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On Oct 8, Minnesota Bio-Fuels Association executive director, Brian Werner, testified a the USDA's Public Consultation on Climate-Smart Agriculture Biofuel Feedstocks.
Minnesota Bio-Fuels Association (MN Bio-Fuels) executive director, Brian Werner, was a moderator on a panel at the recent Sustainable Aviation Futures conference in Houston on Oct 3.
The US Department of Agriculture (USDA) has awarded $2.67 million in infrastructure grants to businesses in Minnesota to expand access to Unleaded 88 and E85.
Unleaded 88 sales in Minnesota this year are on course for another record year with 106.42 million gallons sold from January to September.
Unleaded 88 users now have a new option in Inver Grove Heights. The Corner Store station store in Inver Grove Heights recently began offering Unleaded 88 and E85.
The Minnesota Bio-Fuels Association's (MN Bio-Fuels) executive director, Brian Werner, was a panelist at the Minnesota Farmer's Union Green Ammonia Summit in Morris, Minnesota today.
Our sweepstakes campaign with Gopher Football, which offered football fans a chance to win $888 worth of gas, ended in late November.
Unleaded 88 sales in Minnesota in October grew 6.3 percent to 12.31 million gallons from 11.58 million gallons during the same month in 2023, according to the latest data from the Minnesota Department of Commerce.
More...
2024
Let's Not Overlook Fuel Affordability In Convenience Store Choice
Response To "The Time Is Ripe To Rethink Ethanol"
Ethanol Has Positive Climate And Human Health Benefits
Hitting The Road For - And With - Biofuels
Meeting Clean Transportation Targets Requires The Use Of Biofuels
2023
Context Missing On This Vital Fuel
Agriculture Can And Should Power The Flight Of Tomorrow
The False Narrative On Clean Vehicles
Wrapping Up Minnesota's 2023 Legislative Session
2022
Proud Minnesota Biofuel Leadership
2021
Climate-Smart Agriculture Progress Report Could Be Step In Right Direction
Infrastructure Bill Can Bring Us Closer To E15 Standard
2020
The Future Of Ethanol In Minnesota
A Plug-In Flex Fuel Hybrid For The Nation
Where Is The Aid For The Ethanol Industry?
Rebuilding Minnesota's Ethanol Industry
A Clean Fuels Program For Minnesota
2019
Biofuels in the 2019 Minnesota Legislative Session
2018
A New Beginning For Minnesota's Ethanol Industry?
Lead, Follow or Get Out Of The Way?
Time For EPA To Clean Up The Mess It Made Of The RFS
Minnesota Lawmakers Hold Key To Boost GDP By $189 Million
2017
A Solid Foundation And The Year Ahead
Self-Imposed Industry Barriers
Biofuels Infrastructure Bill A Boost For Minnesota
Minnesota Legislature Holds The Key
Biofuels and Renewable Chemicals In the 2017 Legislative Session
2016
Vigilance, Advocacy And Change
What The Recent Election Means For Ethanol
Laws Need To Be Matched By Action
Does Minnesota Have What It Takes To Seize Biofuel Opportunties?
MN's Choice : Squander Or Actualize Opportunities To Reduce GHG Emissions
Ongoing Communications With Policymakers
A Behind The Scenes Look At The 2016 Minnesota Legislative Sessions
Do Environmental Groups Really Want Solutions?
Help Candidates Understand Biofuels
2015
What's Ahead For Biofuels In 2016
Now That the Dust Has Settled: What Did the EPA Miss?
R Stands For Renewables, Even Biofuels
Could Aggregating Market Segments Help EPA Push Through The Fictitious Blendwall?
To The Agencies : Tear Down Those Blinders !
Minnesota Legislature Takes Next Step For E15
E15 Dispensing Bill Winds Its Way Through Legislature
Lack Of Transparency By State Agencies Threatens Progress On GHG Reduction
A Pathway Forward For Biofuels And Consumers
2014
The Warning Signs Are There : Fossil Fuels Will Continue To Cost More
A Century In The Making, And Now It Hinges On Your Vote
The Three 'F Words' Repeated Again And Again
A Blueprint For Expanding Minnesota's Bioeconomy
Momentum Continues To Grow For E15 & E85
The Fine Print And Critical Thinking Do Matter
Biofuels Reduce Greenhouse Gas Emissions
RFS Debate: Let's Move Forward, Not Backwards
2013
Don't Let Them Take Us Backwards
It's About Your Quality Of Life And The Next Generation
Pull Off Those Big Oil Blinders
What Does The Latest Court Ruling Mean For E15 And Consumers?
Tired Of The Gasoline Price Yo - Yo?
We Recognize The Problem And Have A Solution : E15
By Tim Rudnicki, Esq.
Welcome to the Minnesota Bio-Fuels Buzz. In the last issue of the Buzz I noted many consumer and environmental benefits are associated with Today’s 21st Century Biofuels. Since the last issue of the Buzz went out, a number of you have asked me about a biofuel called E15 and the environmental benefits of biofuels. Here is a nutshell version of some answers to those questions.
In June 2012, the U.S. Environmental Protection Agency approved adding 85% gasoline to 15% ethanol for use as a motor fuel in 2001 and newer light duty vehicles. This mixture of ethanol and gasoline is called E15 (more accurately, it should be nicknamed “Eco-15"). E15 went through about six (6) million miles of testing before it was approved for use in about 70% of the gasoline powered vehicles on the roadways today. No other fuel has received this amount of testing! The bottom line: “The Stuff Works!” (More Info On E15 Here)
If your light duty vehicle was built within the last 12 years, you can use E15. For consumers using E15, it’s like getting a premium fuel for the price of regular gasoline. Over the holidays I had the good fortune to travel to locations where E15 is available. Although the price for a gallon of gasoline is variable, E15 was 10 cents less per gallon compared to regular gasoline. E15 is a motor fuel similar to regular gasoline (most regular fuel has 90% gasoline added to 10% ethanol) except E15 performs like premium fuel for less money. Regular gasoline is 87 octane while E15 is 90 octane.
At the Minnesota Bio-Fuels Association we like to say: “Today’s 21st Century Biofuels Are Not Your Daddy’s Ethanol” for several reasons. First, Minnesota biofuel producers have significantly reduced the amount of water used to produce a gallon of biofuel. Many producers recirculate all the water they use to produce biofuels and some use less than two gallons of water to make a gallon of biofuel. Compare this to crude oil processing techniques that use 40 gallons of water to make one gallon of gasoline. (Source:Minnesota Technical Assistance Program)
Todays’ biofuels, compared to a few years ago, are improved for another reason: it takes less energy to make it and the Greenhouse Gas (GHG) emissions are far lower for biofuels. Researchers measured the amount of energy it takes to pump oil, refine it to make gasoline and then deliver the gasoline to your favorite gas station. Researchers also measured the amount of energy used to grow, harvest and process renewable energy ingredients into biofuels and to deliver those biofuels, like E15, to your favorite fuel dispenser. Remember, whether we are talking about biofuels or gasoline, it takes energy to make energy. The big difference is this: to make the same amount of energy from biofuels uses 60% less energy inputs compared to the amount of energy used to make gasoline. (Source: Argonne National Laboratory) You might wonder, how can that happen? How can we get more energy out of biofuels than what is used to make biofuels? The short answer: (1) biofuels are made from renewable ingredients that capture solar energy and store the energy in the plant material and (2) biofuel producers simply unlock the energy stored in renewable ingredients like field corn kernels and other plant materials.
Lastly, the GHG environmental issue. Based on a December 2012 published study by Argonne National Laboratory, biofuels, like ethanol, reduce Greenhouse Gas (GHG) emissions. Compared to petroleum gasoline, biofuels can reduce GHG emissions from 57% (field corn used as renewable ingredient) to 115% (miscanthus used as renewable ingredient). (Source: Argonne National Laboratory)
No need to wait! If you don’t have a flex fuel vehicle and are looking for a way to immediately reduce GHG emissions (“green” your 2001 or newer light duty vehicle), look for E15 and use E15. If you can’t find E15 at your favorite retailer, ask for E15. As soon as you start using E15, you will further reduce GHG emissions right here, right now.
Take a look at the balance of Minnesota Bio-Fuels Buzz for a sampling of some important issues in the world of biofuels. As always, if you have questions or comments about what you read in the Buzz, send me a note (Contact Page) or call me (612.924.6495).
By Tim Rudnicki, Esq.
Why should you care about what’s behind all the hype over “renewable identification numbers” (RINs)? If you buy gasoline for your vehicle, you probably know ethanol displaces dirty and expensive petroleum and serves as an octane booster for the gasoline. While it’s not immediately visible, here in the Midwest, the biofuel ethanol has helped to suppress the price of gasoline by approximately $1.69 per gallon. So where do the RINs come into the picture and why do they matter?
Under the Renewable Fuel Standard (RFS), a federal law, an oil refiner is obligated to demonstrate to the U.S. Environmental Protection Agency each year that the oil refiner has used a certain volume of biofuel like ethanol. A renewable fuel identification number is associated with each gallon of biofuel that is produced and the number goes to an oil refiner when the oil refiner buys the biofuel. With ownership of the biofuel the oil refiner may do three things with the RINs: KEEP to demonstrate compliance, BANK for the following year or SELL on the market.
With these three options, refiners have great flexibility in the marketplace. If an oil refiner is below their renewable volume obligation, the refiner can simply draw from its banked RINs. In this situation, the oil refiner uses its banked RINs to complete its volume obligation rather than actually putting more biofuel into the gasoline market. On the other hand, if the oil refiner failed to use enough biofuel or to bank any RINs, the refiner will need to buy the RINs in the marketplace.
So what happens when oil refiners keep buying their compliance with the law rather than actually providing consumers with more biofuels at the pump? You end up with the current contrived crisis. The feigned crisis is based on claims about scarce RINs, not scarce biofuels, and how scarce RINs might impact the price of gasoline.
Given the long history of the renewable fuel laws, how could this happen? To find out, here is a starter list of questions we should put to big oil:
1. Would you agree this is March 2013? When did you first learn about the Energy Policy Act of 2005? About eight years ago, this law required a growing amount of biofuels be blended with gasoline.
2. Who is responsible in your oil company for complying with the Energy Independence and Security Act of 2007? This Act was signed into law on December 19, 2007, a little over five years ago, is referred to as RFS2 and calls for greater use of biofuels.
3. Tell us what actions your oil company has taken to make E15 available to consumers? Just a reminder, in June 2012 the U.S. Environmental Protection Agency approved the use of E15 in 2001 and newer cars and light duty vehicles on the nation’s highways (approximately 70% of the vehicles).
4. Do you have a problem giving consumers more biofuel choices at the pump? The last time I purchased E15, a premium fuel, it cost about $0.10 less per gallon compared to regular gasoline.
This is not the time to change any renewable fuel law. The laws are working. The part that is not working is big oil. Big oil controls 90% of the gasoline market and they appear to be working to get more. Rather than capitulate to big oil, we need bold leadership at the state and federal level of government to hold the oil companies accountable for complying with the law - the law that requires oil companies to give consumers more biofuel choice at the pump!
Take a look at the balance of Minnesota Bio-Fuels Buzz for a sampling of some important issues in the world of biofuels. As always, if you have questions or comments about what you read in the Buzz, send me a note (This email address is being protected from spambots. You need JavaScript enabled to view it.) or call me (612.924.6495).
By Tim Rudnicki, Esq.
Shortly before Earth Day, the International Energy Agency (IEA) released a report about the progress, or lack thereof, for clean energy production. The substance of the 154 page report is reflected in these words from the IEA Executive Director: “Despite much talk by world leaders, and despite a boom in renewable energy over the last decade, the average unit of energy produced today is basically as dirty as it was 20 years ago." What factors form the basis for this statement? How is the IEA report relevant to biofuel producers and consumers in the U.S. Midwest? Are there any actions we can take to improve the situation?
The IEA is an autonomous entity that was formed in response to the oil crises in the early 1970's. It is comprised of 28 member nations, including the United States, and provides reports to the Clean Energy Ministerial which consists of 23 governments whose nations account for approximately 80% of the total global Greenhouse Gas (GHG) emissions. Among the IEA’s key initiatives is its work to ensure clean energy supplies for its members as well as other nations.
Tracking Clean Energy Progress 2013 (the “Report”) is one tool the IEA relies upon to measure progress in meeting target GHG emission reductions by 2020 and beyond. The reduction numbers are those required to stabilize the climate. While this Report covers a wide range of energy sectors and issues, we limit our focus here to the biofuel portion of the Report.
What does the IEA Executive Director mean by “dirty” energy? In two words, fossil fuels. According to the Report, while progress is being made in developing and deploying clean renewable energy, such as biofuels, the full potential and availability of renewable energy has yet to be realized in the marketplace. Meanwhile, the use of the more carbon intensive fossil fuels, including oil extracted from the tar sands of the Boreal Forest in Canada, are on the rise.
Although the carbon intensity of fossil fuels and the environmental benefits of energy efficiency and renewable energy sources have been known for decades, little substantive progress has been made in reducing carbon emissions over the last 40 years. The total carbon intensity between the 1970's to the present has been reduced by a mere 7% according to the IEA Report. To grasp the magnitude of the situation, contrast the historic progress with the carbon intensity reductions necessary in the future: 6% required by 2020 and 64% by 2050. Report at 8.
Our atmosphere is a global commons since it has no geopolitical boundaries. As energy producers and consumers, we play very important roles in caring for the atmospheric commons. Our individual as well as collective health and well-being are improved by maximizing energy efficiency and using sustainably produced, regenerative renewable energy sources. Biofuels, according to the IEA, is one of those energy sources. In fact, to achieve the target GHG reductions necessary to stabilize the climate, the IEA calls upon biofuel producers to double global production. This can be achieved by deploying advanced biofuel conversion technologies and working to improve efficiency, cost and sustainability of conventional biofuels. Report at 91.
The Producer Members of the Minnesota Bio-Fuels Association (MBA) are part of the solution! Right here, right now, these producers are leaders with respect to process efficiencies. From the field where the renewable ingredients are grown to the fuel dispenser, the life-cycle GHG emissions for the ethanol Minnesota Producers make from corn starch is 48% to 57% less relative to petroleum gasoline. Michael Wang, Well-to-wheels energy use and greenhouse gas emissions of ethanol from corn, sugarcane and cellulosic biomass for US use, December 2012. MBA Producer Members continually seek new opportunities to further improve the thermal efficiency of their operations and reuse storm and wastewater so they can provide consumers with the best environmentally responsible biofuel possible.
While Minnesota biofuel producers are part of the solution to the environmental challenges raised by the IEA, the full availability of biofuels at higher blend levels is still a problem. For instance, Minnesotans know about the environmental and pocket book benefits of “Minnesota Grown Energy - for Today and Tomorrow,” yet they have a difficult time finding the higher octane, lower priced (compared to regular gasoline) E15.
Once E15 is readily available to consumers, they can switch to E15, a higher blend of biofuels with lower GHG emissions, and immediately “green” their 2001 or newer vehicle (no need to buy a new car). How do we turn this situation around so more biofuels, such as E15, are available to consumers?
Here is one solution: the next time you stop for fuel at your favorite gas station, ask for E15. Consumers have the power to immediately decrease GHG emissions as they drive by simply using E15. E15 contains 50% more biofuel having fewer life-cycle GHG emissions compared to petroleum gasoline. Meanwhile, MBA will continue to do its part by working with coalition partners and interested retailers so consumers have more biofuel options at the pump. This concerted effort can help Minnesota consumers immediately reduce GHG emissions when driving and save more money at the pump.
Take a look at the balance of Minnesota Bio-Fuels Buzz for a sampling of some exciting issues in the realm of biofuels. As always, if you have questions or comments about what you read in the Buzz, send me a note (This email address is being protected from spambots. You need JavaScript enabled to view it.) or call me (612.924.6495).
By Tim Rudnicki, Esq.
Historical price charts tell some ugly stories about the average retail price of gasoline. According to GasBuddy.com, the price for a gallon of regular gasoline snapped from approximately $3.48 per gallon to $3.70 in early June 2012. As we follow the data forward to January 2013, we find a steep drop to $2.94 until we are snapped back up to a whooping $4.29 per gallon. Now, during the last few days of May, the gasoline price yo-yo is dropping back to about $3.89 per gallon.
This yo-yo effect in the price of gasoline, hitting the top and dropping down and doing it all over again, is easy to spot when the data is plotted on a chart. Information conduits for the petroleum industry, however, would like for us consumers to be content with the stories about “supply tightness” due to the switch from winter to summer gasoline or refiners diverting supplies to “take advantage of higher prices” in the Great Lakes states. Is this the first time refiners have experienced a change of season? Am I supposed to take comfort in knowing refiners are simply chasing the dollar in another part of the country? Perhaps the more interesting story is what the data, rather than talking-heads, tells us.
Despite the occasional drops in the price of gasoline, the trend line for the last 10 years has been shifting upward. The numbers contained in these historical price charts are, in part, about our energy past, present and future. If we base predictions on the trend line, the future will clearly include even higher gasoline prices. Given that so many factors, such as the trading price of crude oil and the petroleum refiner control of production and distribution, are beyond our individual control, what can a consumer do about the yo-yo price of gasoline?
Professors Xiaodong Du and Dermot J. Hayes studied the impact ethanol production has on gasoline markets. Their findings are astounding. Although the price for a gallon of regular gasoline is high now, it could be $1.69 per gallon higher without 10% ethanol! In short, the multi-year research found that as more ethanol entered the marketplace, it shifted the demand for petroleum downward and thereby helped to suppress the price of gasoline.
Minnesotans definitely gain a pocketbook advantage by having 10% ethanol in regular gasoline. Consumers can gain additional control over the yo-yo price at the pump by having more fuel choice options. Right now, 2001 and newer vehicles, nearly 80% of the cars on the road today, can use a blend of 15% ethanol and 85% gasoline. E15, as this blend is called, is one more fuel choice option that can further suppress the price of gasoline and help bring down the trend line because it is made from renewable ingredients. If you don’t see E15 at your favorite retail station, ask for it so you can take advantage of its environmental benefits and start saving money at the pump.
It's great to hear from you. Send me a note ( This email address is being protected from spambots. You need JavaScript enabled to view it.) or call me (612.924.6495) with your biofuel questions and ideas for the next Buzz.
By Tim Rudnicki, Esq.
Give consumers choice at the gas pump! That’s what the June 24th decision by the U.S. Supreme Court means as it let stand an August 2012 ruling by the U.S. Court of Appeals. Here’s the basis for my observation about how and why these legal issues translate into good news for consumers.
In brief, the case before the U.S. Court of Appeals was about standing. Put another way, the issue in the Grocery Manufacturers Association vs Environmental Protection Agency case was whether the parties representing the food, petroleum and engine manufacturers experienced some harm that the Court could fix. The simple answer is this: there was nothing for the Court to fix because the parties had no harm traceable to E15 (15% ethanol added to 85% gasoline - only 5% more ethanol than is now contained in regular gasoline)!
What were the food, petroleum and engine groups trying to argue? To paraphrase the Court, the engine group used a “hypothetical chain of events” and provided “almost no support for their assertion that E15 ‘may’ damage the engines they have sold” as the group cited one internal study that talked about “potential vehicle damage” from use of E15. (Page 9). The petroleum group made unsubstantiated claims about potential misfueling problems. (Pages 11-12). As for the food group, the Court found their “interest in low corn prices is much further removed from” the petroleum and engine groups who had no basis for a claim. (Page 17).
So where does this leave matters for consumers who want to use E15? The Appeals Court reviewed the process used by the U.S. Environmental Protection Agency as it approved the use of E15. For instance, the record shows the U.S. EPA was meticulous in its assessment of test results. That’s why the U.S. EPA made two approvals. First, the U.S. EPA “approved the introduction of E15 for use in light-duty motor vehicles from model-year 2007 and later.” (Page 4). Then, only after the U.S. EPA obtained “further results from Department of Energy (DOE) tests that measured the effects of ethanol blends on the durability of engine catalysts...” (Pages 4-5) did the U.S. EPA expand the approval to use E15 for vehicles built within the last 12 years.
Here is a key take away point: E15 was carefully tested and is ready for use in approved motor vehicles (2001 and newer, approximately 80% of the vehicles on the road today). E15 has been tested over 6 million miles, tested more than any other fuel in history!
To sum up, current U.S. law requires increasing amounts of renewable fuel to be made available to consumers. With higher blends of ethanol and other biofuels, we can decrease dependence on finite fossil fuels. Using homegrown renewable ethanol and other biofuels also improves air quality, keeps thousands of jobs in Minnesota and helps consumers save dollars at the pump.
It's always great to hear from you. Keep the messages ( This email address is being protected from spambots. You need JavaScript enabled to view it.) and calls (612.924.6495) coming with your biofuel questions and ideas for the next Buzz.
By Tim Rudnicki, Esq.
Race horses can’t remove their blinders, but thoughtful, engaged people can remove their metaphorical blinders to understand energy issues and ideas that surround them. When it comes to fueling our motor vehicles, big oil would like for us to keep the blinders on so we see oil as the only way to supply the energy we need to maintain a high quality of life. What are the big oil blinders preventing us from seeing?
With big oil blinders on, we might overlook some critical issues. For instance, the $31 billion in combined profits reported by several oil companies through the second quarter overlooks how these companies drill deeper into the fragile Gulf of Mexico, frack for oil and use huge amounts of water and energy to tear up the Boreal Forest for tar sands oil. Those blinders also make it difficult to see the effects of oil spills and pipeline releases around the globe including in the pristine waters of British Columbia and on popular beaches in Thailand.
Energy does, and will indeed continue to, play a role in helping us live a high quality of life. But the rate at which our life sustaining planet is being drilled and fracked for oil is not sustainable. Whether drilled or fracked, fossil fuel hydrocarbons are finite, and perpetuating the addition to them is hazardous to the planet and our health.
So how did we get stuck on finite fossil fuels as our primary energy supply? Daniel Yergin, in “The Quest: Energy, Security, and the Remaking of the Modern World,” examines this question in some detail. Yergin explores more than 100 years of energy history and details the struggle for access to oil, the consequences of its use, the impact oil has on the global economy and the complex geopolitics surrounding oil. Through this examination we learn how various public policies and taxes tamped down renewable biofuels, such as ethanol, and supported the oil industry.
Despite the policies that favored oil, in the early years of the 20th century, Henry Ford envisioned a different energy future. It was Ford who built and introduced the Model T, the first flex-fuel vehicle that could operate on either ethanol or gasoline. Later, Ford introduced the “Fordson” tractors which could also run on ethanol or gasoline. Ford was not alone in his understanding about the role biofuels could have played decades ago. Yergin also writes about a scientist from General Motors who warned that oil is finite and found the solution to be alcohol fuel: “...the most direct route which we know for converting energy from its source, the sun, into a material that is suitable for use as fuel.” The Quest at 647.
What can we see when we pull off the big oil blinders? According to Yergin and other experts, a high quality of life based in large part on renewable biofuels such as ethanol. But the future is here in some measure because Minnesota’s biofuel industry is already producing enough clean, renewable fuel to displace approximately 50% of all the gasoline purchased by Minnesota drivers. That’s only the beginning. Based on biomass processing research being done by energy and agricultural experts like Prof. Bruce Dale (Professor of Chemical Engineering at Michigan State University), cropland can be used even more efficiently and sustainably to provide more food, feed and fuel while further reducing greenhouse gas emissions.
Let’s pull off those big oil blinders and get the full picture about today’s renewable biofuels. Right here, right now, ethanol produced in Minnesota uses a small amount of water to make each gallon of fuel. Ethanol is a premium motor fuel that has 57% fewer lifecycle greenhouse gas emissions compared to gasoline. The men and women who run biofuel plants in Minnesota support 12,600 jobs. The Minnesota biofuel producers inject $5 billion into the economy. Ethanol actually holds down the price at the pump.
What else will you see when you pull of the big oil blinders? Coming very soon to Minnesota: E15! E15 is 85% gasoline added to 15% ethanol (that’s only 5% more ethanol than is currently found in most “regular” gasoline sold in Minnesota, but that 5% will make a big difference in lowering greenhouse gas emissions). Will your favorite fueling station be leading the way with E15? Find out by asking the next time you stop for fuel.
By Tim Rudnicki, Esq.
Think, for a moment, how you started your day. You probably flipped a light switch on, heated some breakfast, rode a bus or drove to your destination. Seldom do we have time to consider the energy sources used to brighten our homes or workplaces, cook meals and power a bus or other vehicles. Yet the type of energy we use, and where that energy comes from, has profound implications for our quality of life today and well into the future.
As always, I really appreciate hearing from you. Keep the messages ( This email address is being protected from spambots. You need JavaScript enabled to view it.) and calls (612.924.6495) coming with your biofuel questions and ideas for the next Buzz.