In the News
December 29, 2015
By Iowa Renewable Fuels Association
The Iowa Renewable Fuels Association recently announced that Iowa’s 43 ethanol plants produced over 4 billion gallons during 2015, up slightly from 3.9 billion gallons in 2014. Iowa continues to be the number one ethanol producing state, and is estimated to account for roughly 27 percent of national ethanol production in 2015. The increase came from efficiency gains and debottlenecking at existing plants, as well as ethanol production from cellulosic feedstocks such as corn stover and corn kernel fiber.
“While Iowa took a modest step forward in production this year, we have the corn supplies to really expand ethanol production,” said IRFA Executive Director Monte Shaw. “What we don’t have is access to the market for higher ethanol blends. The USDA blender pump grant program will help move the needle forward in 2016 and we hope the EPA will get the RFS back on track when they propose the RFS levels for 2017. If we can crack the petroleum monopoly on fuel choice, it will benefit consumers, farmers and the environment.”
Iowa is the nation’s leader in renewable fuels production. Iowa has 43 ethanol refineries capable of producing 3.9 billion gallons annually, including nearly 55 million gallons of annual cellulosic ethanol production capacity. In addition, Iowa has 12 biodiesel facilities with the capacity to produce nearly 315 million gallons annually.
The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.
Read the original story: Iowa Sets Ethanol Production Record at 4 Billion Gallons in 2015
December 28, 2015
By Convenience Store News
Just a few years ago, some convenience store retailers and consumers alike were hesitant to sell and purchase E15 fuel, respectively, due to misfueling concerns and allegations that the blend of 15-percent ethanol and 85-percent gasoline could cause damage to vehicle engines. Today, the thought process about E15 has clearly changed, according to a new consumer survey conducted by Carbonview Research, a sister company of Convenience Store News.
During the Convenience Store News 2015 Fuels and Tech Summit, held earlier this week, Randi Etzkin, manager of client research for Carbonview, shared the results of its survey of 942 fuel decisionmakers aged 18-64 in eight Midwest cities ripe with E15 expansion. The research revealed:
•55 percent of respondents want to find out more about E15;
•44 percent find E15 "appealing;"
•35 percent want to use E15 for their car; and
•34 percent said E15 is "believable."
Etzkin acknowledged that price (cited by 71 percent of respondents) is the biggest factor consumers use to determine whether to purchase E15. If E15 - which carries an 88 octane - was sold at the pump at the same price as traditional E10 petroleum, 38 percent of those surveyed said they would likely buy the alternative fuel.
If E15 is priced 5 cents less than E10, 49 percent said they would likely buy E15, while a 10-cent difference would entice 60 percent of consumers to purchase E15 over E10.
Consumers also said they would be more likely to be loyal to the gas station that sold them E15. Fifty-seven percent of respondents said they would likely use the same gas station for their next fillup.
"People familiar with E15 think it is appealing, intriguing and a quality product," Etzkin said during her presentation.
On the flip side, those who said they would not purchase E15 cited performance and interest/need as the biggest reasons for not doing so.
The Carbonview executive did stress that the best way to advance the growth of E15 is by retailers educating consumers about the alternative fuel in any way possible.
E15 is currently offered in 175 locations throughout 19 states. It is approved for use in cars manufactured in the model year 2001 and newer.
The Convenience Store News Fuels & Tech Summit took place Dec. 7-8 at the Palm Beach Marriott Singer Island Beach Resort & Spa in Riviera Beach. The event was sponsored by Growth Energy, Warren Rogers and ZipLine.
Read the original story: Study Shows Consumers, Fuel Retailers More Positive on Ethanol
Renewable Fuels Association
December 21, 2015
An analysis of 2016 model year (MY) warranty statements and owner’s manuals conducted by the Renewable Fuels Association (RFA) shows that auto manufacturers explicitly approve E15 (15 percent ethanol 85 percent gasoline) use in more than 70 percent of new vehicles. This is up from 2015, when just over 60 percent of MY 2015 automobiles were clearly approved for E15.
RFA’s analysis shows that, for the first time, Fiat Chrysler Automobiles (FCA Group) has approved the use of E15 in its MY 2016 Chrysler/Fiat, Jeep, Dodge, and Ram vehicles. FCA’s decision means it joins the other members of the “Detroit Three” (General Motors and Ford) in unequivocally allowing E15. Other key points from RFA’s analysis include:
GM started approving the use of E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles.
More than 45 percent of the vehicles sold in the United States this year have been produced by the Detroit Three, according to industry data.
Other automakers offering explicit approval of E15 in MY 2016 vehicles include Toyota/Lexus, Audi/Porsche/Volkswagen, Honda/Acura, Jaguar, and Land Rover. Together with the Detroit Three, these manufactures have produced approximately 72 percent of the vehicles sold in 2015.
When flex-fuel vehicles (FFVs) produced by Nissan and Mercedes-Benz are included, RFA estimates the percentage of MY 2016 automobiles explicitly approved by manufacturers to use E15 is even larger (FFVs are approved to use up to 85 percent ethanol blends).
With a U.S. market share of 8.5 percent, Nissan Motor Company is the largest “hold-out” when it comes to approving the use of E15 in its vehicles. Nissan even goes as far as suggesting that “E-15 fuel will adversely affect the emission control devices and systems of the vehicle,” which raises questions about why Nissan is not able to provide the same quality of technology as automakers approving the use of E15. Curiously, Nissan also warns drivers that oxygenates like ethanol “can cause paint damage.”
Hyundai, Kia, and Subaru also continue to exclude E15 from their fuel recommendations. Together, these three foreign automakers account for about 11 percent of U.S. auto sales. While Subaru recommends that gasoline used in its vehicles contain “no more than 10% ethanol,” it allows the use of gasoline containing 15% MTBE—a toxic substance banned in dozens of states because of groundwater pollution concerns.
Interestingly, BMW’s MINI Hardtop appears to allow the use of 25% ethanol blends. The manufacturer states, “Fuels with a maximum ethanol content of 25%, i.e., E10 or E25, may be used for refueling.”
“This analysis should open some eyes and finally lay to rest the ridiculous myth that automakers do not allow the use of E15 in their vehicles,” said RFA President and CEO Bob Dinneen. “In fact, 2016 will be the fifth year in a row in which some auto manufacturers have explicitly included E15 in owners’ manuals and warranty statements as an approved fuel. With each passing year, more and more vehicles sold in the U.S. carry the manufacturer’s unequivocal approval for E15; and with each passing year, the auto warranty misinformation campaign undertaken by AAA and Big Oil fades further into irrelevance.”
Dinneen also noted the utter hypocrisy of statements made by AAA and the oil industry that using E15 may void auto warranties. “Ironically, not a single automaker approves the use of 85 octane gasoline, and the Department of Energy (DOE) warns that using such fuel may void warranties,” he said. “Yet, 85 octane gasoline continues to be sold all across the Rocky Mountain region and refiners are fighting tooth and nail to keep this inferior gasoline in the marketplace.”
While automakers began approving the use of E15 in their vehicles in 2012, approximately 6 million miles’ worth of testing by DOE and the Environmental Protection Agency (EPA) shows that the use of E15 is safe in all vehicles built since 2001. E15 waivers issued by EPA in 2010 and 2011 effectively approve the use of E15 in all vehicles built since 2001; this means more than 85 percent of the total current U.S. vehicle fleet can safely and legally run on E15.
The RFA analysis can be found here.
Read the original story: RFA Analysis Shows Uptick in Number of Automakers Who Have Approved E15 for Use in New Vehicles
Claremont, Minnesota - Al-Corn Clean Fuel, a farmer-owned ethanol production cooperative, has announced plans for a modernization and expansion project at their ethanol facility in Claremont, MN.
The project will make Al-Corn Clean Fuel more profitable for members and allow the cooperative to modernize its grain facility, add rail capacity, lower its greenhouse gas score, and drive down the cost of production.
"I am very excited about new investment in agricultural processing facilities in southern Minnesota" said Senator Dan Sparks, Chairman of the Senate Jobs, Agriculture and Rural Development Committee. "I know the Claremont ethanol plant was one of the first plants built in Minnesota and has been a huge financial success. I congratulate the plant and wish it future success."
Representative Rod Hamilton, Chairman of the House Agriculture Finance Committee, added, "Agriculture is the backbone of Minnesota's economy, and the expansion of Al-Corn is a testament to the importance of corn growers to our state. Through more job opportunities as well as an increased demand for corn and ethanol, the modernization of this plant is welcome news for all of us who value agriculture in southern Minnesota."
With facilities expanding throughout the renewable fuels sector, margins continue to tighten. Those facilities that are expanding and reducing cost are primarily those that are newer, larger, and already more efficient in terms of operating costs. This puts tremendous pressure on older, smaller, less efficient plants.
The expansion and modernization project will make Al-Corn Clean Fuel more competitive, thereby allowing the member-owned cooperative to continue operating for the long term.
"This is a huge project for our area, and we are excited to see the growth and economic impact it will have" said Jennifer Libby, President and CEO of Owatonna Area Chamber of Commerce. "We are excited for our member company, Al-Corn Clean Fuel, and for all our local communities that will benefit as a result."
Senator David Senjem added "I am excited to learn of Al-Corn’s decision to expand and become one of Minnesota’s largest ethanol producers" said Senator David Senjem. "Expansion means more jobs, more markets, and more economic vitality for our area of the state".
"Al-Corn Clean Fuel is a valuable asset to the farmers and the general economy of my district" said Senator Vicki Jensen. "This expansion and modernization investment ensures we can stay competitive in the value added agricultural market ethanol has been to Minnesota."
Construction is scheduled to begin in 2016, with completion in late 2017.
December 21, 2015
By Chris Woodward
Voters in Iowa will choose their favorite presidential candidates in February, and while the economy and national security are big issues, Iowans also place importance on things like ethanol.
According to a new poll from the Des Moines Register, 77 percent of likely Iowa caucus-goers who identify as Democrats support the ethanol mandate, a 2007 law requiring increasing amounts of alternative fuels to be blended into gasoline. In addition, 61 percent of Republican caucus-goers support the ethanol mandate. Ethanol is an alternative fuel source made from corn and other plant materials.
Iowa just happens to be the nation's largest producer of corn and ethanol, which has big implications for presidential candidates from both parties. Regardless, Democrats and Republicans in recent years have expressed support for ethanol – and not just those in Iowa, but also on Capitol Hill and the campaign trail.
Bob Dinneen, president and CEO of the Renewable Fuels Association, contends that ethanol helps reduce the America's dependency on foreign oil.
"Ethanol is a stone-cold winner when it comes to the environment,” he says. “It is 30 percent to 40 percent better when compared to gasoline in terms of carbon emissions. It helps to address global climate change. But more than that, it is reducing tailpipe emissions that cause real health effects."
Dan Kish, senior vice president for policy at the Institute for Energy Research, says ethanol does have certain good qualities, and acknowledges that production has gotten more efficient with some of the leftover product being used to feed certain livestock. Still, Kish says he would rather see a free-market scenario with ethanol.
If it were such a great idea, this would happen naturally in a free market, in a free country - not by dictates coming from the government," he states.
The Des Moines Register poll did ask likely Iowa caucus-goers if they support tax deductions for oil and gas exploration and development. Of Republicans, 59 percent say yes, compared to 26 percent of Democrats. When asked about these matters in recent years, Kish told OneNewsNow that these "are the same tax breaks that normal businesses get for investment."
Meanwhile, Dinneen has dimissed concerns that ethanol is bad for some, if not many, engines. He also dismissed concerns by restaurant groups and some environmentalists that ethanol has a negative impact on food prices and the environment.
Read the original story: Ethanol Will Factor in Big for Both Parties in Iowa
Dec 21, 2015
By Robert Wright
The global media landscape these past few weeks has been dominated by coverage of world leaders meeting at Paris Climate Summit to agree on measures to address climate change. COP21 an excellent opportunity to reboot the debate about biofuels, and ethanol in particular, and begin a discussion on how to best capture their genuine ability to play a positive role in the fight against climate change.
Tackling climate change is one of the biggest challenges we face. Unless we take decisive action to reduce greenhouse gas (GHG) emissions, there is little hope of limiting damaging rises in global temperatures. Achieving the GHG reductions that are needed to stay below a 2-degree Celsius increase in global temperatures will require substantial emission reductions in the transport sector.
Today, global transport emissions have increased to 14 percent of the world’s GHG emissions and about a quarter of the total energy-related CO2 emissions. With the United Nation’s Intergovernmental Panel on Climate Change predicting transport emissions could double by 2050, the need for preventative policy measures by world leaders is clear and urgent.
It was therefore reassuring that 36 countries had, in their Intended Nationally Determined Contributions plans, highlighted biofuels use as a key component of their climate action policies. Sixty-four countries worldwide, including the European Union, U.S. and Brazil, already have policies mandating the use of biofuels, but more need to do so.
Decarbonizing global transport is a huge task, because it is more than 95 percent dependent on oil. We therefore need to find ways of making the existing vehicles, including planes and ships, and infrastructure cleaner. It will undoubtedly be a huge challenge but, according to the IPCC, transport’s growing emissions could be cut by 15 to 40 percent through “aggressive and sustained” policy measures, including reducing the carbon intensity of transport fuels by substituting oil-based products with biofuels. This can be achieved, and sustainably.
According to the International Energy Agency, by 2050, sustainably produced biofuels could provide 27 percent of the world’s total transport fuel and avoid around 2.1 billion metric tons of CO2 emissions per year, eventually providing 23 percnet of total emission reductions in the transport sector.
This is the emissions reduction potential of biofuels that needs to be realized. But the potential can only be realized if policy frameworks at national, regional and global level are stronger, more stable and more ambitious.
Ethanol has a vital role to play in global decarbonizing transport because it is the most used biofuel globally and can achieve GHG emissions reductions of between 40 to 90 percent compared to petrol. Because it can be blended with petrol, and used in existing petrol engines, it also allows us to decarbonize the current fleet without needing to replace existing vehicles and infrastructure. It is clean, affordable, and here today. I’m not saying that ethanol is a silver bullet, but it is one of the main technologies that can play an important role in decarbonizing transport.
Ethanol is already helping the world to reduce its carbon emissions. Just this week, the Global Renewable Fuels Alliance, in cooperation with (S&T)2 Consultants Inc., released a new report which found that, in 2014, the total GHG emission reductions from global ethanol use were 100 million metric tons—equivalent to the total national GHG emissions of Sweden and Norway combined. The report predicts that even under a conservative, business-as-usual scenario, the total GHG emission savings achieved from global ethanol use could rise to 155 million metric tons in 2030.
Along with their climate benefits, biofuels are a key part of the global agricultural complex, facilitating rural development and supporting food production, particularly in poorer regions. Our industry is a key driver of clean technology innovation and investment but we constantly recognize the need to innovate even further. One way we can do this is through investment in advanced biofuels, which are produced from wastes and residues.
Ethanol is just one of the technologies that will play an important role in the fight against climate change. But unlike other solutions, it is ready to use today—here and now—and at scale. With ethanol, we can make an immediate impact on reducing global transport emissions. So let’s make that impact.
Read the original story here : Reboot Global Debate On Biofuels
December 16, 2015
Press Release
The Port of Seattle, Alaska Airlines [NYSE:ALK] and Boeing [NYSE:BA] are partnering to move toward a significant environmental goal: powering all flights by all airlines at Seattle-Tacoma International Airport with sustainable aviation biofuel. Sea-Tac is the first U.S. airport to lay out a long-term roadmap to incorporate aviation biofuel into its infrastructure in a cost-effective, efficient manner.
At the Sea-Tac fuel farm today, executives for the port, Alaska Airlines, and Boeing signed a Memorandum of Understanding (MOU) to launch a $250,000 Biofuel Infrastructure Feasibility Study that will assess costs and infrastructure necessary to deliver a blend of aviation biofuel and conventional jet fuel to aircraft at Sea-Tac, a crucial step toward routine biofuel use in the future.
“As leaders in aviation biofuels, this will send a signal to airlines and biofuel producers that Sea-Tac Airport will be ready to integrate commercial-scale use of aviation biofuels,” said Port of Seattle Commissioner John Creighton. “Biofuel infrastructure will make Sea-Tac Airport an attractive option for any airline committing to use biofuel, and will assist in attracting biofuel producers to the region as part of a longer-term market development strategy.”
The partners’ longer-term plan is to incorporate significant quantities of biofuel into Sea-Tac’s fuel infrastructure, which is used by all 26 airlines and more than 380,000 flights annually at the airport. Sea-Tac is the 13th busiest airport in the U.S. and will serve over 42 million domestic and international passengers this year.
Joe Sprague, senior vice president of communications and external relations for Alaska Airlines, Sea-Tac’s largest carrier and leader of the airport’s fueling consortium, said the airline wants to incorporate biofuel into flight operations at one or more of its hubs by 2020, with Sea-Tac as a first choice for the Seattle-based airline.
“Biofuel offers the greatest way to further reduce our emissions,” said Sprague. “This study is a critical step in advancing our environmental goals and stimulating aviation biofuel production in the Pacific Northwest.”
The Port of Seattle will manage the $250,000 study as the biofuel roadmapping process and, as Sea-Tac Airport’s governing authority, would handle the engineering and integration of biofuel infrastructure on Port property such as the airport’s fuel farm. An RFP for the infrastructure study will be issued in the spring of 2016, and the study is expected to be completed by late 2016. Currently, aviation biofuels are not produced in Washington state and must be imported by truck, rail or barge.
Boeing, which partners globally to develop and commercialize sustainable aviation biofuel, is providing expertise about approaches to develop a regional biofuel supply chain to serve the airport, including fuel types, fuel producers, processing technologies and integration with airplanes.
“Sustainable aviation biofuel will play a critical role in reducing aviation’s carbon emissions over the long term,” said Sheila Remes, Boeing Commercial Airplanes vice president of Strategy. “Boeing, Washington state’s largest employer, is proud to work with our customer Alaska Airlines and the Port of Seattle to power every plane at Sea-Tac with a biofuel blend and lead the way for other airports to do the same.”
Approved “drop-in” aviation biofuel is blended directly with regular petroleum-based jet fuel and used in airplanes without any changes to the aircraft or engines. Using sustainably produced biofuel reduces lifecycle carbon dioxide emissions by 50 to 80 percent compared to conventional petroleum fuel, according to the U.S. Department of Energy. Since 2011, when biofuel was approved for commercial aviation, airlines have conducted more than 2,000 passenger flights with a blend of biofuel and conventional petroleum jet fuel.
The Port’s Century Agenda Goal is to reduce aircraft-related carbon emissions at Sea-Tac Airport by 25% by 2037. The key strategy to reduce these emissions is through aviation biofuel. Historically, the Port has been a leader in supporting research and development of aviation biofuels, and as models of other international airports and airlines using biofuel emerge, Sea-Tac is also developing a market-support role.
In the past five years, Alaska Airlines has become a leader in the pursuit of finding a sustainable supply of biofuels. In 2011, Alaska was the first airline to fly multiple flights using a 20 percent blend of sustainable aviation biofuel made from used cooking oil and waste animal fat.
In the next year, Alaska will partner with Gevo, Inc. to fly the first ever commercial flight on alcohol-to-jet fuel. In addition, as a partner in the Washington State University-led Northwest Advanced Renewable Alliance (NARA), Alaska plans to fly a demonstration flight next year using a new aviation biofuel made from forest-industry waste. Fuel for both demonstration flights must first be independently certified.
As part of Boeing’s commitment to protect the environment and support long-term sustainable growth for commercial aviation, the company partners globally with airlines, governments, research institutions, fuel companies and others to develop sustainable aviation biofuel. Boeing has active biofuel projects in the U.S., Australia, Brazil, Canada, China, Europe, Japan, the Middle East, South Africa and Southeast Asia. More information: www.boeing.com/environment
Read the original release: Port of Seattle Partners with Alaska Airlines and Boeing on Plan to Supply Sustainable Aviation Biofuel at Sea-Tac Airport
Dec 17, 2015
By John McCormick
Ted Cruz's position on a requirement that's key to corn-based ethanol runs counter to the views of a solid majority of those likely to attend Iowa's Republican presidential caucuses, the latest Bloomberg Politics/Des Moines Register Iowa Poll shows.
Cruz's position, which is drawing a sustained attack against him from a pro-ethanol group trying to influence the caucuses, could threaten his standing as the Republican front-runner in a state that's key to his potential path to the nomination. Iowa is the nation's top corn and ethanol producer.
"We have to look at all sorts of ways to extend our energy supply," said Gloria Filean, a Republican from Des Moines who supports the RFS and plans to attend the caucuses. "It's good for the country to have that extra resource."
The poll also exposes the parochial nature—and potential for hypocrisy—surrounding federal assistance programs.
While majorities of likely Republican caucus-goers favor help for ethanol and government-backed crop insurance, they're generally opposed to support for other agricultural products, such as peanuts, sugar and milk, that don't do much to benefit their own state.
Government-supported crop insurance is favored by 57 percent of likely Republican caucus-goers. Subsidies for peanuts, sugar and milk are opposed by 56 percent. The one exception to the home-state favoritism: oil and gas exploration. Among Iowa Republicans surveyed, 59 percent supported tax deductions for the fossil fuels that ethanol and other alternatives are vying to displace.
Support for certain government programs that assist Iowa comes even though Republicans often call for a much smaller federal government. Cruz defends his opposition to the RFS as a matter of consistency in that regard. He says he's trying to avoid having the federal government pick "winners and losers" in the energy sector.
Likely Democratic caucus participants are more supportive of government agriculture assistance across the board. Majorities back federal assistance for ethanol (77 percent), crop insurance (74 percent) and subsidies for peanuts, sugar and milk (52 percent). On tax deductions for oil and gas exploration, however, 69 percent of likely Democratic caucus-goers are opposed.
Cruz's opposition to the RFS has made him the prime target of America’s Renewable Future, a pro-ethanol group that is led by the son of Iowa Republican Governor Terry Branstad. The group is in the midst of a three-week advertising campaign critical of Cruz that's playing out on radio stations statewide, as well as through direct mail and digital ads.
“We want Iowans to know that, unlike what Ted Cruz would like to have them believe, he is a typical politician who will say one thing in Iowa and do another in Washington,” Eric Branstad, the group's state director, said in a statement this week as part of the release of a new ad critical of Cruz. “His entire career he’s been in the pocket of the oil industry and he will continue to stand up for it against Iowa farmers and the Renewable Fuel Standard.”
Catherine Frazier, a Cruz campaign spokeswoman, didn't respond to an e-mail seeking comment.
ARF, a non-profit, was formed to organize around the ethanol issue ahead of the caucuses. The group has 17 field staffers across the state, more than many of presidential campaigns, and is active in each of the state's 99 counties.
It also says it has pledges from more than 50,000 people to attend the caucuses, with slightly more than half of those being Republicans. That's a sizable group, considering roughly 122,000 attended the 2012 Republican caucuses.
In some ways, Cruz is an easy target because he comes from an oil-rich state and has been the beneficiary of significant campaign contributions from the oil and gas industry.
He also was a co-sponsor of legislation that would repeal the RFS. Earlier in the year, he touted his stance on the issue as proof that he won't pander to those in early-voting states.
His opposition to ethanol is being highlighted at a time when farmers are under pressure because of low corn and soybean prices triggered by what appears to be a record harvest this year and plentiful global supplies.
The Iowa Poll, conducted Dec. 7-10 by West Des Moines-based Selzer & Co., included 400 likely Republican caucus participants and 404 likely Democratic caucus participants. On the full sample, it has a margin of error of plus or minus 4.9 percentage points, although higher for subgroups.
Read the original story here : Cruz Out Of Sync On Ethanol With Likely Republican Caucus-Goers In Iowa Poll
More...
December 16, 2015
Communications Release
Last night congressional lawmakers reached an agreement on a $1.1 trillion spending bill that not only funds the government until 2016, but also contains a tax extenders package which includes several provisions of significant importance to the biofuels industry. The bill contains a two-year extension of the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, and the Alternative Fuel Mixture Tax Credit. Bob Dinneen, president and CEO of the Renewable Fuels Association, released the following statement:
“By including these important tax incentives in the spending bill, congressional lawmakers sent a strong signal that they are interested in ensuring and encouraging the continued growth and innovation of our nation’s biofuels industry” said Dinneen. “These incentives are crucial for leveling the playing field in a tax code that is, unfortunately, overwhelmingly tilted toward the oil and gas industry. Oil companies have long benefited from billions in accelerated depreciation, intangible drilling expenses, and countless other tax breaks that are permanently imbedded in the tax code. Fundamental tax reform is critical to correct this imbalance.”
Lawmakers also included a repeal of Country of Origin Labeling (COOL) in the spending bill. COOL is a labeling law that requires retailers to notify their customers with information regarding the source of certain food and agricultural products. The World Trade Organization (WTO) had determined COOL violated trade agreements and recently ruled Canada and Mexico could seek up to $1 billion in retaliatory tariffs. Canada had previously threatened to place ethanol on a list of products that could be subject to retaliatory tariffs if the law was not repealed.
“The repeal of COOL removes a long-standing threat to the continued fair and free trade of ethanol with Canada. Its repeal will allow domestic producers to be able to trade ethanol in the global marketplace without fear of a retaliatory tariff from our largest ethanol export market,” said Dinneen.
Read the original story: RFA: Tax Incentives will Encourage Growth and Innovation in Nation’s Biofuels Industry
December 14, 2015
By Erin Voegele
The National Renewable Energy Laboratory has released its 2014 Data Book, showcasing increased use of renewable energy. According to the report, renewables accounted for approximately 11.1 percent of U.S. energy production in 2014. U.S. energy production totaled approximately 87 quadrillion Btu (quad) in 2014, with renewables accounting for 9.7 quad of that amount.
Natural gas accounted for 35 percent of U.S. energy production in 2014, with coal accounting for 23.3 percent. Crude oil accounted for 21 percent and nuclear accounted for 9.6 percent.
Biomass accounted for 5.6 percent of energy projection followed by hydropower at 2.8 percent, wind at 2 percent, solar at 0.5 percent and geothermal at 0.3 percent.
U.S. energy consumption reached 98.3 quad last year, with 35.4 percent of that volume coming from petroleum, 28 percent from natural gas, 18.2 percent from coal, 8.5 percent from nuclear and 9.8 percent from renewables. Biomass accounted for 4.9 percent, followed by 2.5 percent for hydropower, 1.8 percent from wind, 0.4 percent from solar, and 0.2 percent from geothermal.
Regarding ethanol, the report indicates U.S. production increased by nearly 7.6 percent in 2014, reaching 14.3 billion gallons. The increase was experienced despite sharp ethanol and gasoline price decreases. In comparison, only 1.622 billion gallons of ethanol was produced in 2000.
Last year, the U.S. produced an estimated 58 percent of the world’s ethanol. Brazil produced 25 percent, while the European Union produced 6 percent, China produced 3 percent and Canada produced 2 percent. On a global basis, ethanol production has increased from 10.77 billion gallons in 2004 to 24.57 billion gallons last year.
Of the 19,282 alternatively fueling stations in the U.S., NREL reports 15 percent supply E85. Approximately 57 percent supply electricity, while 15 supply propane, 8 percent supply compressed natural gas, 4 percent supply B20, 0.6 percent supply liquefied natural gas, and 0.3 percent supply hydrogen.
Iowa is the top state for ethanol production, with 3.99 billion gallons of capacity, followed by Nebraska with 1.99 billion gallons, Illinois with 1.43 billion gallons, Minnesota with 1.13 billion gallons and Indiana with 1.05 billion gallons.
The report also addresses biodiesel, reporting that the U.S. led the world in biodiesel production last year, followed by Germany, Brazil, Argentina, France and Indonesia. Globally, biodiesel production grew from 555 million gallons in 2004 to 7.85 billion gallons in 2014.
In the U.S., biodiesel production reached 1.8 billion gallons in 2013, falling to 1.75 billion gallons last year. In 2001, the U.S. produced only 5 million gallons of biodiesel.
A full copy of the report is available on NREL’s website.
Read the original story: NREL's 2014 Data Book Features Ethanol Statistics
December 8, 2015
By William Petroski
Supporters of the Renewable Fuels Standard, seen as key to the future of Iowa’s corn-based ethanol production, are ramping up criticism of Texas Sen. Ted Cruz, saying he’s the only presidential candidate from both parties who has refused to either tour a biofuels plant or meet with industry lobbyists.
Critics of Cruz, whose has been rising in polls in a crowded field of Republican candidates, held a news conference Tuesday at Lincolnway Energy in Nevada. They accused him of abandoning 75,000 Iowans employed in the renewable fuels industry while supporting subsidies for the oil industry.
“Every candidate, good or bad, has respected Iowans and the caucus process by sitting down with us and learning about the RFS, except for Ted Cruz,” said Eric Branstad, executive director of America’s Renewable Future, a pro-biofuels lobby group. The federal government's Renewable Fuels Standard requires renewable fuels like ethanol to be blended into transportation fuels like gasoline.
Branstad was joined by former U.S. Sen. Rick Santorum, a longtime supporter of the Renewable Fuels Standard who is seeking the GOP presidential nomination. Santorum claimed that Cruz is supporting the oil industry over Iowa’s biofuels industry.
“They don’t want a competing product coming in and getting market share. That is the bottom line,” Santorum told reporters after touring the Lincolnway Energy plant here. The plant produces 60 million gallons of ethanol annually.
Last week, Cruz asked Iowa radio stations to stop running an advertisement sponsored by America's Renewable Future. The 60-second ad, entitled “Hypocrite,” claims Cruz has $700,000 in personal oil investments and that pro-Cruz super PACs received $25 million in donations from oil companies.
Rick Tyler, a spokesman for the Texas U.S. senator, said in a statement to The Des Moines Register last week, "It is blatantly false to suggest that Sen. Cruz wants to end the Renewable Fuel Standard while maintaining subsidies for oil. Cruz has repeatedly stated that he would end all energy specific subsidies, both ethanol and oil among others."
Cruz’s campaign issued a statement Tuesday that the Texas senator looks forward to America’s Renewable Future endorsing Cruz’s flat tax plan that eliminates all loopholes, stops corporate welfare, and specifically allows every company, including ethanol producers, to immediately expense all of their capital costs, treating everyone fairly, without subsidy.
The Dallas Morning News reports that Cruz has at least $365,000 in oil and gas investments, according to a July personal finance disclosure. Three Texas energy billionaires donated $25 million in total to super PACs backing Cruz’s presidential bid, the newspaper reported.
U.S. Rep. Steve King, R-Kiron, a strong supporter of the Renewable Fuels Standard, endorsed Cruz’s presidential candidacy last month, calling him “the Constitutional conservative who can restore the soul of America.” King said he wanted to do everything he could to support Cruz’ campaign for the White House.
Branstad said Tuesday that King has been a powerful ally for the renewable fuels industry and he hopes the Iowa congressman is sharing information with Cruz. But he expressed disappointment that Cruz has ignored “invitation after invitation” to discuss renewable fuels issues.
“He came to Iowa with his allegiance already established the oil industry, not Iowans and not our caucus process,” Branstad said.
This list of presidential hopefuls who have met with biofuels industry supporters includes 12 Republican candidates, plus Democratic White House hopefuls Hillary Clinton, Martin O’Malley and Bernie Sanders.
Read the original story: RFS Supporters Ramp Up Cruz Criticism
December 8, 2015
By Renewable Fuels Association
In a letter submitted Dec. 8 to the U.S. EPA, the Renewable Fuels Association urged the agency to take immediate administrative action to eliminate an arcane regulatory barrier that is impeding growth in the use of E15 and other higher-level ethanol blends.
“Many gasoline retailers have rejected E15 because EPA’s current gasoline volatility regulations make it nearly impossible for them to sell E15 to EPA-approved conventional automobiles year-round,” said Bob Dinneen, RFA President and CEO. “Most gas stations are unwilling to dedicate storage tanks and dispensing equipment to a fuel that they can only sell for part of the year.”
EPA’s current regulations, which grant a volatility waiver to E10 (referred to as the “1-psi RVP waiver”) but not to any other ethanol blends, have created an uneven playing field for E15 and other higher-level blends. According to the RFA letter, “The 1-psi RVP waiver—originally provided to expand the production and use of fuel ethanol—is now having the perverse effect of discouraging greater ethanol use in today’s gasoline market, and it is obstructing the successful implementation of important fuel and carbon reduction policies enacted since then, including the renewable fuel standard.”
Rather than asking EPA to extend the 1-psi RVP waiver to E15, RFA’s letter encourages the agency to take action to eliminate the relevancy of the waiver for E10 by requiring refiners to slightly lower the volatility of summertime conventional gasoline blendstock. This would ensure that retailers can freely offer E15 to conventional automobiles year-round. It would also clear the way for higher-level ethanol blends like E20 or E25 to meet applicable gasoline RVP requirements.
Anticipating familiar claims from the oil industry that such an administrative action would “raise gasoline prices,” RFA also submitted third-party analysis to EPA showing that lowering the volatility of gasoline blendstock by 1.0 psi in the summertime might be expected to add just $0.006 per gallon in refining costs. However, this cost would not likely be translated to retail prices because it would be offset by blending more ethanol (which, historically, has been priced well below gasoline blendstock at wholesale).
Moreover, reducing the volatility of gasoline blendstock to facilitate greater ethanol blending would have positive implications for air quality. A separate third-party analysis provided by RFA showed that lowering gasoline volatility by 1.0 psi would reduce emissions of carbon monoxide, nitrogen oxides, and volatile organic compounds.
In closing, the letter notes that “This action would improve air quality, remove arcane barriers to innovation and consumer choice in the retail fuel marketplace, simplify engineering of emissions control systems, and help facilitate compliance with renewable fuel standard requirements. In addition, removing the waiver would not noticeably affect refining costs.”
Read the full letter here.
Read the original story: RFA to EPA: New Gasoline Volatility Regulations Needed
December 6, 2015
Today, at the World Climate Summit under way in Paris, France, the Global Renewable Fuels Alliance (GRFA) in cooperation with (S&T)2 Consultants Inc., an internationally renowned energy and environmental consulting firm, released a new report “Green House Gas (GHG) Emission Reductions from World Biofuel Production and Use for 2015”.
The report was released to inform debate at World Climate Summit (WCS) event organized by the GRFA, the Biotechnology Industry Association (BIO) and EuropaBIO entitled: “Building a sustainable bioeconomy: harnessing the potential of bio-based products and fuels to mitigate climate change”. The purpose of the event is to:
- Provide informal input into the COP21 agenda from a range of bio innovation stakeholders
- Showcase the potential of biobased products and alternative low carbon fuels to help fight climate change
- Identify policy measures that can enable the low carbon economy and contribute to solving the problem of climate change
The report found that year after year the reduction in global GHG emissions from global ethanol production and use is increasing. The total GHG emission reductions forecast for 2014 is 169 million tonnes CO2 equivalent, which is bigger than the total GHG emissions in 28 Annex 1 countries.
“Biofuels like ethanol are the only cost-effective and commercially available alternative to crude oil and are proven to reduce harmful GHG emissions and help in the fight against climate change. There need be stronger policies to increase their use globally,” said Bliss Baker, President of the Global Renewable Fuels Alliance.
The report also includes production scenarios for 2030. Based on a conservative annual growth rate of 2.8% biofuel production and use emission savings could increase from 168.9 million tonnes per year in 2014 to 264 million tonnes CO2 equivalent in 2030. This represents a 56% increase in GHG emission reductions.
“This report sends a clear message to policy makers around the world that while the GHG emission reductions currently being delivered by biofuels are substantial, the sector can deliver much more” concluded Baker.
The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 90% of global biofuels productions. Through the development of new technologies and best practices, Alliance members are committed to producing renewable fuels with the smallest possible footprint.
Read the original release: Report: Biofuels Contribution to GHG Emissions Offsets Significant
December 7, 2015
By Representative Kristi Noem
It might surprise many of us, but there are a lot of people out in D.C. who don’t seem to know the difference between South Dakota and North Dakota.
I know my counterpart in North Dakota often gets the question: “Is that the state with Mount Rushmore?” No, that’s South Dakota. For me, the question is: “Are you the state with all of that oil?” No, that’s North Dakota, but while North Dakota has all that oil, South Dakota’s corn and soybean production plays its own role in America’s energy security.
Every year, South Dakota harvests more than 400 million bushels of corn and 100 million bushels of soybeans. These commodities provide a pathway toward North American energy independence that can help boost our economy and our national security.
Today, about one-third of the petroleum used in the United States is imported from foreign countries, according to the U.S. Department of Energy. Most of this petroleum is refined into gas or diesel. Especially with conflicts arising in energy-rich areas of our world, the need to decrease our reliance on foreign fuels grows every single day. Now is the time to double down on domestic energy production, but unfortunately, the Environmental Protection Agency (EPA) is looking to let off the gas.
In early 2014, the EPA proposed new Renewable Fuel Standard (RFS) volumes. These volume requirements, which impact corn-based ethanol and biodiesel alike, tell refineries how many gallons of renewable fuels should be blended into our overall supply. This gives both farmers and consumers more certainty and greater price stability.
The EPA’s initial proposal was very disappointing, as the agency moved to significantly roll back our commitment to ethanol and biodiesel. Not only could this curb production, but the move would send the wrong message to investors, risk jobs, and threaten the creation of more developed biofuels.
I, along with a bipartisan group of 30 lawmakers, reached out to the EPA shortly after their announcement. It was important that they reverse course.
When the final numbers were announced in late November, the RFS remained beneath the levels I believe are appropriate. Nonetheless, the EPA did adjust the requirements at least slightly higher because of the pressure we put on them.
Especially at a time when the Middle East remains so volatile, our commitment to homegrown renewable fuels should not be in doubt. While the EPA is backing down, I am not. In recent weeks, I introduced an extension of the biodiesel tax credit. This legislation would ensure that domestically produced biodiesel was given a $1-per-gallon tax credit through the end of 2016. The legislation has bipartisan support and I’m hopeful it can be wrapped into an end-of-the-year tax extenders package.
My number one responsibility is to keep the American people safe – protecting economic opportunities comes in at a close second. By throwing our support behind homegrown fuels rather than foreign oil, we are accomplishing both and creating a nation that is fueled by South Dakota in the process.
Read the original story: Keeping America fueled by South Dakota
Global Renewable Fuel Alliance
December 4, 2015
Press Release
Today, global transport emission have increased to 14% of the world’s greenhouse gas emissions and about a quarter of the total energy-related CO2 emissions. With the UN’s Intergovernmental Panel on Climate Change (IPCC) predicting that transport emissions could double by 2050, the need for preventative policy measures by world leaders is clear and urgent. According to the IPCC, transport’s growing emissions could be cut by 15-40% through “aggressive and sustained” policy measures, including reducing carbon intensity of fuels by substituting oil-based products with biofuels.
According to the International Energy Agency, by 2050, biofuels could provide 27% of the world’s total transport fuel and avoid around 2.1 gigatonnes of CO2 emissions per year, with biofuels eventually providing 23% of total emissions reductions in the transport sector. Sustainable biofuels, such as ethanol, can be used in existing vehicle fleet to reduce greenhouse gas emissions by 40-90% compared to fossil fuels and must be considered an important part of the toolkit to decarbonize transport.
Policies mandating the use of biofuels are now in place in around 64 countries worldwide and, in their Intended National Determined Contributions (INDC) plans, 36 countries that are attending December’s climate talks in Paris have highlighted biofuels use as a key component of their national climate action policies.
Biofuels are a key driver of clean technology innovation and a key part of the global agricultural complex, helping to reduce emissions, facilitating rural development and supporting food production, particularly in poorer regions. Further deployment of biofuels could help drive investment in low carbon technology and in agriculture, increase productivity, create new employment in rural areas, reduce our global reliance on crude oil and provide a stepping stone towards a genuine bio economy.
Representing over 330 biofuels and industrial biotechnology companies that are responsible for 90% of the world’s biofuels production, we reiterate our commitment to producing biofuels sustainably and call on the parties to the UNFCCC to acknowledge the benefits of sustainable biofuels and their contribution towards climate change mitigation and the reduction of greenhouse gas from transport.
We call on world leaders to support a global target for replacing at least 15% of the world’s total oil use in transport with sustainable biofuels by 2030, with a significant presence of advanced biofuels.
See original press release: Global Biofuels and Biotech Industries Unite in Call for Stronger Biofuels Policies to Help in Fight Against Climate Change
December 7, 2015
By
The EPA's Renewable Fuel Standard decision is either a step forward or backward, depending on your point of view.
The Environmental Protection Agency announced Nov. 30 it is setting the total renewable fuel volume at 18 billion gallons for 2016, up from the proposal of 17.4 billion made earlier this year, but down from the 22.25 billion gallons in statue.
Timothy Rudnicki, Minnesota Bio-Fuels Association executive director, said his crystal ball is foggy on the effect of the decision on the biofuels industry.
"But to me it sends the wrong signal," he said. "It sends a negative message, and that is you can't count on the law upon which to build the infrastructure or the production capacity because it will be ... it can be lowered to accommodate the petroleum interest."
The American Fuel and Petrochemical Manufacturers issued a statement saying the decision is "an attempt by EPA to placate the biofuels lobby."
The Renewable Fuel Standard began in 2006 after being enacted through the Energy Policy Act of 2005. The RFS requirements were modified through the Energy Independence and Security Act of 2007.
Ethanol production in the United States has jumped from 6.5 billion gallons in 2007 to 14.3 billion gallons in 2014 and biodiesel production has grown from 0.5 billion gallons to 1.46 billion gallons during the same time period, according to the Energy Information Administration.
In their executive summary, the EPA said "while some stakeholders commented that reductions from the statutory targets would lead to a stagnation in growth, we disagree with this view.
"We proposed a 2016 volume requirement for total renewable fuel that was 1.1 billion gallons greater than the proposed 2015 volume requirement — a significant level of growth in one year," the summary reads.
Rudnicki said it's interesting the EPA, in their executive summary, writes "renewable fuels represent an opportunity for the U.S. to move away from fossil fuels towards a set of lower GHG transportation fuels and a chance for a still-developing low GHG technology sector to grow."
The RFS has been about energy security and reducing greenhouse gas emissions since its inception, Rudnicki said. It's good for the country, consumers, the environment and the economy. A study recently found 18,600-plus jobs in Minnesota are supported by the biofuels industry.
"If the petroleum industry just accepted the RFS — we know the production capacity is there — we could be exceeding where we're at today in terms of greenhouse gas reduction," he said.
The way the RFS stands now, it's hard to plan as the targets keep changing.
"For the EPA to have tinkered with the RFS and the renewable volume obligations was a big mistake," Rudnicki said. "It's like a slippery slope. Will it be changed next year? Will they find some reason to change the rule they've already set?"
The American Fuel and Petrochemical Manufacturers hope for change.
"Today's rule is further proof that the RFS program is irreparably broken and that the only solution is for Congress to repeal it outright," AFPM president Chet Thompson said in a statement.
Read the original story: How Will RFS Decision Affect the Biofuel Industry?