend of ethanol was widely available, Iowa drivers could save more than $50 million per year in fuel costs.
In its annual report on retail fuel sales, Iowa Department of Revenue data shows Iowa motorists purchased more than 1.2 billion gallons of E10. E15 is approved for use in model year 2001 and newer passenger vehicles and flex-fuel vehicles (FFVs), representing more than 80 percent of the fuel consumed in the U.S. On average, E15 is typically sold at a 5-cent discount to E10 in Iowa.
An IRFA analysis found that even with abnormally low petroleum prices:
· If only 20 percent of Iowa motorists used E15, Iowans could save $12.7 million per year
· If a modest 50 percent of Iowa motorists used E15, Iowans could save $31.7 million per year.
· If 80 percent of Iowa motorists used E15, Iowans would save $50.7 million per year.
“The economics are simple: the more Iowa motorists that have access to and are able to take advantage of low-cost E15, the more money consumers save,” stated IRFA Executive Director Monte Shaw. “Price is a big motivator when it comes to buying fuel, and cleaner-burning E15 is consistently priced at a discount to E10. If motorists across the state were able to utilize this safe, economical fuel, Iowa drivers would literally save millions of dollars of their hard-earned money, enabling them to spend it elsewhere in the state.”
IRFA reminds drivers that more than 100 million miles have successfully been driven on E15, and the higher blend of the green fuel is approved by the U.S. Environmental Protection Agency (EPA) for use in all 2001 and newer passenger vehicles, as well as flex-fuel vehicles (FFVs).
Biodiesel continues to be a pretty popular fuel in Iowa. This news release from the Iowa Renewable Fuels Association (IRFA) says the state’s revenue department data shows pure biodiesel (B100) sales in 2014 increased by more than 15 percent over 2013 to an all-time-high of 33.3 million gallons and now accounts for 4.6 percent of Iowa’s total diesel supply, up slightly from 2013.
Additionally, biodiesel is blended into almost 50 percent of all diesel sold, with an average blend level that climbed to 9.4 percent. The increased average blend level is largely due to a sizeable shift amongst retailers from B10 (10 percent biodiesel) in 2013 to B20 (20 percent biodiesel) in 2014.
“In the face of severe federal policy uncertainty, Iowa’s retailers and diesel users remained committed to cleaner-burning biodiesel in 2014,” stated Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “With the expiration of the federal biodiesel tax credit and uncertainty over the RFS, the increases in biodiesel sales and blending rates demonstrates the effectiveness of Iowa’s forward-thinking state policies. Policy makers in Iowa have wisely decided that cracking the petroleum monopoly cannot be left to federal policies alone – too much is at stake for Iowa’s economy and consumers. If the feds can reinstate the blenders’ tax credit and reenergize the RFS, Iowa will no doubt see even bigger gains in replacing foreign oil with homegrown biodiesel.”
Iowa has also shown its commitment to biodiesel by providing a tax credit to retailers selling B5 and higher blends, and starting this summer, Iowans buying B11 and higher blends will pay 3 cents per gallon less in state fuel taxes.
The high blend of ethanol, E85, had a big year in Iowa last year. The Iowa Renewable Fuels Association (IRFA) says a new record of nearly 12 million gallons was sold in the Hawkeye State in 2014, more than a million-gallon increase over 2013.
“Another year, and another E85 sales record in Iowa,” stated IRFA Executive Director Monte Shaw. “The most impressive aspect of this record is that retail gasoline prices dropped significantly in the second half of the fourth quarter of 2014, yet Iowa motorists remained committed to the homegrown, cleaner-burning fuel by setting a new fourth quarter record for E85 purchases. This fourth quarter data proves that not only is E85 being purchased at a record rate where available in Iowa, but consumers are realizing the benefits of this more locally-produced, environmentally-friendly fuel, beyond simply its cost advantages.”
The nearly 3 million gallons sold in the fourth quarter of 2014 was also a fourth quarter record.
The Iowa Renewable Fuels Association (IRFA) has joined the Iowa Biodiesel Board in welcoming a state gas tax that is awaiting the governor’s signature that will create a 3-cent per gallon differential tax rate for 11 percent biodiesel and higher blends. The IRFA says the measure would boost the availability and sales of cleaner-burning, locally-produced biodiesel.
Under the legislation, diesel fuel will be taxed at a rate of 32.5 cents per gallon. However, if diesel fuel is blended with 11 percent or more of biodiesel, the state excise tax is reduced to only 29.5 cents per gallon. The 3-cent per gallon differential for B11 and higher blends will go into effect on July 1, 2015.
“The biodiesel community thanks the Iowa Legislature for its commitment to increasing the use and availability of higher biodiesel blends,” stated Iowa Renewable Fuels Association (IRFA) Policy Director Grant Menke. “The 3-cent differential for blends containing at least 11 percent biodiesel will be a useful tool to build upon the progress we’ve made in cleaning up our air and supporting our economy through the use of homegrown Iowa biodiesel. The B11 differential further demonstrates Iowa’s policy leadership in expanding market access and consumer choice for renewable fuels.”
“With no end in sight on the federal policy uncertainty for biodiesel, I am grateful the Iowa Legislature took this opportunity to drive sales of higher biodiesel blends,” stated IRFA Vice President and Western Dubuque Biodiesel General Manager Tom Brooks. “This 3-cent differential for B11 and higher blends represents another step forward for the economic, environmental and energy security benefits that come along with a strong Iowa biodiesel community.”
Iowa produced 227 million gallons of biodiesel in 2014, about 16 percent of total U.S. biodiesel production for the year.
Students from Iowa have been recognized for their efforts to promote biodiesel and ethanol. The Iowa Renewable Fuels Association (IRFA) awarded prizes in its “Fuel the Future” Iowa High School Video Contest.
Anna Steenson of Des Moines won first place in the contest for Iowa high school students. The IRFA awarded the senior from Central Campus a $1,000 grand prize for her creative and informative video titled “E15: Powering the Future.”
Karly Lent of Bettendorf, Iowa won the $600 second place prize for her video entitled, “Let’s Fuel the Future.” Karly is a junior at Bettendorf High School.
Jacquelyn Huynh, Dakota Karthan, Maria Babcock and Jordan Bacon won the $400 third place prize for their video entitled, “Good for Your Car, Better for Iowa.” This group of girls is a collection of juniors and seniors from Ankeny High School.
“First, I want to thank all of the Iowa high school students who took on the challenge of entering this year’s contest and learning about the benefits of using renewable fuels,” stated IRFA Communications Director T.J. Page. “This year’s video contest winners all created highly imaginative, entertaining, and informative videos that do a great job of explaining the benefits of using cleaner-burning biofuels like ethanol and biodiesel.”
The top three videos were featured at the 9th Annual Iowa Renewable Fuels Summit.
Iowa’s renewable fuels industry is “ready to roll” in 2015 if Tuesday’s 9th Annual Iowa Renewable Fuels Summit is any indication.
Speakers at the summit included Missouri Governor Jay Nixon, who represented the Governors’ Biofuels Coalition, former North Dakota Senator Byron Dorgan, and General Wesley Clark (Ret.), Chairman of Growth Energy.
Also speaking was former Pennsylvania Senator and potential presidential candidate Rick Santorum who appeared over the weekend at the Iowa Freedom Summit. Santorum’s most tweeted quote from the summit was that the Renewable Fuel Standard (RFS) is “Pro competition, pro environment & pro American jobs.”
Addressing the state of the industry, Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw was very optimistic. “Today, I can say with absolute confidence that Iowa’s renewable fuels industry is ready to roll!,” said Shaw. “We’ve never been in a better position for the availability and diversity of feedstocks; the industry is coming off a profitable year; new markets are being developed; and new technologies are out of the lab and producing on a commercial scale. There is simply no question that this industry is ready to roll. The question is whether the President and Congress are going to allow the renewable fuels industry to “hit it,” or leave us stuck in neutral.”
The IRFA also released a study conducted by ABF Economics economist John Urbanchuk that found 2014 was a record-breaking year for the renewable fuels industry despite significant challenges. “Ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa,” said Urbanchuk. “The first and second-generation feedstocks used to produce renewable fuels are produced primarily by Iowa farmers, and the R&D expenditures for renewable fuels provide important support for Iowa’s universities. Combined, these activities make a significant contribution to the Iowa economy.”
The study found that the renewable fuels industry in Iowa accounts for more than $4.9 billion, or about 3.5 percent, of Iowa GDP, generates $2.5 billion of income for Iowa households; and supports more than 46,700 jobs throughout the economy.
The Iowa Renewable Fuels Association (IRFA) is gearing up for its big annual meeting next week just outside of Des Moines. The group says the Iowa Renewable Fuels Summit in Altoona on January 27th is free and open to the public and will feature a variety of conversations, including how energy policy might impact the 2016 Iowa caucuses and general elections, as well as discussions on higher ethanol blends and the future of energy policy in this country.
“The Iowa caucuses kick off the 2016 election cycle and we’ve already seen potential candidates swarming to Iowa,” stated IRFA Executive Director Monte Shaw. “In addition, Iowa is one of only a handful of states that will be truly ‘in play’ during the general election. We saw energy policy play a major role in Iowa’s 2014 senate race. This panel will discuss how energy policy may impact the 2016 elections.”
A panel of fuel retailers and marketers who will talk about the benefits and opportunities of offering E15 includes panelists Lance Klatt of the Minnesota Service Station & Convenience Stores Association, Jason Stauffer of STAR Energy, and Todd Garner of Protec Fuel Management:
“Each of these well-qualified panelists has years of experience with higher ethanol blends, and can provide a unique perspective on the benefits of offering E15 to 2001 and newer vehicles,” stated IRFA Managing Director Lucy Norton. “Summit attendees will not only learn a great deal about consumer choice and cracking the oil monopoly, but they’ll also learn about the benefits of using E15 from this expert panel.”
U.S. energy policy experts at the summit will include James Massie of The Alpine Group, Aaron Whitesel of DuPont, and Catharine Ransom of the Glover Park Group to discuss the future of the federal Renewable Fuel Standard (RFS), the Farm Bill, tax policy as it relates to energy, and much more.
“The 2015 Summit will have a great group of well-qualified energy experts take center stage to shine a spotlight on the RFS and other policies impacting renewable fuels,” stated Shaw. “Each one of these experts brings years of federal policy experience to the table to evaluate how the latest political changes could impact the future of US energy policy.”
More information is available here.
The nation’s leader in biodiesel production remained that way in 2014, but federal policy is being blamed for Iowa’s dip from 2013’s record biodiesel numbers. The Iowa Renewable Fuels Association (IRFA) says the state’s biodiesel production was 227 million gallons in 2014, down slightly from the 2013 record of 230 million gallons.
For the vast majority of 2014, Congress allowed the federal biodiesel blenders tax credit to expire, renewing it only in mid-December, too late to spur meaningful demand. At the same time, the EPA went through the entire year without setting a biodiesel number for the federal Renewable Fuel Standard (RFS). That one-two punch led to a nationwide biodiesel production reduction. Due to Iowa’s state-level biodiesel production tax credit, producers in Iowa were able to essentially maintain production in the face of the federal uncertainty.
“Iowa continues to lead in the production of biodiesel,” stated IRFA Executive Director Monte Shaw. “Not surprisingly, the lapse of the federal biodiesel credit and uncertainty over EPA’s Renewable Fuel Standard proposal resulted in an industry slow down. Due to favorable state policies, Iowa was able to weather the storm better than most states.”
Shaw says federal uncertainty still hangs over 2015, but if a strong and growing RFS and a multi-year federal biodiesel tax credit extension is renewed, he believes the biodiesel industry would take a strong step forward.
E85 ethanol is becoming a popular fuel in Iowa. The Iowa Renewable Fuels Association (IRFA) says motorists in the state bought more than 3.3 million gallons of E85 in the third quarter of 2014, the third highest E85 sales in any quarter on record, and a more than 350,000 gallon increase (12 percent) over the second quarter of 2014.
“It’s encouraging to see motorists stepping up to improve air quality in Iowa while taking advantage of attractive E85 prices in the third quarter of 2014,” stated IRFA Executive Director Monte Shaw. “Price is often a motivator for consumers, but there are many reasons to use E85, including the energy security, environmental and local economic development benefits. And, while falling petroleum prices may curtail E85 sales in the fourth quarter, a record setting year for E85 sales in Iowa is still within reach.”
In Iowa, 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). 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.
A list of E85 retailers in Iowa is available here.
Three retiring state lawmakers in Iowa have been honored for “their unwavering support and leadership on renewable fuels.” The Iowa Renewable Fuels Association (IRFA) says the outgoing lawmakers were given the “Lifetime Champion of Renewable Fuels” award for their long, distinguished careers and steadfast support of renewable fuels.
“It’s bittersweet to see these distinguished individuals leave the state legislature after long, successful careers, and we wish them nothing but the best in the future,” stated IRFA Policy Director Grant Menke. “Their unwavering support and leadership on renewable fuels issues will be greatly missed, and we sincerely thank them for their enduring accomplishments.”
IRFA President-elect Brian Cahill, former Sens. Nancy Boettger and Daryl Beall, and IRFA Executive Director Monte Shaw.
The Lifetime Champion of Renewable Fuels awards were given to:
State Senator Daryl Beall of Fort Dodge, Iowa. Sen. Beall was an enthusiastic supporter of renewable fuels who worked tirelessly to promote ethanol and biodiesel both inside and outside the state legislature.
State Senator Nancy Boettger of Harlan, Iowa. As a farmer, Sen. Boettger was a rock solid supporter of renewable fuels who was critical in winning support for Iowa’s renewable fuels policy, including tax credits for retailers offering higher ethanol and biodiesel blends and fuel dispensing equipment grants for renewable fuels upgrades.
State Senator Hubert Houser of Carson, Iowa. Sen. Houser was also instrumental in passing the framework of today’s renewable fuels policy in Iowa, and was active in the creation of Southwest Iowa Renewable Energy (SIRE), an ethanol production facility in Council Bluffs, Iowa.
With 43 ethanol refineries producing more than 3.8 billion gallons annually and 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually, Iowa is the nation’s renewable fuels leader.
The Iowa Renewable Fuels Association (IRFA) today announced its Board of Directors, Officers and Executive Committee for 2015, elected at last week’s annual meeting. New officers will serve a one-year term during the 2015 calendar year.
The new officers are:
President Brian Cahill, Southwest Iowa Renewable Energy
Vice President Tom Brooks, Western Dubuque Biodiesel
Treasurer Eamonn Byrne, Plymouth Energy
Secretary Rick Schwarck, Absolute Energy
“The renewable fuels industry had many accomplishments this past year, but many challenges remain for 2015,” says IRFA President-elect Brian Cahill. “Providing certainty in the marketplace and leveling the energy playing field through the restoration of a strong and growing Renewable Fuel Standard (RFS), and allowing greater consumer choice at the pump through wider availability of E15 and higher biodiesel blends will be crucial to building upon the progress we’ve made.”
Elected to join the IRFA officers on the executive committee for 2015 are, Past President Steve Bleyl of Green Plains, Inc.; and at-large members Brad Albin of Renewable Energy Group and Craig Willis, Archer Daniels Midland.
The Iowa Renewable Fuels Association (IRFA) is bringing retired Four-Star General and former NATO Supreme Allied Commander Wesley Clark to its next big conference. The group says Clark will talk about ethanol and energy security during the at the 9th Annual Iowa Renewable Fuels Summit and Trade Show on January 27, 2015 at Prairie Meadows near Des Moines.
“The IRFA is excited to have retired Four-Star General Wesley Clark address the Iowa Renewable Fuels Summit to provide attendees with a unique perspective on biofuels and their impacts on national security,” stated IRFA President Steve Bleyl. “With discussion over renewable fuels policy at fever-pitch, the 2015 Summit will be a great place to hear the latest and greatest on the future of renewable fuels.”
The meeting is free to the public. More information and registration are available here.
A sudden drop in temperatures is putting the squeeze on what is an already low fuel supply in some parts of the country, and that’s prompting a group to remind folks biodiesel can make fuel supplies last longer. On the heels of Iowa Gov. Terry Branstad’s emergency declaration that cold weather, coupled with pipeline and refining outages, is putting his state dangerously low on fuel, necessitating some short-term changes to shipping rules in Iowa, the Iowa Renewable Fuels Association (IRFA) is reminding the governor and all consumers that biodiesel could stretch tight diesel supplies being able to be blended at 5 to 20 percent levels.
“Given Gov. Branstad’s emergency proclamation, one of the best ways to help alleviate tight diesel supplies is to blend it with high-quality, homegrown biodiesel,” stated IRFA Executive Director Monte Shaw. “High-quality biodiesel blends ranging from B5 to B20 can be used and treated just as No. 2 diesel throughout the winter. Several Iowa biodiesel producers have supplies that can be shipped to a fuel terminal or jobber today.”
“I’m currently using B20 to push snow and keep my farm operation moving throughout the colder months,” stated Denny Mauser, a farmer from Early, Iowa and board member of Western Iowa Energy in Wall Lake, Iowa.
IRFA goes on to point out that not only will using biodiesel right now help alleviate the tight supply issues, but it will also support American jobs, energy security and a cleaner environment.
Ethanol and biodiesel producers in Iowa are joining in the growing chorus calling on Congress to extend some important tax credits. This news release from the Iowa Renewable Fuels Association (IRFA) says nine of the state’s advanced biofuel producers sent a letter to the entire Iowa Congressional Delegation encouraging the swift passage of a tax extenders package which includes provisions for biodiesel blending, cellulosic production, and accelerated depreciation, prior to final adjournment of the 113th Congress.
“Iowa’s entire congressional delegation has shown steadfast support for these important policies, and today we’re calling on them to take concrete steps to advance legislation extending these vital provisions that support energy security, American jobs, and a cleaner environment,” stated Western Iowa Energy Board Member Denny Mauser. “In the face of more than 100 years of preferential tax treatment for petroleum—a literal Century of Subsidies—these incentives keep advanced biofuel projects moving forward to the benefit of all Americans.”
The letter states, “It is absolutely critical to our industry that this Congress pass a tax extenders package, which includes provisions for biodiesel blending, cellulosic production and accelerated depreciation, prior to final adjournment.”
The letter goes on to point out the advantages the petroleum industry continues to enjoy in tax subsidies and says if Congress does nothing on the extenders package, the “U.S. will be left with a defacto petroleum mandate.”
Iowa high school students will once again compete to see who can produce the best video to promote the future of biodiesel, ethanol and E15. The Iowa Renewable Fuels Association (IRFA) launched the 5th Annual “Fuel the Future” Video Contest for Iowa high school students with the top three video entries receiving prizes in the amounts of $1,000, $600 and $400 respectively; airing at the 2015 Iowa Renewable Fuel Summit on January 27; and being featured on IRFA’s YouTube® channel.
“The IRFA video contest is now open, and we’re excited to see the creative ways Iowa high school students promote ethanol and biodiesel this year,” stated IRFA Communications Director T.J. Page. “With attacks from ethanol and biodiesel opponents ramping up, we can’t wait to see how Iowa high school students set the record straight on renewable fuels through their highly entertaining and informative videos.”
The Fuel the Future contest is limited to students currently attending high school in Iowa (grades 9-12 in a public, private or home school). Video entries may not exceed two minutes in length and must be submitted to IRFA via DVD, flash drive, or secure web link. To be considered for the contest, all completed video entries must be received in the IRFA office by January 16, 2015. For more information, including the official entry form and contest rules, please visit www.iowarfa.org/FueltheFuture.php. For additional questions, please contact T.J. Page at (515) 252-6249 or tpage@IowaRFA.org.
To get some ideas, check out last year’s winner, produced by John Low of Marion and titled “E15: The Fuel of the Future,” here.