In the News
May 18, 2015
By Bob Dineen
There is nothing quite like the feeling of being on the water on a clear summer day. Tennis champion Rafael Nadal once described it as, “I like fishing. Not actual fishing, I like the peace and quiet of being at sea. It’s different.” Boating is a beloved pastime for many Americans, whether taking part in fishing, water skiing or simply enjoying the exhilarating feeling of cruising on the water.
Over the years, a lot of misinformation has been creating waves when it comes to ethanol use in marine engines. In a sign of their desperation, API actually ran ads last year claiming that ethanol—and the renewable fuel standard (RFS)—will strand boaters on the water. Nothing could be further from the truth. But as the summer months rapidly approach, we must once again equip the boating community with the facts they need to cut through the wake of misinformation being churned up by the petroleum industry.
All boaters must know that E10 can safely be used in their marine engines. Oftentimes marine publications will exaggerate concerns about E15 marine use to vilify all ethanol blends; but E15 is not approved for use in these engines. However, E10 is perfectly fine for marine engines. It doesn’t matter whether their boat has a two-stroke or four-stroke engine, an in-board or out-board motor, or a built-in or portable fuel tank.
But, don’t just take my word for it. Every marine engine manufactured today provides warranty coverage for E10. The Honda owner’s manual for the BF25A/30A Outboard Motor states that “You may use gasoline containing up to 10 percent ethanol by volume.” Additionally, Yamaha owner’s manual for the F115 notes that “Gasohol containing ethanol can be used if ethanol content does not exceed 10 percent and the fuel meets minimum octane ratings.” Manufacturers would certainly not approve a fuel that would harm the product or the consumer. Similar language appears in the owner’s manuals for Kawasaki, Mercury Marine, OMC (Johnson/Evinrude), Pleasurecraft, Tigershark (Artco) and Tracker marine engines.
In addition to the owner’s manuals clearly approving E10, Vernon Barfield, former vice president and technical chairman of the National Boat Racing Association said that “There is a myth out there that 10 percent ethanol is not good for marine engines, but we have been operating for over 20 years and have not had any issues with it whatsoever.” He continues, “…there are absolutely no problems running on 10 percent ethanol.”
We now have the facts from manufacturers and experts alike. So how do we disseminate the information? The new digital age offers a plethora of opportunities to easily get the word out at very little cost. It can be as easy as posting the information on Facebook or Twitter. E-mail also offers a quick and easy way to send the information to family and friends.
But, let’s not forget traditional media and the power of one-on-one interaction. Individuals or groups can write an op-ed or submit a letter to the editor of the local paper, ultimately reaching a larger audience. But, nothing can compete with one-on-one conversation. Have a conversation with boaters filling up at the local gas stations, strike up a discussion when launching your boat at the boat dock or chat with the local gas station owner to make sure they have the correct facts for their customers. Every little bit helps calm the waves of ethanol misinformation and create a more informed boating community.
Read the original story here : Waves Of Ethanol Misinformation
May 12, 2015
By Erin Voegele
On May 12, representatives of two biofuel trade organizations discussed the choice the White House and U.S. EPA face in proposing upcoming renewable volume requirements (RVOs) under the renewable fuel standard.
Bob Dinneen, president and CEO of the Renewable Fuels Association, kicked of the media call by discussing a letter the American Petroleum Institute and American Fuel & Petrochemical Manufacturers issued to the EPA earlier this month advocating for the agency to continue using the flawed methodology contained in the original 2014 RVO proposed rule. The RFA was among a group of 10 biofuel trade associations and companies that sent a letter EPA Administrator Gina McCarthy last week in response to the API/AFPM statement.
During the call, Dinneen noted that the heart of the controversy around the EPA’s initial 2014 RVO rulemaking is whether the agency, as a matter of law, is allowed to consider the so-called E10 blend wall in determining RFS volumes.
“The oil industry says ‘yes,’” he said, adding that the petroleum industry indicated we’ve reached the maximum level of ethanol that can be blended into gasoline because there aren’t enough vehicles or infrastructure to accommodate higher blends. “We say that’s nonsense because the RFS legislation was designed to break the blend wall, to force the investment in infrastructure and technology that would drive increased consumer choice,” Dinneen said. “The fact the law ultimately requires 36 billion gallons of renewable fuel to be used, far more than can be used in a 10 percent blend, certainly suggests where a bipartisan Congress landed on this issue in 2007.”
Dinneen also argued that API is wrong about its belief about the blend wall for other reasons. “The law provides a waiver from the required volumes for two circumstances: severe harm to the economy, which can’t be demonstrated when ethanol is less expensive than gasoline, and inadequate domestic supply. But, congress specifically rejected versions of the bill that included infrastructure and demand as a factor in such a waiver,” he said.
“Second, as a practical matter, API is also wrong about the market’s ability to consume more than 10 percent ethanol,” Dinneen continued. “There are now 17.5 million FFVs on the road capable of using anything from E10 to E15 to E85, and while EPA has approved E15 for as much as 85 percent of the vehicles on the road, manufacturers themselves now provide warranty coverage for E15 for as many as 41 million vehicles, that’s more than three times as many cars warrantied for E15 than are currently required to use premium gasoline. We don’t have a problem locating premium fuel in this country and there is no reason, other than greed, that E15 is so scarce. This is not a market or consumer issue, this is a clear case of an incumbent industry unwilling to acknowledge a changing landscape and trying desperately to hang on to its monopoly, refusing to make investments in infrastructure or allow franchisees to offer consumers a lower-priced higher-octane renewable fuel.”
To help McCarthy, members of Congress and President Obama understand the choice they face in setting the RFS RVOs, Fuels America has launched a six-figure ad buy in Washington, D.C., that includes television and digital advertisements. Dinneen stressed the choice in how to implement the RFS is essentially a choice between American innovators or oil industry profits; low carbon fuels or fracking; value-added markets for farmers and jobs in rural America or imports; and a sustainable energy future or a return to the failed energy policies of the past. “It seems like a pretty clear choice,” he said.
Brooke Coleman, executive director of the Advanced Ethanol Council, said the question is whether the EPA will, for the first time, waive the RFS if the oil industry refuses to distribute renewable fuels. “If oil companies know they can avoid the RFS by simply refusing to enter into contracts to buy and distribute our fuel, advanced biofuels will cease to have a U.S. market, and U.S. investment will dry up,” he said.
According to Coleman, the EPA’s initial proposal for 2014 RVOs has already impacted the willingness of some advanced biofuel companies to commit to additional U.S. investments. “Almost without exception, our companies are looking in China, in Brazil, in some cases in India and in some cases in Europe, to develop their second and third projects, while the first ones wait to see what the president is going to do,” he said.
Coleman also noted that the issue with the RFS rulemaking could have far-reaching impacts. If Big Oil’s refusal to comply with the RFS works, Coleman indicated that refusal could become the playbook for other industries on how to avoid compliance with Clean Air Act programs.
When asked about plans to meet with the White House to discuss the upcoming RVO proposals, Dinneen was unable to offer any specific details, but said those meetings are likely to occur. He also noted that the EPA has not held any stakeholder meetings during the initial rulemaking process.
Regarding the administration’s rulemaking decision, Dinneen added that while the RFS rule will be the EPA’s, the content of the rule will essentially be the White House’s call. He also noted that there have been so many personnel changes at the White House, it’s hard to determine what the decision will be.
Coleman added that he is fairly certain White House advisors are still considering the bad methodology, primarily because it alleviates political pressure from the oil industry. “We don’t know where they are going to go. We suspect there is more than one option on the table,” he said, adding that the Fuels America ad buy is only the first in a long series of strategies that will be deployed over the course of the month to help explain to those in Washington, D.C., and consumers as a whole, what the choice is all about.
Coleman also said that he expects the EPA to issue the RVO proposal within the June 1 timeline agreed to in court documents. While the White House Office of Management and Budget technically has up to 90 days to consider a proposed rule, Coleman said the OMB has acknowledged the EPA’s timeframe in announcing an expedited review of the rule. “I would be quite surprised if the administration was not able to get the proposal out in the timeframe that they’ve agreed to with the courts,” he said.
The EPA submitted the proposed rule for the 2014, 2015 and 2016 RVOs to the OMB on May 7. In April, the agency announced its intent to release proposed rulemaking for the 2014, 2015, and 2016 RFS renewable volume requirements (RVOs), along with 2017 RVOs for renewable diesel, by June 1. Final rulemaking is scheduled to be issued by Nov. 30.
Read the original story here : Biofuel Trade Groups Discuss RFS Rulemaking, Announce Ad Campaign
May 12, 2015
By Chris Prentice
May 12 In a long-running battle between oil refiners and the U.S. farm lobby over the future of ethanol fuel, biofuel producers may have just made a small, but important dent in big oil's formidable defenses.
Over the past few months, privately held retailers Kum & Go and Sheetz have become the first significant chains to announce plans to start selling E15, a gasoline with 15 percent of ethanol, 50 percent more than the typical U.S. blend.
By the end of 2016, those two retailers plan to add E15 at pumps at 125 stations. That will more than double the number of U.S. outlets offering cheaper fuel with a higher ethanol content than the standard E10 blend that contains 10 percent of ethanol.
If retailers continued to add stations at a similar pace over the next five years, there would be some 1,300 stations offering E15.
That would still be just a fraction of the 150,000 stations nationwide, but the roll-out of the fuel by two significant operators with outlets in 17 states challenges a central pillar of oil industry's opposition to ethanol's wider use.
Effectively forced to surrender a tenth of the U.S. market by government policies promoting biofuels, oil firms have argued the U.S. market for ethanol has reached a saturation point.
Yet retailers' expansion plans suggest room for greater E15 acceptance.
"Until now, the conversation around E15 was: why in the world would you have that?" said John Eichberger, Executive Director of the National Association of Convenience Stores' Fuels Institute. "Now, it's that there may be a reason, an economic incentive."
For retailers that blend their own fuel, the incentives are clear.
$15 BILLION PRIZE
Bumper crops have sent corn prices tumbling and shaved a quarter off ethanol's cost over the past year. At the same time blenders, such as Kum & Go and Sheetz get government credits for mixing in ethanol, which they can sell to oil companies that need them to meet federal biofuels targets.
Ultimately at stake is about $15 billion oil firms would lose to ethanol producers in a motor-fuel market worth $370 billion, based on futures and retail prices compiled by the U.S. government, if E15 replaced E10 as the new standard.
Based on last year's E10 consumption, Aakash Doshi, vice president at Citigroup in New York, estimates countrywide adoption of E15 would boost ethanol-for-fuel consumption by 40 percent to some 20 billion gallons.
That increase would propel consumption in the United States beyond the level set by the 2007 biofuels policy of some 15 billion gallons annually through 2022.
"It'll be years before E15 really takes off, but it is becoming a larger market," Doshi said.
Even incremental increases in E15 use would be a boon for corn producers as ethanol inventories stay at multi-year highs.
Eichberger, whose group represents gas retailers and fuel blenders, warns E15 has yet to win broader acceptance among retailers and drivers.
Long painted by oil firms as an engine-killer, E15 has been cleared by the U.S. authorities as safe for most newer cars and several manufacturers including Audi, Ford Motor Co and General Motors have approved its use in newer models.
However, the majority of automobiles on the road are still not approved to run on E15 and drivers who use it could risk losing their warranty, said a spokesman for the American Automobile Association.
Gas station owners' fears that they might be held liable for engine problems have largely limited E15's availability to some 100 mom-and-pop stations, primarily in the U.S. Corn Belt states that support the ethanol industry.
Selling for 5-10 cents a gallon less than an already cheap E10, the higher blend may still appeal to cost-conscious drivers and an important test of its popularity will be whether it can spread beyond the Midwest, the U.S. farm and biofuel heartland.
Kum & Go started its roll out in April in Iowa, the largest ethanol-producing state and the center of political support for the renewable fuels, and will add it at pumps in six more states.
Sheetz plans to start offering the fuel by the end of this month and will have it at 60 stations throughout North Carolina by spring 2016, a company spokeswoman said.
"We are getting closer to a point of critical mass," said Kum & Go vice president of fuels Jim Pirolli.
Read the original story here : At The Gas Pump, US Biofuel Lobby Scores A Point Against Big Oil
May 11, 2015
By David Shaffer
Increased driving and gasoline consumption are helping the ethanol industry pull out of a first-quarter slump.
Producers of the corn-based fuel reported steep declines in operating income for the first quarter, marking a sudden end to companies’ record 2014 profits.
“The industry as a whole had a tough go in the first quarter,” said Mark Warren, partner and CFO for Ascendant Partners, a Denver-based financial advisory firm that tracks ethanol plants’ performance. “We are seeing things turn a little bit as of late.”
Industry officials say that Americans are driving more, and are projected to use more fuel in 2015. Demand for ethanol is expected to increase. Some ethanol plants are making investments to boost output.
“U.S. gasoline consumption continues to improve,” Juan Luciano, CEO of the nation’s largest ethanol producer Archer Daniels Midland (ADM), told analysts on a conference call last Tuesday. “That will translate into stronger domestic demand for ethanol. These, combined with strong exports, will keep our assets running hard, especially as we move through the summer driving season.”
ADM, which has an ethanol plant in Marshall, Minn., reported a 73 percent decline in its ethanol-related operating profit, to $42 million for the three months ending in March. The biofuel segment reported $156 million in operating profit in the first quarter of 2014.
Ethanol makers largely attributed the quarter’s slump to the drop in the wholesale price of ethanol, which typically is blended at 10 percent at the pump. As crude oil and gasoline prices began to decline in late 2014, ethanol sold for less, squeezing some ethanol producer margins.
“They certainly did get slammed — a year ago they were having record margins,” said Alex Breitinger, a commodities futures broker at Paragon Ag Advisors.
Of seven Minnesota-affiliated ethanol makers tracked by the Star Tribune, Green Plains, the nation’s fourth-largest producer, reported the only ethanol-related operating loss — $3 million — in the quarter ending in March. Other producers said first-quarter operating profits declined by two-thirds or more from the same period last year.
Valero Energy Corp., the nation’s third-largest ethanol producer and owner of Minnesota’s largest biofuel plant in Welcome, reported a 95 percent drop in quarterly ethanol operating profits to $12 million. A year ago, Valero’s record first-quarter generated $243 million in ethanol operating profits.
But executives said ethanol margins have rebounded since March. At Green Plains, the Omaha-based owner of 12 ethanol plants including large operations in Fergus Falls and Fairmont, CEO Todd Becker projected ethanol will be profitable for the year.
U.S. ethanol exports should range from 800 million to 1 billion gallons, Becker told analysts. The nation’s producers exported 836 million gallons of ethanol in 2014, a 35 percent increase over 2013, but short of the 2011 record, according to the Renewable Fuels Association.
On the domestic market, wholesale ethanol is trading at least 40 cents per gallon less than gasoline, Becker said. That’s important because even with government blending mandates, ethanol’s penetration of the fuel market still relies heavily on price.
Minnesota, which requires a 10 percent ethanol blend, has 21 ethanol plants with a total capacity of 1.1 billion gallons annually. The industry refined 36 percent of the state’s 2014 corn crop into fuel, corn oil and animal feed, contributing $2.4 billion to the state’s gross domestic product, according to a report issued last week by the Minnesota Biofuels Association.
Although low gasoline prices hurt the industry’s margins early this year, the long-term effect may be quite the opposite.
U.S. gasoline consumption is on the rise. For the six months ending in March, consumption rose 2.7 percent over the same period last year. The U.S. Energy Information Administration says it expects another 1.6 percent hike this year, mainly because of lower fuel prices and a better economy.
If the consumption and export projections are correct, U.S. ethanol plants could be running at full capacity and still need to draw on stocks in storage, Becker said.
Warren of Ascendant Partners said some ethanol producers, including Green Plains, have announced upgrade projects to boost output. After the banner year in 2014, many producers are in a position to make such investments, he added.
“Last year a lot of these plants paid down a lot of debt,” Warren added. “A lot of them are in pretty good financial shape … These guys aren’t strapped.”
Another pressure on ethanol plants — high corn prices — also has gone away for now. A bushel of corn has been trading at a relatively low $3.60, below the break-even point for many farmers.
“Since the first of the year, I would expect every ethanol producer is much happier,” said Breitinger of Paragon. “Corn is down 40 cents a bushel and ethanol has gone up pretty substantially at the same time. So their margins should be looking better.”
Read the original story here : Ethanol Industry Looks To Drivers and Exports For Path Out Of A Slump
May 6, 2015
By Timothy Cama
The Obama administration is conducting the last step in its review of proposed annual ethanol blending mandates for three separate years.
The Environmental Protection Agency (EPA) sent the proposal, which has not been revealed publicly, to the White House Office of Management and Budget, Reuters reported, citing industry sources.
The proposal would cover ethanol and biodiesel blending requirements for fuel refiners for 2014, 2015 and 2016 under the renewable fuel standard.
The EPA agreed in court last month to propose the levels for 2014 and 2015 by June and to release the final mandates by November. The 2014 level should have been out in November 2013, and the 2015 one a year later.
White House review is the final step before the EPA can release the proposals publicly and gather comments from the public on them.
The declined to comment on the Tuesday report.
Read the original story here : EPA Sends Ethanol Proposals For Final Review
May 4, 2015
By Chris Prentice
NEW YORK (Reuters) - U.S. government delays in rolling out renewable fuels policy have stymied some $13.7 billion in investments and have prevented advanced biofuels companies from meeting mandated target volumes, according to an industry group analysis.
The U.S. Environmental Protection Agency's (EPA) slow rulemaking on the Renewable Fuel Standard program over the past two years has "chilled" an influx of capital needed to boost commercial production, according to the Biotechnology Industry Organization (BIO).
The Washington firm represents biotechnology companies like Abengoa Bioenergy and DuPont.
Production of advanced and cellulosic renewable fuels, which use plant waste as a feedstock, has failed to meet targets set by Congress in 2007, stoking debate over the policy. Corn-based ethanol represents the vast majority of renewable fuels in use.
The EPA has been late in meeting annual deadlines to set volumes of renewable fuels required to be blended into the transportation fuel pool, which critics say has created uncertainty throughout the industry. The agency is late in announcing mandates for both 2014 and 2015.
The EPA has to approve new ways companies have designed to qualify a fuel under RFS policy. Delays in that process have helped dry up funding, according to BIO.
Read the original story here : EPA Delays Prompt $13.7 billion Shortfall In Biofuels Investment : Report
April 27, 2015
WASHINGTON (April 27, 2015) — Today, Morning Consult released the results of a national survey conducted on behalf of the Renewable Fuels Association (RFA). Morning Consult contacted 2,047 registered voters on April 5–7. The results show that Americans overwhelmingly support the Renewable Fuel Standard (RFS) as 62 percent came out in support of the RFS while only 18 percent opposed the successful policy. Results from the full survey have a margin of error of ± 2 percent.
Bob Dinneen, president and CEO of the Renewable Fuels Association, commented on the new poll, stating, “This poll clearly shows that the oil industry’s misinformation, hyperbole, and manufactured angst against the RFS is not resonating with an American public that wants competition for the pump, relief for their wallet, and lower carbon fuels for the planet. More than six in ten Americans understand the economic, environmental, and national security benefits of the RFS. Congress and the Environmental Protection Agency should take note of the high level of support for the program and allow the RFS to work at the levels Congress envisioned in 2007. Failure to do so only rewards the recalcitrant incumbent industry, jeopardizes investment in new innovative technologies, and ignores an American public intent upon moving our nation’s energy future forward.”
Key Takeaways:
More than Six in 10 Support the Renewable Fuel Standard (RFS)
Nearly two in three registered voters (62 percent) support the RFS, which requires a certain amount of the fuel produced each year to come from ethanol, bio-diesel and other renewable sources that are not fossil fuels. The RFS garners broad, bipartisan support from Democrats (65 percent), Independents (61 percent) and Republicans (57 percent) alike. Less than two in 10 voters (18 percent) oppose the standard and two in 10 have no opinion (20 percent).
Strong Support for Federal Tax Incentives on Cellulosic Ethanol Expansion
Federal tax incentives to assist funding of Cellulosic ethanol — a biofuel produced from wood, grasses and other non-edible parts of plants — receive support from two-thirds of voters (65 percent).
Voters Oppose Tax Incentives for Oil Companies
Fifty-one percent of voters oppose tax incentives given by the federal government to oil companies in order to help pay for such things as equipment depreciation, oil depletion allowances, and foreign investment tax credits for taxes they pay in foreign countries. Only about one-third of voters (34 percent) support such government assistance to oil companies and 15 percent have no opinion.
Seven in 10 Support Requiring Automobile Manufacturers to Build Alternative Fuel Cars
Sixty-nine percent of registered voters support requiring automobile manufacturers to build cars that will run on fuel sources other than oil, such as electricity, natural gas and bio-fuels.
Key Data :
- 65 percent of men and 58 percent of women support the Renewable Fuel Standard (RFS).
- 70 percent of voters with a Bachelor's degree and 69 percent of government employees support the RFS.
- 68 percent of Democrats, 65 percent of Independents and 62 percent of Republicans support federal tax incentives to help fund the expansion of cellulosic ethanol
- By more than a 30-point margin, voters support federal tax incentives to expand the use of cellulosic ethanol over those for oil companies
- 57 percent of Independent voters oppose federal tax incentives for oil companies
- 85 percent of Democratic Men support requiring auto manufacturers to build alternative fuel cars.
Read the results of the survey here : Renewable Fuels Association Poll : Over Six In 10 Voters Support The RFS
April 27, 2015
By Cindy Zimmerman
Over the weekend at Richmond International Raceway, American Ethanol and NASCAR officially celebrated five years and seven million miles of running on 15% ethanol blended Sunoco Green E15, unveiling a new paint scheme with E15 prominently located on the hood of Austin Dillon’s No. 3 Chevrolet SS.
“This has been a tremendous partnership,” said Tom Buis, CEO of Growth Energy. “Since NASCAR switched to Sunoco Green E15 five years ago, we have seen a very a substantial change in the national dialogue regarding ethanol – when people see NASCAR rely on ethanol week after week in all three of its national racing series, they understand that it is a fuel that they can rely on as well.”
During a press conference on Saturday, National Corn Growers Association President Chip Bowling talked about what the American Ethanol partnership has meant for American farmers. “E15 American Ethanol turns our unrivaled ability to produce corn into a national asset. Consumer demand for ethanol is good for family farmers and fans appreciate that,” said Bowling. “We have grown the 12 largest corn crops in history in the last 12 years so ethanol demand is critical. It means farmers can pay their bills, reinvest in the broader economy and keep family operations like mine viable for future generations.”
Bowling added that according to a 2014 study, NASCAR fans are over 75 percent more likely than non-fans to support the use of ethanol blended with gasoline to fuel their own car.
More...
Apr 23, 2015
Washington, DC – As the Environmental Protection Agency (EPA) works toward finalizing its proposed rule on biofuels volume requirements for 2014 and subsequent years under the Renewable Fuel Standard (RFS), U.S. Senators Amy Klobuchar (D-MN), Chuck Grassley (R-IA), Dick Durbin (D-IL), John Thune (R-SD), Al Franken (D-MN), and Mark Kirk (R-IL) are leading a bipartisan group of 37 senators in calling for a strong RFS. The EPA’s latest proposal would create uncertainty for ethanol and biodiesel producers and undermine job creation. In a letter to the EPA, the senators urged the agency to reverse course from the 2014 proposed rule and maintain a strong RFS to drive innovation and growth in America’s economy while helping reduce our dependence on foreign oil.
“The RFS has already proven to be an effective driver of alternative fuels and economic development,” the senators wrote. “It has strengthened agriculture markets and created hundreds of thousands of jobs in the new energy economy, many of which are in rural areas. The biofuels volume requirements for 2014 and beyond have serious implications for our economy and energy security. We encourage you to ensure a final proposal continues to work toward achieving the RFS’s long-term economic and renewable energy goals.”
The RFS requires that transportation fuel sold in the United States contain an increasing amount of renewable fuel each year through 2022. While the volume of biofuels that transportation fuel must contain each year has already been set by Congress, the EPA proposed a lower level than Congress intended for 2014. The EPA recently stated it will finalize the biofuels volumes for 2014, 2015, and 2016 by November 30, 2015, but it has not indicated what the volume levels will be. Once the EPA finalizes the required 2014 level, refineries will be able to determine whether they met last year’s biofuels requirements or need to purchase additional renewable fuel credits in order to come into compliance. Moving forward, the senators are calling on the EPA to ensure that the RFS continues to drive further adoption of biofuels.
Last year, the senators met with EPA Administrator Gina McCarthy and sent a letter to McCarthy with 25 other colleagues to urge changes to the administration’s proposed 2014 RFS rule, which would hurt the nation’s agriculture economy and energy security.
The following senators also signed onto today’s letter: Tammy Baldwin (D-WI), Michael Bennet (D-CO), Roy Blunt (R-MO), Barbara Boxer (D-CA), Sherrod Brown (D-OH), Maria Cantwell (D-WA), Dan Coats (R-IN), Joe Donnelly (D-IN), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Martin Heinrich (D-NM), Heidi Heitkamp (D-ND), Mazie Hirono (D-HI), John Hoeven (R-ND), Ed Markey (D-MA), Claire McCaskill (D-MO), Jeff Merkley (D-OR), Patty Murray (D-WA), Bill Nelson (D-FL), Gary Peters (D-MI), Jack Reed (D-RI), Pat Roberts (R-KS), Mike Rounds (R-SD), Brian Schatz (D-HI), Jeanne Shaheen (D-NH), Debbie Stabenow (D-MI), Jon Tester (D-MT), Elizabeth Warren (D-MA), Sheldon Whitehouse (D-RI), and Ron Wyden (D-OR).
The full text of the senators’ letter is available below:
Dear Administrator McCarthy:
As you work toward finalizing the proposed rule on biofuels volume requirements for 2014 and subsequent years under the Renewable Fuel Standard (RFS), we urge you to take this opportunity to reverse course from the 2014 proposed rule and craft targets for domestic biofuels that reflect Congress’ intended goals for the RFS.
The RFS has already proven to be an effective driver of alternative fuels and economic development. It has strengthened agriculture markets and created hundreds of thousands of jobs in the new energy economy, many of which are in rural areas. Setting strong biofuels volume requirements for 2014 and beyond will ensure this progress continues. A stable RFS will also provide the certainty needed to unlock future investments in renewable fuels and necessary infrastructure, reduce our nation’s dependence on foreign sources of energy, and drive innovation and progress toward cellulosic, biodiesel, recycled-waste, algal, and other advanced biofuels.
When Congress passed the RFS and it was enacted into law, the intent was a forward-looking policy that drives future investments in both biofuels production and the infrastructure necessary to bring these biofuels to market. With its harmful 2014 proposed rule, the U.S. Environmental Protection Agency limited biofuels volume requirements based on available existing infrastructure, a condition that falls outside of the EPA’s clearly defined waiver authority provided by Congress in the RFS.
The biofuels volume requirements for 2014 and beyond have serious implications for our economy and energy security. We encourage you to ensure a final proposal continues to work toward achieving the RFS’s long-term economic and renewable energy goals.
Sincerely,
April 20, 2015
By Devin Henry
A progressive group is promoting ethanol on the anniversary of the Gulf of Mexico oil spill.
Americans United For Change has launched a six-figure ad campaign in the Midwest, promoting the federal ethanol mandate in Des Moines, Iowa and warning that efforts to repeal it could result in more incidents like Deepwater Horizon. The oil drilling rig exploded five years ago Monday, killing 11 and eventually spilling 3.19 million barrels of crude oil into the Gulf of Mexico.
The ad is meant to target Republican presidential candidates — some of whom are wary about the Renewable Fuel Standard (RFS) — in the state that produces the most ethanol and hosts the nation's first presidential caucuses.
"It comes down to this: the more Big Oil drills, the more they spill," the group's president, Brad Woodhouse, said in a statement. "If lawmakers discourage innovation towards cleaner renewable fuels of tomorrow, Big Oil will only be encouraged to drill, and spill, more."
A separate ad campaign in Chicago promotes a proposed ordinance requiring gas stations offer a fuel made with a higher blend of ethanol.
Green groups and environment-minded lawmakers have used the anniversary of the Gulf oil spill to make the case against expanded off-shore oil drilling. Americans United for Change's ads come as the energy industry, environmental groups and lawmakers gear up for a larger fight over the 10-year-old ethanol mandate.
Read the original story here : Progressive Group Pushes Ethanol On Gulf Oil Spill Anniversary
April 15, 2015
By Timothy Cama
Former Secretary of State Hillary Clinton met with representatives of Iowa’s ethanol industry Wednesday as part of the first trip of her campaign for the president.
Clinton, the Democratic frontrunner, met with Iowa former secretary of agriculture and lieutenant governor Patty Judge and Bruce Rohwer, director of the Iowa Corn Growers Association, among other Democrats.
Judge is also a co-chairwoman of America’s Renewable Future, an ad-hoc group advocating for 2016 presidential contenders to endorse the federal ethanol blending mandate.
“We had the opportunity to talk about issues facing Iowa — renewable fuels being one of them,” Judge said in a statement after the meeting in Marshalltown, Iowa.
“Secretary Clinton was extremely receptive and I feel encouraged by her comments about the Renewable Fuel Standard,” she said.
Rohwer also said he was happy with the meeting.
“I was able to thank Secretary Clinton for her past support of the RFS and I am confident future conversations will be just as positive,” he said in the statement.
Clinton opposed the ethanol mandate in the Senate in 2002 and called it a “tax.”
But when she ran in the 2008 presidential election, Clinton was strongly supportive of the renewable standard, which is widely supported in Iowa, whose economy depends large on the corn that makes most ethanol.
She said ethanol provides one of the best chances toward “limiting our dependence on foreign oil.”
Read the original story here : Clinton Meets With Ethanol Representatives
American Coalition For Ethanol
April 13, 2015
By Gene Hammond, owner of Association Motor Club Marketing
As the co-owner of Travelers Motor Club and Association Motor Club Marketing, my colleagues and I never imagined we would be on Capitol Hill visiting with Members of Congress about the safety of ethanol-blended fuels, but that’s exactly what we did recently as part of the American Coalition for Ethanol annual grassroots fly-in.
We’re not lobbyists. We’re in the business of helping motorists who get stranded and need fuel, a tire repair, a quick tow or who lock themselves out of their cars. Our companies serve nearly 20 million motorists in all 50 states, and we’ve operated auto clubs for more than forty years. But for two short days on Capitol Hill in March, we met with 17 congressional officesfrom Arizona, California, Georgia, Louisiana, Mississippi, Nevada, New Jersey, New York, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Wisconsin to explain what we’ve heard from our auto club members regarding E15.
More than two years ago gas stations around the country began selling E15, a new fuel approved by EPA for cars made in model year 2001 and later. AAA and some gas companies predicted frequent and severe engine problems from this new fuel and called on the federal government to suspend the sale of E15. As stations began to offer E15 and motorists began using it, we closely monitored our road service calls for any indication of problems from the new fuel. The results? We’ve never had an E15 related service call or complaint of any kind. That E15 hasn’t caused any damage to cars is no surprise to us, because during our entire time in the motor club business, we’ve never had a complaint about any blend of ethanol in gasoline, period.
But the critics and the E15 ghost stories haven’t gone away, so we did our part recently by meeting with Members of Congress about what we’ve seen, and more importantly what we haven’t seen, from the usage of E15 by our motor club members. If the anti-E15 predictions and warnings Congress has heard for the last two years were true, the people who had those problems would be well known to you by now. But the charges aren’t true. We let Congress know how safe this fuel is. We don’t think motorists should be forced to use any fuel, but what the Renewable Fuel Standard (RFS) does is give every driver in the United States the option to buy a quality American made product like the E15 fuel blend if they choose. More fuel choices mean more competition and that means our members save at the pump.
With nearly 20 million members nationwide, we’ve seen it all. Flat tires, dead batteries, and a lot of people who accidently put diesel in their gasoline-powered cars. When these things happen, we’ll be there to help. What we haven’t seen and don’t ever expect to see, are problems from using E15 or any other blend of ethanol.
Read the original story here : Motor Club's Blog Post : E15 Is Safe
April 10, 2015
By Erin Voegele
The U.S. EPA has posted a notice to its website announcing that the volume requirements for the 2014, 2015 and 2016 renewable fuel standard (RFS), along with the 2017 volume requirement for biomass-based diesel, will be finalized by Nov. 30. A portion of the new compliance schedule is the result of a proposed consent decree in litigation brought against EPA by the American Petrochemical Institute and American Fuel and Petrochemical Manufacturers.
Under the proposed consent decree, the EPA said that it will propose 2015 RFS volume requirements by June 1 and finalize volume requirements for 2014 and 2015 by Nov. 30. Also under the decree, the EPA will resolve a pending waiver petition for 2014.
Outside the scope of the decree, the EPA has committed to propose RFS volume requirements for 2016 by June 1 and finalize them by Nov. 30. The agency also said it will finalize the RFS biomass-based diesel volume requirements for 2017 on the same schedule. Regarding the 2014 standard, the EPA said it will re-propose 2014 volume requirements by June 1 that reflect the volumes of renewable fuel that were actually used in 2014.
The consent decree relates to a lawsuit filed against the EPA by the API and AFPM on March 18 in the U.S. District Court for the District of Columbia. In the compliant, the oil groups allege the EPA has violated a nondiscretionary duty under the Clean Air Act to establish renewable fuels obligations for 2014 and 2015 and to approve or disapprove a petition filed by the API and AFPM to waive, in part, the 2014 RFS. That waiver petition was submitted to the EPA in August 2013.
Documents published by the EPA explain that the consent decree is not yet final. While it has been signed by the API and AFPM and lodged with the court, it has not been signed by EPA and has not been signed or entered by the court at this time. According to a notice filed by the EPA with the court, the consent decree is not final and cannot be entered by the court until the EPA administrator provides a reasonable opportunity by notice in the Federal Register for members of the public to comment in writing. Following the public comment period, if none of the comments disclose facts or considerations which indicate that the decree is inappropriate, improper, inadequate, or inconsistent with the CCA requirements, the administrator will request that the court enter the decree.
The Renewable Fuels Association has spoken out in support of the EPA rulemaking timeline. “We applaud EPA and API for reaching an agreement that will provide all stakeholders some certainty with regard to the renewable fuel standard,” said Bob Dinneen, president and CEO of the RFA. “No one has benefited from the delays in setting annual renewable volume obligations; and while we are sympathetic to the difficulty EPA faces in promulgating annual targets, the statute is clear about the volumes required and the agency simply has to do a better job moving forward. This consent agreement is a good start. We are particularly pleased that the agency has committed to addressing the 2016 RVO in the same timeframe even though that is outside the scope of the consent agreement. More important than EPA meeting its statutory deadlines, however, is that the agency recognize the market transforming purpose of the RFS and allow the RIN mechanism to drive investment in infrastructure and compel consumer choice at the pump.”
The Adavanced Ethanol Council also supports the agreement between the EPA, API and AFPM. “The scheduling agreement between the oil industry and EPA is actually a good signal for the advanced biofuels industry because it lays out a time frame and a reasonable market expectation for resolving the regulatory uncertainty around the RFS,” said Brooke Coleman, executive director of the AEC. “Now that we have a better idea of when it will happen, we look forward to working with EPA to make sure that the new RFS proposal supports the commercial deployment of advanced biofuels as called for by Congress. We were encouraged by EPA’s decision late last year to pull a problematic 2014 proposal, and we are optimistic that EPA will make the necessary adjustments and put the RFS back on track going forward.”
Growth Energy said the EPA’s timeline will provide the industry with some certainty. “I am pleased to hear that the EPA has finally put a process in place to establish some certainty for biofuel producers with the recent announcement of the timeline for the proposed 2015 RVO rule by June 1st as well as the final 2014 and 2015 volume obligations by Nov. 30, 2015,” Tom Buis, CEO of Growth Energy, said. “Our producers have faced ambiguity for too long and today is welcome news that they are establishing a level of certainty with this announcement. However, far more important than timing is that that the EPA establishes a final rule that moves our industry forward, and reflects the bipartisan vision Congress intended for the RFS. Additionally, while not part of the consent decree, we are pleased to see that the EPA has committed to finalizing the 2016 RFS RVO numbers this year as well. By taking this action, they are ensuring that the RFS is back on a path to certainty for the biofuels industry, providing the necessary guidance for the industry to continue to thrive and advance alternative fuel options for American consumers.”
The American Coalition for Ethanol is also pleased with the EPA’s newly announced timeline. “ACE has consistently said it is much more important for EPA to get the RFS done right than it is for them to get the RFS done quickly, and that bears repeating given today’s announcement that the RFS will be getting back on track for implementation,” said Brian Jennings, executive vice president of ACE. “Last year Big Oil came close to bullying EPA to completely re-write the RFS so they could escape their legal responsibility to blend E15 and flex fuels into gasoline. But thanks to comments from ACE members and other biofuel supporters, EPA wisely chose to abandon their proposal to set the 2014 RFS on the E10 blend wall. It appears EPA is going to get the RFS back on track for implementation. Our priority will continue to be to ensure EPA holds oil companies legally responsible under the RFS for making cleaner and less expensive fuel choices, such as E15 and E85, available to consumers.”
The National Biodiesel Board said it is supportive of the EPA’s announcement. “We are pleased to see the EPA make these further commitments toward ending these delays,” said Anne Steckel, vice president of federal affairs at the NBB. “Biodiesel is the most successful EPA-designated Advanced Biofuel under the RFS to date, and the Obama Administration should be doing everything it can to promote biodiesel so we can show that Advanced Biofuels are here today, cutting greenhouse gas emissions by more than 50 percent, creating jobs and reducing our dependence on global petroleum markets that wreak havoc on our economy. The RFS is the most successful policy we have for reducing emissions in the transportation sector, and it is working. We applaud the EPA for taking this step and look forward to working with the Administration in the coming weeks to get this program back on track.”
Read the original story here : EPA To Finalize 2014, 2015 and 2016 RFS Rules By November
April 10, 2015
By David VanderGriend
In baseball, they often refer to the leadoff man as the igniter, whose job is to get the offense going: get on base, start a rally and set the stage for a lot of runs. In many respects, that’s the role of the renewable fuel standard (RFS), to set the stage for a bigger score for biofuels. But rather than focusing on a big inning, the ethanol industry may be playing small ball as we await the final rulemaking renewable volume obligations (RVO). The U.S. EPA stated it intends to package 2014 with the 2015 and 2016 volumes in what could be one heck of an announcement by the end of June.
I am encouraged by numerous recent statements out of EPA that it remains committed to making the RFS all it can be. But at the same time, let’s not kid ourselves. Do we really think there are going to be any surprises? We know that the 2014 RVO will be exactly what was consumed and 2015 is not likely to be any different. EPA will be hard-pressed to do anything more than take what was used the first half of 2015 and multiply by two, so we probably know that number as well. Sure, there might be a little more due to an increase in E15, midlevel blends and E85. For 2016, there might be a slight increase, if total gasoline use goes up. But for now, it is clear we will wind up somewhere in the 14 to 15 billion-gallons-per-year range for corn ethanol. There may be another billion or two gallons in the export market, but would the corn ethanol industry be satisfied with a 17 billion-gallon cap, when the motor fuel market is 125 billion gallons plus? I certainly am not.
I have always viewed the RFS as an important building block, assuring a base market. Whether wearing my hat as CEO of ICM or as president of the Urban Air Initiative, or as a member of most ethanol trade organizations, I support the RFS. However, it should not be viewed as what defines the value of biofuels, a value which can only be realized if we get the fuel into the market.
How do we get access to the market? How do we maintain the RFS and build on it? The answer lies with carbon controls and protecting public health—the new value proposition.
One element Congress got right with the RFS was to reward fuels that reduce carbon emissions. While the corn cap is law and, to some extent, EPA's hands are tied, the carbon footprint of corn ethanol is demonstrably better than the credit given by EPA. Our work at ICM and other new, and constantly evolving, research clearly shows that corn ethanol can attain advanced biofuel carbon-reduction levels, one of the primary objectives of the RFS.
If refocusing on achieving carbon reduction is one way to create new demand, another is the critical issue of improving fuel quality and emissions of gasoline. Ethanol's greatest strength is its high octane. This is an issue of public health in that ethanol used in midlevel blends like E15 or E30 can replace some of the most harmful components of gasoline—if we have access to the market. At ICM and Urban Air Initiative, we have concluded that EPA is blocking access to the market for midlevel blends and we are challenging them.
In legal action along with the Energy Future Coalition, ICM has asked the courts to agree that the certification procedures adopted by EPA are keeping E30 out of the market. In another challenge, UAI is calling EPA out on its antiquated modeling used to guide states on how to control pollution that includes an unwarranted penalty for ethanol. Our research, supported by auto industry experts, clearly shows many of the negative emissions attributed to ethanol are, in fact, changes made to base gasoline. Splash blending ethanol always improves gasoline quality and EPA’s outdated models simply need to be updated. Why is this so important? Gasoline is the source of some of the most dangerous and harmful pollutants linked to a range of health and respiratory ailments, including lung disease and even neurological disorders. Infants, the elderly and expectant mothers are particularly at risk.
The RFS is the platform to launch and engage the environmental and health communities in this discussion. Let’s get past the RFS numbers game—as important as it is—and look at additional ways to reduce carbon and protect public health.
Read the original story here : Setting The Table For The Big Score
April 7, 2015
As world food prices hit a near five-year low, dropping 1.5% last month according to the United Nations' Food and Agriculture Organization's most recent price report, Growth Energy said this is proof that " claims of ethanol increasing food prices do not hold any merit."
According to the FAO, the global food price has been on a downward path since April 2014. It tracks five major food commodity groups internationally: cereals, meat, dairy products, vegetable oils and sugar.
In the latest report comparing February 2015 to March 2015, sugar was down significantly, charting a 9.2% drop; vegetable oil a 3.1% drop; cereal and meat about a 1% drop; and dairy was the only gain, with a 1.7% increase.
Tom Buis, CEO of Growth Energy, said the report shows the U.S. and other nations are "capable of producing increased quantities of food, feed, fiber and fuel."
He noted that global grain stocks increased between 2006-07 marketing year and the 2013-14 marketing year by 160 million metric tons, or 47%. Those dates correspond with the enactment of the Renewable Fuel Standard, he said.
The RFS is a policy that sets the amount of renewable fuels to be blended in the domestic fuel supplies.
Buis said global crop prices have strengthened also, helping farmers invest in new production practices that improve sustainability and productivity.
Read the original story here : FAO's Latest Food Price Report Good News For Ethanol