Do We Still Need a Renewable Fuel Standard?
September 19, 2016
By Anne Steckel
Headlines tell us the world is awash with oil. Gas costs less than bottled water in many places, and petroleum markets are in a prolonged slumpthat’s wreaking havoc on the industry’s bottom line.
But my instinct tells me this won’t last long. I’ve lived long enough to have seen this movie before. Gas prices fall, and gas prices rise. The only constant is that consumers, and Congress, can’t do much about it in a world dependent on oil.
To hear the oil industry tell it, the status quo is just fine. We have more than enough petroleum to continue our dependence on oil for the foreseeable future, they argue. The current “era of abundance,” they say, has eliminated the need for alternative fuels and the policies supporting them such as the Renewable Fuel Standard (RFS).
Nothing could be further from the truth, and we shouldn’t let the fleeting benefits of today’s low oil prices cloud our judgment. Instead of knee-jerk energy policy reacting to the oil markets, we need stable, long-term policies like the RFS that help develop new technologies, diversify American energy supplies and protect consumers.
Anyone doubting this should look to the International Energy Agency’s most recent monthly oil market report, which found that the Middle East’s share of the world market has climbed recently to 35 percent – the highest it’s been since the late 1970s. This comes after OPEC nations, Russia and others have openly manipulated supplies to maintain their dominance on the global market.
Imagine if other industries did this – if nations openly colluded to shape the cost of medicine or food. The world would be outraged, and conspirators would go to jail. Yet with oil – the commodity that most shapes the health of the global economy – we’ve resigned ourselves to state-supported price-fixing. It’s because we are dependent on it. We have no choice.
This is the same oil market that US oil lobbyists argue is a free market. Big Oil routinely maintains that we should simply let the market work – that we don’t need policies supporting alternative fuels. Never mind that there is no true free market in oil, and that even when we drill more at home, prices are set on the heavily manipulated global market.
This also ignores the fact that because our economy is so dependent on energy, Congress has wisely adopted policies for more than a century to develop diversified domestic production. This includes tax incentives, low-cost loans, federal research, and grants for all manner of energy industries, including oil and gas, nuclear power, wind and solar, coal, and fracking.
Without those polices, we wouldn’t be the global leader in energy production that we are today.
The RFS, signed into law by President George W. Bush in 2005 with bipartisan congressional support, is a continuation of that strategy that is doing the job. We now get nearly 10 percent of our transportation fuel from clean, renewable sources, and that percentage will only rise if we stay the course.
And it’s not just about corn ethanol. The industry I work for, biodiesel, has grown from a small, niche business into a commercial-scale industry with production plants in almost every state in the country. Last year, Americans consumed a record of more than 2 billion gallons of biodiesel, made from a variety of resources such as soybean oil and recycled cooking oil.
Along with diversifying the market, biodiesel is creating American jobs and economic activity. It significantly reduces greenhouse gas emissions – by 57 percent to 86 percent compared with petroleum diesel, according to the EPA, qualifying it as an Advanced Biofuel under the RFS.
This is a tremendous success for the country that we should all support – regardless of the latest price of a barrel of oil. We all know that price will rise again, and when it does the public will demand that Congress do something about it. Nothing changes over night, but the RFS is smart policy that already is shaking up the oil monopoly and giving consumers a more competitive market.
Steckel is Vice President of Federal Affairs for the National Biodiesel Board. With nearly 200 member companies, NBB is the leading U.S. trade association representing biodiesel and renewable diesel.
Read the original story: Do We Still Need a Renewable Fuel Standard?
Gramsie Corner Mart Minnoco
Shoreview,Minnesota
United States 55126
Little Dukes Ramsey
Ramsey,Minnesota
United States 55303
Little Dukes Long Prairie
Long Prairie,Minnesota
United States 56347
New York Proposes Updated Fuel Regulations Allowing for E15
September 06, 2016
By Erin Voegele
On Aug. 24, the New York Department of Agriculture and Markets published a proposed rule in the New York State Register proposing to update the statement’s fuel regulations to allow for the sale of E15 in model year 2001 and newer vehicles.
In addition for allowing for the sale of E15 blends, the proposed rule also includes a provision that will require ethanol blends to comply with certain labeling requirements required by federal regulation. The proposal states retailers “must post the octane rating of [all] automotive gasoline, except gasoline-ethanol blends containing more than 10 percent and not more than 15 percent ethanol by volume.” This must be accomplished by “putting at least one label on each face of each gasoline dispenser through which” gasoline is sold. If two or more kinds of gasoline with different octane ratings are sold from a single dispenser, the retailer must but separate labels for each kind of gasoline on each face of the dispenser. In addition, the proposed rule will require automotive gasoline to meet updated ASTM International standards.
Growth Energy has spoken out in support of New York’s proposed move to E15, noting the state consumes more than 5.5 billion gallons of gasoline each year, making it the fourth largest gasoline market in the U.S. Growth Energy also said it has worked extensively with Poet over the past two years to update the regulation.
“This proposal marks a major victory for consumers, who would gain access to cleaner, more affordable choices at the pump,” said Emily Skor, CEO of Growth Energy. “Biofuel blends, like E15, are already used on the racetrack at Watkins Glen, and if the proposal is approved, drivers will be able to experience the same economic, environmental and performance-enhancing benefits. We appreciate the department’s work on this regulation to reflect federal approval of E15 and we look forward to working with retailers across the Empire State to quickly get E15 into the market.”
“E15 represents an exciting opportunity for New Yorkers to select affordable, clean-burning biofuels produced at plants like ours,” added Timothy Winters, chief financial officer of Western New York Energy. “Back in 2004, we set out with a mission to harness the power of Western New York’s renewable resources to provide consumers with a high-octane, earth-friendly option at the pump. With higher blends like E15 in the marketplace, we can continue to help drivers save money and improve the quality of the air we all breathe, all while creating jobs and growing our local economy.”
“E15 is a 21st century fuel for 21st century vehicles and is approved for nearly 90 percent of the cars on the road today,” continued Skor. “By increasing biofuel blends, we can reduce our dependence on foreign oil, cut carbon emissions, and limit the need for toxic gasoline additives associated with cancer, water contamination and smog. New York state has long been a pioneer in clean energy, and this proposed regulation change is one more step toward sustainable economic growth for New York communities, farmers, and drivers, as well as a fair and open fuel marketplace.”
According to information published in the state register, a public comment period on the proposed rule will be open for 45 days. Additional information is available on the New York State Register website.
Read the original story: New York Proposes Updated Fuel Regulations Allowing for E15
Wayne Standardizes Offering for All North American Retail
Austin, Texas – August 30, 2016 - Wayne Fueling Systems (“Wayne”), a global provider of fuel dispensing, payment, automation, and control technologies for retail and commercial fuel stations announces that all Wayne North American retail fuel dispensers will be supplied as compatible and ULListed to E25 (25 percent ethanol and 75 percent petroleum) as a standard feature. The shift from the standard Underwriters Laboratory Listing of E10 to E25 is effective immediately for Wayne Ovation™ fuel dispensers and by year-end for the Wayne Helix™ family of dispensers.
With the potential shift to higher ethanol blends necessary to meet future fuel requirements brought about by more stringent CAFE standards and GHG reductions by 2025, this move is an expression of Wayne’s continued intent of supplying its customers with the most flexible, reliable and future-proof equipment options. This follows the same thinking that led to the development of Wayne’s dual blending series, which enabled the maximum number fuel grade selections to support mid-level ethanol blends.
“We are pleased to be the first manufacturer to offer E25-Listed dispensers as standard to our North American dispenser product offering, reflecting the growing interest from our customers to prepare for any and all necessary changes to the fueling infrastructure in the future,” said Wayne VP of Products and Services, Tom Cerovski. At this time, 90 percent of dispensers in the industry are only certified to dispense E10 fuel.
Fuel Dispensers to E25
UL-Listing of E25 will be standard offering for all Wayne retail fueling dispensers.
This standardization is effective immediately for Wayne Ovation™ fuel dispensers and by yearend for Wayne Helix™ fuel dispensers
For more information on Wayne’s Ovation and Helix fuel dispensers, go to www.wayne.com.
Record Crop, Record Ethanol Production Underscore Importance of Getting RFS Back on Track
August 12, 2016
America’s farmers are poised to harvest a record corn crop this fall and achieve the highest yield per acre in U.S. history, according to U.S. Department of Agriculture (USDA) estimates released today. Meanwhile, the U.S. ethanol industry is on pace to produce a record amount of clean-burning renewable fuel, according to Department of Energy (DOE) projections released Tuesday. The Renewable Fuels Association (RFA) said the government reports highlight the importance of getting the Renewable Fuel Standard (RFS) back on its statutory track in 2017.
Today’s USDA report projects the 2016 corn crop at 15.15 billion bushels, with a record average yield of 175.1 bushels per acre.
“U.S. farmers have again risen to the challenge to meet all demands for feed, food and fuel,” said Bob Dinneen, president and CEO of the RFA. “They should be congratulated for producing what is primed to be the third record-breaking crop in just the last four years. The innovation, technology adoption, and productivity we’ve seen in the corn sector over the past decade has been nothing short of astounding.”
Corn ending stocks for the 2016/17 marketing year are projected at 2.4 billion bushels — the highest in 29 years. Meanwhile, prices are expected to average just $3.15 per bushel, the lowest in 10 years. Global grain supply is also set to establish a new record and grain stocks are likely to hit historic highs. U.S. ethanol is expected to consume just 2.9 percent of world grain supply on a net basis. Dinneen said today’s USDA estimates “snuff out the last flickering embers of the outrageous food vs. fuel debate.”
As harvest ramps up in fields across the country, corn demand from the ethanol sector is ramping up as well. DOE projects 2016 ethanol production will average 980,000 barrels per day — or 15.1 billion gallons. The agency also is projecting record ethanol consumption of 14.3 billion gallons. “This is shaping up to be an historic year,” Dinneen said. “Just a decade ago, visionary leaders in the corn and ethanol industries established a goal to produce 15 billion bushels of corn and 15 billion gallons of ethanol by 2015. Ten years later, our nation’s farmers and ethanol producers have made that bold vision into a reality.”
However, Dinneen warned, the Environmental Protection Agency’s (EPA) disappointing proposal for 2017 Renewable Fuel Standard (RFS) volumes is exacerbating the predicted drop in corn prices and farm income this year. EPA’s proposal to needlessly reduce the 2017 RFS requirement for “renewable fuel” from 15.0 billion gallons to 14.8 billion gallons reduces demand for corn at a time when corn stocks are rising and prices are slumping to levels below the cost of production.
“This is not the time to undermine demand for corn and tie the hands of the American farmer. Farmers and ethanol producers made investments and business decisions based on the 2007 law that expanded the RFS, and they expected EPA to follow Congress’ intent in implementing the program,” Dinneen said. “EPA’s proposal is limiting market opportunities for U.S. farmers at a time when the agricultural economy needs a boost. We again urge EPA and the Administration to finalize a rule that truly gets the RFS back on track and supports rural America.”
Read the original story: Record Crop, Record Ethanol Production Underscore Importance of Getting RFS Back on Track
#ACE2016 Hears about Booming Minnesota #Ethanol Industry
August 9, 2016
By Joanna Schroeder
The ethanol industry packed the room for the opening night reception of the 20th annual American Coalition for Ethanol (ACE) Conference in Minneapolis, Minnesota where Minnesota Bio-Fuels Association Executive Director Timothy Rudnicki talked about the booming ethanol industry in his state.
“Within the last year and a half, we’ve seen more E15 stations become available, and that means more fuel choice for consumers,” said Rudnicki. “What we’ve found for the most part is when consumers have a choice between a clean, green renewable fuel versus petroleum they will take the renewable fuel.”
Rudnicki says because education is so important, they have developed new communications tools, such as a biofuel station locator app. “We’ve also implemented some direct consumer campaigns using social media tools to alert consumers to where retailers are having special events to promote E15 and higher blends, but more importantly, to give consumers the confidence in knowing what they’re buying is good for their engines, the environment, and the economy – and for the most part, ten cents less per gallon on E15 compared to regular,” said Rudnicki.
Read the original story and listen to the interview: #ACE2016 Hears about Booming Minnesota #Ethanol Industry
Nissan Pushes Forward With Ethanol-Based Fuel Cell Development
August 4, 2016
By Justin King
As promised, Nissan's solid-oxide fuel-cell (SOFC) technology has progressed from the laboratory to a prototype vehicle.
The company has modified a e-NV200 van to run on bio-ethanol electric power, demonstrating a unique fuel-cell system that conveniently avoids the need to store or refuel high-pressure hydrogen.
The SOFC powertrain still requires hydrogen and oxygen to generate electricity, but the vehicle integrates a miniaturized chemical processing system to extract hydrogen locally while underway. A 30-liter tank holds ethanol or an ethanol-water blend.
"Due to the easy availability of ethanol and low combustibility of ethanol-blended water, the system is not heavily dependent or restricted by the existing charging infrastructure, making it easy to introduce to the market," the company said in a statement. "In the future, people may only need to stop by small retail stores to buy fuel off the shelf."
The prototype van is said to achieve an estimated driving range of around 373 miles before requiring an ethanol fill-up. The hydrogen extraction system and fuel-cell stack can produce up to 5kW of power, diverted to a 24-kWh battery.
Nissan suggests the technology could be commercialized by the end of the decade.
Read the original story: Nissan Pushes Forward With Ethanol-Based Fuel Cell Development
Jim Wessing: EPA Should Maintain Renewable Fuel Standard
July 26, 2016
By Jim Wessing
Sens. Lindsey Graham (R-S.C.) and Elizabeth Warren (D-Mass.) don’t agree on much — but then again, U.S. senators from different parties rarely seem to agree on anything these days.
That’s why it was encouraging to see democracy at work, when leaders from across the political spectrum recognized the importance of the Renewable Fuel Standard, and decided to work across the aisle to make the program a success. That’s exactly what happened last month among 39 bipartisan champions of the RFS — including Tammy Baldwin (D-Wis.) — who sent a joint letter to the Environmental Protection Agency urging the administration to stay true to the goals of America’s best renewable energy policy.
In the letter, lawmakers from Connecticut to Hawaii made a simple request to the EPA: follow the law. Since 2005, the RFS has required oil companies to offer consumers renewable fuel blends at the gas pump. As a result, 97% of the fuel in every tank contains some amount of ethanol or other biofuel, grown right here in the United States. That renewable share is meant to grow, weaning America off foreign oil, while keeping the air clean and supporting a flourishing homegrown energy sector to replace exporters in the Middle East.
The strategy has been a clear success. Thanks to the RFS, growth in the biofuels sector now reverberates throughout our economy. America’s ethanol industry supports 28,000 manufacturing jobs across the United States, and many of those jobs are among manufacturers of equipment farmers use to grow, maintain and harvest feedstocks for ethanol production.
It also turns out that ethanol is the least expensive way to boost the octane in fuel, allowing for more efficient engine performance and eliminating the need for the kind of poisonous additives that refiners used in the past, such as MTBE and lead.
Fortunately, our senators seem to see the advantages of not relying on oil from the Middle East, if for different reasons. Some like that it attracts investments that would otherwise go to China or Brazil and that it gives America greater leverage against petroleum ministers in Russia and Iran. They also like that it supports American jobs and saves consumers anywhere from 50 cents to $1 per gallon during periods of high oil prices.
On the other side of the political spectrum, the RFS is part of the green energy revolution. Biofuels are helping to decarbonize America’s transportation sector and clear the air of smog, particulates and ozone. The average corn-based ethanol slashes greenhouse gas emissions by 34% compared to gasoline, while some of the newer cellulosic biofuels are essentially carbon neutral, according to Department of Energy-sponsored research.
Whatever their motivations, these senators demonstrated that good policy doesn’t always have to fall prey to partisan power struggles. The question now is whether the EPA is listening. Earlier this year, the agency proposed cutting 2017 conventional biofuel targets by 200 million gallons. The proposal is still under review, and with the end of an official comment period this week, regulators have until Nov. 30 to issue a final rule.
The choice policymakers make now will determine how painful the next spike in gasoline prices will be. When that happens, it’ll be too late for new oil drills or fresh windmills to protect our economy, but those who reached across the aisle to support America’s most successful green energy program will deserve our thanks for thinking ahead.
That’s good news for both consumers and the manufacturers across America who support thousands of jobs thanks to the RFS.
Jim Wessing is president of the Kondex Corp., an equipment manufacturer in Lomira.
Read the original story: Jim Wessing: EPA Should Maintain Renewable Fuel Standard