In the News
July 28, 2014
By Jerry Hagstrom
WASHINGTON — White House counselor John Podesta told a group of senators July 24 that reduced volumetric requirements for the Renewable Fuel Standard in 2014 are imminent, Sen. Al Franken, D-Minn., said.
Franken said Podesta signaled that the volumetric requirements will be higher than in the Environmental Protection Agency’s initial proposal, but not as high as they would be if EPA followed the volumetric requirements established in the law that is the basis for the RFS.
EPA reduced the requirement for corn-based ethanol after complaints that ethanol use was causing corn prices to rise and higher blends would be required because overall gas use is down.
The agency also reduced the biodiesel and cellulosic biofuel requirements on the basis that industries might not be able to produce enough fuel.
EPA Administrator Gina McCarthy told Agweek she has not established a date to release the volumetric requirements.
“I realize that this particular year is a difficult one,” McCarthy said. “EPA tried to get all the numbers out in the supply system. I think the biofuels industry knows we are working hard, otherwise it wouldn’t take so long.”
The Obama administration, she said, would continue to push the biofuels industry forward.
McCarthy declined to comment on the Podesta meeting because she was not present.
Franken said Podesta came to his office to meet with him and nine other senators, including Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich.
“We made our case that we believe that the levels they set send the wrong signals to the market,” Franken said.
But Franken said he emphasized that EPA’s plan to cut the volumetric requirement for biodiesel to 1.28 billion gallons would be particularly onerous because the industry produced almost 1.8 billion gallons last year.
Franken said the senators told Podesta the administration should retain higher standards because biofuels are domestically produced and create jobs. They also told him the oil industry’s arguments against higher levels of biofuels are wrong and that the oil industry is doing everything in its power to stop gas stations from selling biofuels.
Oil companies have been putting pressure on gas stations not to put in the blender pumps needed to market the fuel, while independents are putting them in, Franken said.
“We can go to E15,” Franken said, adding NASCAR has already proven the fuel works. E15 can be used in all cars made after 2001, he said.
“We think the blend wall is an artificial term,” Franken said, referring to the oil industry’s argument against higher levels of biofuels.
“Oil companies don’t like ethanol, they need it for oxygenation, but any more ethanol is a threat to them, less profits for them. They are doing everything they can to prevent the infrastructure from going into place. It is chicken and egg and an anti-trust thing. Oil companies are telling their gas stations not to put in the blender pumps.”
EPA proposed total renewable fuel at 15.21 billion gallons and cellulosic biofuel standard at 17 million gallons, significantly lower than the original target of 1.75 billion gallons, advanced biofuels at 2.2 billion gallons, and maintaining the biomass-based diesel standard for 2014 and 2015 at the 2013 level of 1.28 billion gallons.
Attending the meeting in addition to Franken and Stabenow were Sens. Heidi Heitkamp, D-N.D., Amy Klobuchar, D-Minn., Tom Harkin, D-Iowa, Patty Murray, D-Wash., Dick Durbin, D-Ill., Maria Cantwell, D-Wash., Sheldon Whitehouse, D-R.I., and Joe Donnelly, D-Ind.
Read the original story here : Senators Push To Maintain RFS
WASHINGTON — White House counselor John Podesta told a group of senators July 24 that reduced volumetric requirements for the Renewable Fuel Standard in 2014 are imminent, Sen. Al Franken, D-Minn., said.
Franken said Podesta signaled that the volumetric requirements will be higher than in the Environmental Protection Agency’s initial proposal, but not as high as they would be if EPA followed the volumetric requirements established in the law that is the basis for the RFS.
EPA reduced the requirement for corn-based ethanol after complaints that ethanol use was causing corn prices to rise and higher blends would be required because overall gas use is down.
The agency also reduced the biodiesel and cellulosic biofuel requirements on the basis that industries might not be able to produce enough fuel.
EPA Administrator Gina McCarthy told Agweek she has not established a date to release the volumetric requirements.
“I realize that this particular year is a difficult one,” McCarthy said. “EPA tried to get all the numbers out in the supply system. I think the biofuels industry knows we are working hard, otherwise it wouldn’t take so long.”
The Obama administration, she said, would continue to push the biofuels industry forward.
McCarthy declined to comment on the Podesta meeting because she was not present.
Franken said Podesta came to his office to meet with him and nine other senators, including Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich.
“We made our case that we believe that the levels they set send the wrong signals to the market,” Franken said.
But Franken said he emphasized that EPA’s plan to cut the volumetric requirement for biodiesel to 1.28 billion gallons would be particularly onerous because the industry produced almost 1.8 billion gallons last year.
Franken said the senators told Podesta the administration should retain higher standards because biofuels are domestically produced and create jobs. They also told him the oil industry’s arguments against higher levels of biofuels are wrong and that the oil industry is doing everything in its power to stop gas stations from selling biofuels.
Oil companies have been putting pressure on gas stations not to put in the blender pumps needed to market the fuel, while independents are putting them in, Franken said.
“We can go to E15,” Franken said, adding NASCAR has already proven the fuel works. E15 can be used in all cars made after 2001, he said.
“We think the blend wall is an artificial term,” Franken said, referring to the oil industry’s argument against higher levels of biofuels.
“Oil companies don’t like ethanol, they need it for oxygenation, but any more ethanol is a threat to them, less profits for them. They are doing everything they can to prevent the infrastructure from going into place. It is chicken and egg and an anti-trust thing. Oil companies are telling their gas stations not to put in the blender pumps.”
EPA proposed total renewable fuel at 15.21 billion gallons and cellulosic biofuel standard at 17 million gallons, significantly lower than the original target of 1.75 billion gallons, advanced biofuels at 2.2 billion gallons, and maintaining the biomass-based diesel standard for 2014 and 2015 at the 2013 level of 1.28 billion gallons.
Attending the meeting in addition to Franken and Stabenow were Sens. Heidi Heitkamp, D-N.D., Amy Klobuchar, D-Minn., Tom Harkin, D-Iowa, Patty Murray, D-Wash., Dick Durbin, D-Ill., Maria Cantwell, D-Wash., Sheldon Whitehouse, D-R.I., and Joe Donnelly, D-Ind.
- See more at: http://www.agweek.com/event/article/id/23743/#sthash.d1rS0b5G.dpufJuly 25, 2014
For more than three years, NASCAR has run on a race fuel blended with 15 percent American Ethanol, Sunoco Green E15. This Sunday at the Brickyard here in Indianapolis, one of the world's most historically significant tracks, NASCAR will reach a fittingly historic milestone -- 6 million miles competitive racing on the bio-fuel.
"NASCAR conducted an exhaustive analysis before making the seamless transition to Sunoco Green E15, a race fuel blended with 15 percent American Ethanol," said Brian France, NASCAR Chairman and CEO. "As we eclipse 6 million tough competition miles across our three national series, we can definitively say this renewable fuel stands up to our rigorous racing conditions while significantly reducing our impact on the environment. We are proud to celebrate this milestone at Indianapolis Motor Speedway along with our partners at the National Corn Growers Association and Growth Energy."
At a ceremony in Indianapolis today, Richard Childress, chairman and CEO of Richard Childress Racing; Tom Buis, CEO at Growth Energy; and Ken Parrent, director of biofuels at Indiana Corn Marketing Council, gathered to recognize the upcoming achievement.
The 6-million mile mark is especially significant because it mirrors the 6 million miles of testing conducted by the U.S. Department of Energy to initially approve E15 for all light duty cars and trucks, model year 2001 and newer. When this milestone is reached, E15 will have been proven as a high performance fuel on both the road and the track. With another 6 million miles of NASCAR real-world racing under its belt, E15 will be definitively established as a reliable, dependable and safe fuel that is environmentally friendly, high performance and a less expensive option for consumers.
"Ethanol-blended fuel is greener, cleaner and homegrown. It reduces our dependence on foreign oil, creates jobs right here at home and helps improve our environment. We want consumers to know that E15 is a safe, high performance and reliable option for them that is less expensive and supports hometown jobs when they fill up at the pump," Buis said. "We are excited to celebrate this milestone of 6 million miles raced on Sunoco Green E15 at NASCAR here in Indiana."
In 2011, NASCAR and American Ethanol partnered to bring E15 to the sport. Since the beginning of the 2011 season, Sunoco Green E15 has fueled every car and every truck in each of NASCAR's national race series. The introduction of Sunoco Green E15 has been a pivotal part of the NASCAR Green initiative, and has successfully increased horsepower and decreased emissions for the sport.
Read the original story here : NASCAR Reaches 6 Million Miles On Sunoco Green
This month, we spotlight U.S. Energy Services, a leading energy management services provider for ethanol producers in the country. Read our interview with Casey Whelan, Vice President of Strategic Initiatives at U.S. Energy, below.
Q. Please tell us about U.S. Energy Services.
A. U.S. Energy Services is a premier energy management company, positioned as a leading expert in analyzing, procuring and managing the energy requirements for large end users. U.S. Energy’s mission is to be our clients’ long-term, preferred energy manager by providing best-in-class energy related services to commercial, industrial, and institutional clients. We create competition between energy suppliers to ensure that our clients pay the lowest possible price. Managing the energy needs of over 3,500 North America sites, our customer list includes half of all the ethanol plants in the United States. U.S. Energy is differentiated by providing unique and specialized services not often offered by competitive energy management companies, such as:
Risk management integrated with physical procurement
Consulting and site development services
Natural Gas and electric portfolio management
LNG, CNG, Ethanol and Biogas services
Sustainability programs
Q. Please tell us about your company's role within the ethanol industry and why the company is committed to supporting the ethanol industry now and in the future?
U.S. Energy has participated in the ethanol and biodiesel space for two decades. We entered the industry in the mid 1990’s working with Heartland Corn, who utilized dry mill technology, and Minnesota Corn Processors, who is a wet mill producer. Since that time, we have worked with more than 100 ethanol plants helping them design and develop energy infrastructure such as natural gas pipelines.
We provide on-going energy management services, mostly in the areas of natural gas and electricity, such as competitive procurement, price risk management, data management, tariff reviews, and infrastructure consulting. We are a committed partner in helping the industry thrive.
Q. From your perspective, what would you like consumers to know about the ethanol industry and the fuel it produces?
A. The ethanol industry produces product which the U.S. needs not only from an energy perspective, but also from an economic perspective. Over the last twenty years, we have visited scores of rural locations where owners have invested in building ethanol plants. These plants have provided significant economic enhancements to the local community.
The ethanol producer’s increased demand for raw product flows directly back to the neighboring residents in the form of higher pricing and more liquid markets for local farmers, lower unemployment and higher labor rates for non-farmers, as well as new restaurants, grocery stores, and other residual businesses surrounding plant activities. Beyond the local community, the benefits of domestically produced ethanol include environmental advantages as well as a reduced dependence on foreign oil.
Q. What do you think is needed for E15 availability to grow?
A. Two important factors are at play in regard to growing E15 usage. First, the EPA must approve all vehicles to utilize E15. This action offers both environmental benefits as well as economic growth for the ethanol industry by providing additional incentive for fuel dealers to provide E15 at the pump. Second, automobile manufacturers must warrant the use of E15 in all vehicles. The threat of a voided warranty de-incentivizes drivers to use E15, and without this component in place, E15 will never reach its full potential.
Q. What do see as the ethanol industry's biggest challenge?
A. The biggest challenge for the industry is continued access to the market. The ethanol industry is trying to push their product into a competitive space occupied by major oil interests. Without federal legislation regarding the use of ethanol in our vehicles, we will limit access to the marketplace leaving environmental and economic barriers in place. If E15 mandates are put in place at a federal level, the Minnesota state legislature would fall in line. Public opinion weighs in as well – negative E15 press in the past has influenced adoption on a broad scale.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. Ethanol is a critical component to the current and future success of the farming industry. The trend lines for corn yield continue to increase – more and more product is available every year. Meanwhile, domestic harvests outweigh food consumption making the ethanol industries demand for corn vital to the United States’ agricultural industry. Every Btu of ethanol produced in the U.S is one less Btu of oil we import from overseas. There is a robust future ahead for the industry as it continues to develop, implement and commercialize advanced biofuels. Progress, however, will be slow.
July 24, 2014
By Ayesha Rascoe
The U.S. ethanol industry pushed back on Wednesday against what they called a "one size fits all" approach to proposed federal rules for shipping fuel by rail, saying regulators must distinguish between the often corn-based biofuel and crude oil.
Their calls follow an unveiling by the U.S. Department of Transportation of proposed safety features for new tank cars transporting fuel, and the phasing out of older cars considered unsafe.
Developed in response to a string of fiery railcar accidents involving crude oil cargoes, the new rules would also apply to shipments of ethanol.
Biofuel groups said treating both fuels the same is a mistake.
"We shouldn't be forced to pay the bill for somebody else's problem," said Monte Shaw, executive director of the Iowa Renewable Fuels Association.
Over the last 18 months, at least a dozen trains carrying crude oil have derailed. Six of those accidents led to spills and major fires, and one caused the death of 47 people in Lac-Megantic, Quebec.
The U.S. ethanol industry has about 29,000 railcars in its service. The average age of its fleet is nine years old, with each car expected to be in service for 40 to 50 years.
Shaw said his group supports additional regulations to strengthen railcar safety, especially measures that would help prevent accidents, but that new rules should take into account the differences between ethanol and crude oil.
Ethanol is less volatile as crude oil, is biodegradable and has a 99.997 percent rail safety record, according to the national Renewable Fuels Association.
"Unlike oil from fracking, ethanol is not a highly volatile feedstock of unknown and differing quality and characteristics being shipped to a refinery for commercial use," said Bob Dinneen, president of the RFA.
The groups acknowledged that rail transport of ethanol does not come without risks.
In 2009, a train carrying ethanol derailed in Cherry Valley, Illinois, and caught fire, killing a person in a car nearby and injuring several others.
After that accident the National Transportation Safety Board in 2012 recommended safety improvements for certain railcars transporting ethanol and crude oil.
Shaw said the government should look at what makes sense for ethanol as opposed to "one size fits all."
Read the original story here : Ethanol Needs Separate Treatment In U.S. Rail Rules - Biofuel Groups
July 22, 2014
By Jim Spencer
Democratic U.S. Sen. Amy Klobuchar of Minnesota has joined with Republican colleague Sen. Charles Grassley of Iowa to push federal investigations of alleged restrictions on the sales of ethanol by the nation's major oil companies.
The senators cited a recent report by the Renewable Fuels Association, a trade group representing the ethanol industry, that claims name-brand oil companies unfairly limit sales of ethanol at service stations selling their products.
Klobuchar and Grassley have written to U.S. Atty. Gen. Eric Holder and Federal Trade Commission Chairwoman Edith Ramirez asking them to investigate a number of charges for possible legal and regulatory violations. The senators have asked for "a substantive evaluation of your conclusions regarding possible anticompetitive behavior by certain oil companies and any proposed solutions or actions the DOJ and FTC will take to resolve this issue."
Among charges leveled by the renewable fuels group at Big Oil:
Brand name service stations can only sell products provided by the oil company.
Sales quotas of branded products discourage the sale of ethanol.
Requirements to store multiple grades of branded gas eliminate the ability to store and sell ethanol.
Oil company demands that ethanol pumps be labeled with "intimidating" warnings about how the fuel can hurt engines.
Forcing dealers to isolate E85 pumps that deliver fuel that is 85 percent ethanol.
Read the original story here : Klobuchar, Grassley Want Probe Of Ethanol Sales Restrictions
See also:
U.S. Senators Press For Probe Of Report That Oil Companies Blocked Ethanol
RFA Scores Retailers For E85, E15 Offerings ; Big Oil Gets An 'F'
RFA Reports Details Big Oil's Tactics In Preventing E85, E15 Sales
July 22, 2014
Ethanol produced in the United States has been the most economically competitive motor fuel in the world over the past four years and has played an important role in reducing consumer fuel costs, according to a new analysis released today by the Renewable Fuels Association (RFA).
The analysis, conducted by ABF Economics, examined actual wholesale prices paid for ethanol, gasoline, and alternative octane sources in several key U.S. and world markets in the 2010–2013 timeframe. Based on the market data, the report concludes that “…U.S.-produced ethanol is an exceptionally competitive additive and fuel source…” and that “…U.S. ethanol has emerged as the lowest cost transportation fuel and octane source in the world over the past several years.”
Commenting on the analysis, RFA President and CEO Bob Dinneen said, “As proven by the recent boom in exports, American-made ethanol has evolved into the most cost competitive transportation fuel and octane source in the world. Through rapid technology adoption and innovation, U.S. producers have proudly earned the distinction of being the global leader and low-cost producer of clean-burning, renewable ethanol.”
“Despite the fact that ethanol offers greater consumer choice at a lower cost, entrenched petroleum companies continue to erect barriers that deny access to larger volumes of renewable fuels,” Dinneen continued. “In a truly free market, consumers would always choose a fuel that is produced domestically, is better for the environment and climate, and costs much less than gasoline. Unfortunately, free markets only exist in text books, underscoring the need for monopoly-breaking policies like the Renewable Fuel Standard.”
The ABF Economics study found that even after accounting for transportation costs to the reference markets of Los Angeles, Chicago, and New York, “The ‘spread’ between ethanol and RBOB [gasoline] has averaged 30 to 40 cents per gallon over the past four years in these three key markets, and the difference averaged more than 60 cents per gallon in 2012.”
As a result of this cost differential, “…ethanol blended with RBOB to produce reformulated gasoline at a 10 percent (E10) blend has reduced the cost of motor fuel to consumers.” Importantly, the author notes that ethanol’s impact on gas prices goes far beyond the wholesale price spread: “This does not include the additional downward impact ethanol has on gasoline prices as a result of extending supplies and reducing demand for crude oil.”
In closing, the study indicates that the competitiveness of U.S. ethanol will only improve in the future: “This competitive advantage is expected to increase further, as U.S. ethanol and feedstock producers adopt new technologies and crude oil prices continue to trend higher.”
Click here to read the report "The Economic Competitiveness Of U.S. Ethanol."
To read the original story, go to : New Analysis: U.S. Ethanol Is Lowest Cost Motor Fuel, Octane Source On The Planet
Ethanol produced in the United States has been the most economically competitive motor fuel in the world over the past four years and has played an important role in reducing consumer fuel costs, according to a new analysis released today by the Renewable Fuels Association (RFA).
The analysis, conducted by ABF Economics, examined actual wholesale prices paid for ethanol, gasoline, and alternative octane sources in several key U.S. and world markets in the 2010–2013 timeframe. Based on the market data, the report concludes that “…U.S.-produced ethanol is an exceptionally competitive additive and fuel source…” and that “…U.S. ethanol has emerged as the lowest cost transportation fuel and octane source in the world over the past several years.”
Commenting on the analysis, RFA President and CEO Bob Dinneen said, “As proven by the recent boom in exports, American-made ethanol has evolved into the most cost competitive transportation fuel and octane source in the world. Through rapid technology adoption and innovation, U.S. producers have proudly earned the distinction of being the global leader and low-cost producer of clean-burning, renewable ethanol.”
“Despite the fact that ethanol offers greater consumer choice at a lower cost, entrenched petroleum companies continue to erect barriers that deny access to larger volumes of renewable fuels,” Dinneen continued. “In a truly free market, consumers would always choose a fuel that is produced domestically, is better for the environment and climate, and costs much less than gasoline. Unfortunately, free markets only exist in text books, underscoring the need for monopoly-breaking policies like the Renewable Fuel Standard.”
The ABF Economics study found that even after accounting for transportation costs to the reference markets of Los Angeles, Chicago, and New York, “The ‘spread’ between ethanol and RBOB [gasoline] has averaged 30 to 40 cents per gallon over the past four years in these three key markets, and the difference averaged more than 60 cents per gallon in 2012.”
As a result of this cost differential, “…ethanol blended with RBOB to produce reformulated gasoline at a 10 percent (E10) blend has reduced the cost of motor fuel to consumers.” Importantly, the author notes that ethanol’s impact on gas prices goes far beyond the wholesale price spread: “This does not include the additional downward impact ethanol has on gasoline prices as a result of extending supplies and reducing demand for crude oil.”
U.S. ethanol isn’t just outcompeting gasoline on price—it is also outperforming ethanol from other key exporting countries, like Brazil. According to the report, “…even with depreciation of the real, U.S. ethanol has been more cost competitive than Brazilian ethanol in key U.S. and world markets over the past several years.” This has particular relevance in the California market, according to the study, because that state’s fuel policies strongly compel fuel suppliers to import Brazilian ethanol in lieu of U.S. ethanol. “Use of Brazilian ethanol in place of U.S. ethanol theoretically raised the price of E10 for California consumers by 8 cents per gallon over the past four years,” the study found.
In closing, the study indicates that the competitiveness of U.S. ethanol will only improve in the future: “This competitive advantage is expected to increase further, as U.S. ethanol and feedstock producers adopt new technologies and crude oil prices continue to trend higher.”
The full report, titled “The Economic Competitiveness of U.S. Ethanol,” is available here.
- See more at: http://www.ethanolrfa.org/news/entry/new-analysis-u.s.-ethanol-is-lowest-cost-motor-fuel-octane-source-on-planet/#sthash.5XLC1VVn.dpufEthanol produced in the United States has been the most economically competitive motor fuel in the world over the past four years and has played an important role in reducing consumer fuel costs, according to a new analysis released today by the Renewable Fuels Association (RFA).
The analysis, conducted by ABF Economics, examined actual wholesale prices paid for ethanol, gasoline, and alternative octane sources in several key U.S. and world markets in the 2010–2013 timeframe. Based on the market data, the report concludes that “…U.S.-produced ethanol is an exceptionally competitive additive and fuel source…” and that “…U.S. ethanol has emerged as the lowest cost transportation fuel and octane source in the world over the past several years.”
Commenting on the analysis, RFA President and CEO Bob Dinneen said, “As proven by the recent boom in exports, American-made ethanol has evolved into the most cost competitive transportation fuel and octane source in the world. Through rapid technology adoption and innovation, U.S. producers have proudly earned the distinction of being the global leader and low-cost producer of clean-burning, renewable ethanol.”
“Despite the fact that ethanol offers greater consumer choice at a lower cost, entrenched petroleum companies continue to erect barriers that deny access to larger volumes of renewable fuels,” Dinneen continued. “In a truly free market, consumers would always choose a fuel that is produced domestically, is better for the environment and climate, and costs much less than gasoline. Unfortunately, free markets only exist in text books, underscoring the need for monopoly-breaking policies like the Renewable Fuel Standard.”
The ABF Economics study found that even after accounting for transportation costs to the reference markets of Los Angeles, Chicago, and New York, “The ‘spread’ between ethanol and RBOB [gasoline] has averaged 30 to 40 cents per gallon over the past four years in these three key markets, and the difference averaged more than 60 cents per gallon in 2012.”
As a result of this cost differential, “…ethanol blended with RBOB to produce reformulated gasoline at a 10 percent (E10) blend has reduced the cost of motor fuel to consumers.” Importantly, the author notes that ethanol’s impact on gas prices goes far beyond the wholesale price spread: “This does not include the additional downward impact ethanol has on gasoline prices as a result of extending supplies and reducing demand for crude oil.”
U.S. ethanol isn’t just outcompeting gasoline on price—it is also outperforming ethanol from other key exporting countries, like Brazil. According to the report, “…even with depreciation of the real, U.S. ethanol has been more cost competitive than Brazilian ethanol in key U.S. and world markets over the past several years.” This has particular relevance in the California market, according to the study, because that state’s fuel policies strongly compel fuel suppliers to import Brazilian ethanol in lieu of U.S. ethanol. “Use of Brazilian ethanol in place of U.S. ethanol theoretically raised the price of E10 for California consumers by 8 cents per gallon over the past four years,” the study found.
In closing, the study indicates that the competitiveness of U.S. ethanol will only improve in the future: “This competitive advantage is expected to increase further, as U.S. ethanol and feedstock producers adopt new technologies and crude oil prices continue to trend higher.”
The full report, titled “The Economic Competitiveness of U.S. Ethanol,” is available here.
- See more at: http://www.ethanolrfa.org/news/entry/new-analysis-u.s.-ethanol-is-lowest-cost-motor-fuel-octane-source-on-planet/#sthash.5XLC1VVn.dpufJuly 21, 2014
By Bob Dineen
Ethanol will once again take center stage in August as 500,000 motorcyclists from all over the world roll into Sturgis, S.D., to celebrate the 74th annual Sturgis Motorcycle Rally. For the sixth consecutive year, the Renewable Fuels Association is a proud sponsor of the motorcycle rally, leading the way in motorcycle education.
Downtown Sturgis is lined with motorcycles during the rally—often reaching four deep—presenting an opportunity to dispel misinformation that has spread throughout the motorcycle world concerning ethanol use in motorcycles. Bryan O’Neill, a mechanic and member of the Iron Order Motorcycle Club, spoke at the National Ethanol Conference in February to explain the misleading claims. He noted, “Naysayers are erroneously pointing out so-called problems with ethanol, using catchy terms like ‘phase separation’, to cast ethanol in a negative light. … This is the kind of misinformation that is being spread throughout the motorcycle community that is causing distrust in a product that we have been using for years.”
The Sturgis rally offers RFA a unique chance to reach a half million bikers with a message that not only counters the false information, but highlights the cost-saving, high-octane benefits of ethanol. RFA takes this opportunity to point out that motorcycle manufacturers—including Harley-Davidson, Kawasaki and Yamaha—approve the use of E10 in motorcycles, and explain that ethanol saves American drivers an average of $1 per gallon.
One of the many ways RFA promotes ethanol is through the widely-popular “Free Fuel Happy Hours,” offering a free tank of E10 93-octane fuel to riders at the Sturgis Buffalo Chip campground. The promotion amasses lines 100 bikes long and gives our staff an opportunity to answer questions and dispel concerns about ethanol use in motorcycles.
In addition to the “Free Fuel Happy Hours,” RFA maintains a large presence at the Sturgis Buffalo Chip campground. The campground has been the epicenter of the rally since it opened in 1981. Popular names like Florida Georgia Line, Zac Brown Band and ZZ Top grace the main stage where RFA reaches the crowd of more than 100,000 people with a message of “Ride Safe, Fuel Right.”
Last, but certainly not least, RFA gives back to the Sturgis community through sponsorship of the annual “Legends Ride.” The event’s proceeds are donated to local charities, including the Black Hills Special Olympics. All “Legends Ride” participants receive free “Fueled with Pride” giveaways and informational materials on ethanol before they embark on the ride that originates in Deadwood, S.D.
The Sturgis Motorcycle Rally allows RFA to directly and effectively educate motorcycle riders on the cost-saving benefits of ethanol. Low-cost fuel is essential to bikers, because as they like to say, “A good long ride can clear your mind, restore your soul and use up a lot of fuel.”
Read the original story here : Leading The Way In Motorcycle Education
July 15, 2014
By David Cullen
A new engine/powertrain combination developed by Cummins Inc. that’s fueled by E85 (an ethanol/gasoline blend) cuts carbon-dioxide (CO2) emissions by 50% to 80% vs. a baseline gasoline-powered medium-duty truck, according to the manufacturer.
Dubbed the ETHOS engine by Cummins, the 2.8L powerplant was designed specifically to run on E-85, which the engine maker describes as a “clean-burning blend” of 85% ethanol and 15% gasoline.
Cummins said that “to take full advantage of the favorable combustion attributes and potential of E85, the engine operates at diesel-like cylinder pressures and incorporates advanced spark-ignition technology” to “deliver the power (up to 250 hp) and peak torque (up to 450 lb-ft) of gasoline and diesel engines nearly twice its 2.8L-displacement.”
The engine maker said that the over 1,000 miles and 1,500 hours accumulated on the ETHOS 2.8L over the past 2.5 years shows that “this technology is capable of far exceeding the 50% CO2 emissions reductions outlined in the project's goals.”
A final on-road validation testing phase has been underway in the Sacramento, CA, area since June and will continue into this month.
"The Cummins ETHOS engine, developed through a research partnership with the California Energy Commission (CEC), clearly demonstrates that by combining innovative engine design and combustion approaches with low-carbon alternative fuels, we can determine a path to significant reductions in greenhouse gas (GHG) emissions," said Wayne Eckerle, vice president-- Research & Technology for Cummins. He noted that the engine maker is very appreciative of the CEC's funding participation in this important effort."
The ETHOS incorporates an integrated stop-start system to further reduce fuel consumption and emissions. In stop-start mode, the engine shuts down after the vehicle comes to a complete stop and the brake pedal remains depressed, Cummins explained. As the driver's foot is lifted from the brake, the system automatically starts the engine “to seamlessly allow acceleration from the stop.”
In addition, Cummins-integrated specific system controls, along with a robust starter, smart alternator and sensors, combine to handle the additional stop-start duty cycle and maintain reliable operation over the life of the engine, the company stated.
Cummins said it also worked closely with Allison Transmission to integrate that company’s 2000 Series transmission into the powertrain to ensure “smooth and efficient stop-start operation,” noting that the transmission is equipped with hydraulic circulation features “to ensure smooth operation and quick vehicle launch during stop-start driving.”
Additional partners in the project included Valvoline, which provided NextGen engine oils specifically designed for lower CO2 emissions, and Freightliner Custom Chassis Corp. (FCCC), which provided a prototype MT45 Class 5 step-van vehicle.
Read the original story here : Cummins : E85-fueled Engine Cuts Medium-Duty CO2 Emissions by 50% to 80%
More...
July 17, 2014
By Tom Buis
The greatest challenge the ethanol industry faces is making higher blends of our product available to consumers nationwide. Producing ethanol is not the problem, it’s getting the fuel into the marketplace.
The production efficiencies of ethanol continue to improve: less energy, less water, less greenhouse gas emissions and higher yields, which makes our industry the envy of the world. Meanwhile, all the new oil gains from fracking and tar sands are taking the nation in the wrong direction, higher costs, increased use of resources and greater risks to our environment and air.
Incredibly, despite overwhelming evidence about oil’s dangerous practices and impacts, the renewable fuels industry is blamed by Big Oil and special interests for damaging the environment. It is as if Big Oil is living in an alternate reality. The facts speak for themselves, tens of thousands of spills a year, earthquakes from fracking and who could forget the BP spill in Gulf of Mexico or the Exxon Valdez spill in Alaska? The list goes on and on.
Our industry is often unfairly criticized for receiving federal tax subsidies when, in fact, we volunteered to give up the Volumetric Ethanol Excise Tax Credit in 2011. However, oil tax subsidies began over 100 years ago and continue today. And, if that’s not enough, our industry is blamed for higher food prices. In reality, the World Bank found that the biggest driver of food price increases is the cost of oil. Talk about the fox guarding the henhouse! In all my years in Washington, that is the biggest whopper I have ever heard.
Time and again, Big Oil damages our environment and actively propagates misinformation to keep the American consumer addicted to their product, and fearful of a cleaner, greener homegrown alternative to fossil fuels.
The real reason for all this misinformation is simple. It is a fight over market share. The ethanol industry already has captured 10 percent of the market because of all the benefits it offers to consumers and the oil industry knows we have the capability to secure even more. All of the misleading rhetoric and all of the fights over the renewable fuel standard (RFS) in Congress, along with all of the efforts to get U.S. EPA to roll back the RFS is for one reason: market share. They are spending millions, not for what’s best for America, or our environment, air, health or energy security, but to simply protect their monopoly on transportation fuels.
The key to success is simple, breaking down the barriers to give consumers a choice at the pump. We know ethanol is a better performing fuel, cleaner, less expensive, higher octane and renewable. And, we have seen consumers actively choose higher blends of ethanol when given the choice. That is why we need to continue to fight to expand infrastructure and availability of higher blends. The demand is there and now we must overcome the legal, regulatory and public relations hurdles Big Oil has put in place in attempts to block market access for our product.
Luckily, we have the facts on our side. In reality, the investment is not the burden, as consumer demand and competitive advantage will mitigate any short term spending with future growth in profit margins. Higher performance and lower fuel costs will keep customers coming back. The only hindrances are the misinformation Big Oil is spreading to mislead consumers about E15.
Independent retail chains are beginning to realize that E15 offers them a price advantage and better margin opportunity. Chains such as Mapco, Minnoco and Murphy USA and others have all committed to expanding E15 offerings. In fact, retailers who currently have E15 available to consumers have reported the sale of the blend accounts for nearly 30 percent of all sales while providing better profit margins for the retailer.
For anyone who is paying attention, E15 is the clear choice. Consumers can rest easy knowing that by using homegrown renewable fuels they are investing in American jobs and the American economy. By continuing to fight for our share of the market, spreading the word to our neighbors and increasing availability of higher blends throughout the country, we will win this fight. It is obvious higher blends of ethanol are what is best for America’s energy future.
Read the original story : Higher Blends Best For America's Energy Future
July 16, 2014
By Sens. Chuck Grassley and Amy Klobuchar
It’s vacation season across America. That means family road trips are underway and the traveling public is paying even closer attention when they pull up to the pump.
America’s road warriors have long cherished affordable gas prices. Today’s drivers also value clean-burning fuel choices that help the environment and boost America’s energy independence.
Look back four decades through the rearview mirror.
History shows how the 1973 oil embargo exposed the economic risks and geopolitical vulnerabilities associated with perilous dependence on foreign oil. While gas shortages roiled consumers, the embargo gripped the U.S. economy and foreign policy with steep consequences.
Since then, policymakers have worked to bring greater stability to U.S. energy security, through the creation of the Strategic Petroleum Reserve and more domestic production, conservation (fuel economy standards) and diversification, including incentives for homegrown, clean-burning, renewable biofuels.
Most recently, Congress created the Renewable Fuel Standard (RFS), in 2005, to promote the development and use of domestic renewable biofuels. We also supported the law’s expansion in 2007 to bring 36 billion gallons of renewable fuels online annually by 2022.
The federal law has helped to displace oil imports, increase domestic energy security, create jobs in rural America, curb pollution with cleaner-burning fuel and lower prices at the pump for consumers. Pure and simple, the RFS is good for America’s energy, as well as its environmental and economic stability.
In recent years, Congress also has enacted provisions to promote the installation of blender pumps at gas stations nationwide, providing consumers with a greater choice of fuels.
Still, the nation’s energy policy is running into some bumps in the road. For starters, the Environmental Protection Agency last fall pitched a misguided proposal to greatly reduce the RFS for fiscal 2014. The proposed rule would lower the volume targets for advanced biofuels from 3.25 billion gallons to 2.2 billion gallons. This proposal is causing uncertainty that could scare off future investments in this promising, innovative industry.
Biofuels also are facing stiff resistance from Big Oil. This time, it’s not OPEC putting a stranglehold on the marketplace. It is instead the powerful oil industry that, reports show, is blocking the pipeline for biofuels to get to market.
Last fall, we asked the Department of Justice and the Federal Trade Commission (FTC) to investigate possible anticompetitive practices by the oil industry. We shared concerns we heard that oil companies allegedly are mandating retailers carry and sell premium gasoline, which prevents the retailer from selling renewable fuels without installing expensive infrastructure upgrades. By forcing a franchisee to carry premium gasoline as a condition of carrying regular gas, the oil company may be using its economic power to leverage unreasonable, discriminatory arrangements that are in violation of federal laws. The Department of Justice and the FTC responded with assurances that they are taking steps to identify, prevent and prosecute practices in the petroleum markets that violate anticompetitive or fraudulent business practices.
It’s a long-standing tactic for these big international oil companies. On the one hand, Big Oil argues that the RFS is broken because the industry says it can’t mix the higher blends. On the other hand, those same companies appear to be doing everything they can to prevent any widespread investment in infrastructure by their franchisees and smaller stations that are buying and selling their gasoline.
Big oil companies can cry crocodile tears, but it’s their self-inflicted actions that are standing in the way of meeting the requirements of the RFS, not ethanol producers. Big Oil can’t argue it should be repealed because it doesn’t work when Big Oil is the one responsible for ensuring that consumers don’t have the choice for higher ethanol blends.
That’s why we kindly suggest the decision-makers at the Justice department and the FTC take a close look at a recent investigative study conducted by the Renewable Fuels Association. Its fact-finding analysis shows how oil companies appear to be blocking the sale of greater volumes of renewable fuels through bullying business tactics. Big Oil likes to say it has no control over what’s offered at the pumps of retail gas stations and franchisees — but the facts say otherwise.
The report’s “Consumer Choice Report Card” shows less than 1 percent of branded stations offer E15 or E85. Specifically, of nearly 48,000 retail gas stations carrying a “Big Five” oil company brand, fewer than 300 offer E85 or E15. That flunks any reasonable standard of fairness in the marketplace. The report flushes out fuel supply contracts, franchise agreements and other documents that show how Big Oil flexes its authority to undermine the sale of E85 and E15 renewables.
Tellingly, according to the report, independent stations are four to six times more likely to offer E85 and 40 times more likely to offer E15 than stations selling a “Big Five” oil brand. It would be foolish to view these findings as a fluke. Facts are hard to fabricate.
America has mapped out a long-term strategy to pump up competition in the transportation fuels sector, secure innovative, cleaner renewable fuels to protect the environment and boost more domestic oil production to help immunize the economy and consumers from dependence on foreign oil.
Let’s not let Big Oil spoil the route to greater, cleaner energy independence. U.S. energy security is not for sale. It’s time to hand over the keys to consumers and let renewables and traditional fossil fuels compete side by side at the pump.
Minneapolis, July 17 - The Minnesota Bio-Fuels Association (MBA) is pleased to announce that Boulay has become our association's latest vendor member.
"We are pleased to expand our vendor member portfolio to include Boulay which is a renowned accounting firm with strong ties to the renewable fuels industry," said Tim Rudnicki, MBA's executive director.
Founded in 1934, the Eden Prairie-based firm has over 150 staff which includes 30 partners and 90 certified public accountants. For over 15 years, Boulay has served 50 private and public renewable energy clients representing approximately 2 billion gallons of potential capacity nationwide.
With over 20 professionals dedicated to serving the renewable fuels industry, Boulay's services include:
Audit, review and compilations
Employee benefit plan audits
Initial Public Offerings
RIN attestation
Litigation support and expert witness
IRS inquiries regarding tax return and payments
Industry legislative tax credit analysis
Projections and forecasts
Industry standards reporting
Cost segregation studies
R&D tax credits
XBRL services
Analysis of internal controls
Entity analysis
Federal & state tax compliance and planning
Debt and equity capital financing analysis
Strategic planning and facilitation
With Boulay on board, MBA now has 12 vendor members.
"In the months and years to come, we hope to add more valuable industry members to our portfolio. MBA continues to play a leading role in promoting and growing Minnesota's biofuel industry and will continue to do so with support from organizations like Boulay," Rudnicki said.
To learn more about Boulay, please click here
July 16, 2014
By Holly Jessen
When Charlie Good, mechanic and owner of Good & Quick in Nevada, Iowa, started preparing to add E15 to his product offerings at his independent gas retail store, he noticed his contract with ConocoPhillips said he couldn’t sell anything with an ethanol content higher than E10. He called his supplier and was told he’d have to either wait several months, until his contract was up, or pay $30,000 to get out of it. In the end, Good negotiated an agreement that he would put his own canopy up and just fly the ConocoPhillips flag for the remainder of the contract.
Good sees absolutely no downside in letting his ConocoPhillips contract run out and going with an unbranded fuel supplier. Still, he admits it was a difficult decision. “I’m not going to lie to you and tell you I wasn’t afraid of doing this,” he said. “… I know how the big boys can eat you up if they want to.”
Nationwide, there are 135,000 retail gas stations, with 84,000, or 63 percent, under single ownership, says Mike O’Brien, vice president of market development for Growth Energy. And, unbranded or independent retailers, some of which are under single ownership and some that are not, are starting to offer E15. Over time, this will give those companies a competitive advantage and, eventually, force major oil brands to start selling it, he adds.
Good agrees, saying that offering alternative fuel blends is a way for independent retailers to survive and excel against oil majors by finding a niche. “I don’t believe you will see Casey’s or Kum & Go or any of these majors adapt to these fuels, until the public demands it,” he says, naming his two competitors in Nevada.
Since his central Iowa gas station switched to an unbranded fuel, there have been no problems with fuel quality and Good is so confident there won’t be, he 100 percent guarantees the fuel. So far, the only complaint Good has received is that that store no longer takes ConcoPhillips credit cards. Other than that, his customers couldn’t seem to care less that the canopy no longer displays the name of an oil major. “Brand loyalty means nothing now,” he says. “It’s all about what it’s going to cost me.”
In fact, the end of May, Good had sold nearly 7,000 more gallons of fuel as compared to the same time last year. “The big mistake that I made was, I only put one blender pump in,” he says, adding that although he spent half a million dollars updating his station he wishes he had found the extra money to make all three of his pumps blender pumps. In all, 15 to 20 percent of his fuel sales is ethanol.
There are other benefits. He’s spending 2 to 7.5 cents less a gallon on unbranded fuel stock and saving significantly on credit card fees. His new supplier charges him a 1.7 percent fee on credit card payments from customers, down from 3 percent, his previous rate, saving him about $3,000 in one recent month.
Detour Ahead
Good isn’t the only retailer encountering pushback from big-name petroleum distributors attempting to limit retailers’ options when it comes to selling ethanol blends, says Robert White, director of market development for the Renewable Fuels Association. That’s been true for E85 but it’s particularly been an issue with E15. “The majors, at least until they feel a pinch from competitors, are pretty much either requiring that they put in all new equipment, label it to the nines, which would basically scare off any reasonable person, or they can’t put it under their canopy at all.”
Darin Schlapia, the branch manager of Creston Farmer’s Co-op in Iowa, encountered difficulty when he attempted to negotiate a brand agreement with Cenex for a new Farmer’s Co-op location, which will be built in Mount Ayr, Iowa, this fall. Even though Cenex markets ethanol and distillers grains and recently acquired a 133 MMgy ethanol plant in Rochelle, Ill., its contract requires gas retailers offer at least two different grades of gas, E10 and straight gas with no ethanol content. In order to sell E15 and other higher blends, as the co-op planned, the gas station would have had to add additional equipment. Schlapia knew from sales numbers at the Farmer’s Co-op station in Afton, Iowa, that the cooperative would sell more gallons of fuel if it offered E15 and other ethanol blends instead of ethanol-free gas. “Afton sells regular 87 gasoline and we might sell 50 gallons a day at the most,” he says, adding, for comparison, that the store could sell about 600 gallons of E10 in the same day. “People are definitely choosing the higher ethanol blends. To spend that much money on equipment, just to have another grade of gasoline, was not economical.”
The Mount Ayr station will still purchase its fuel from Cenex but, because it’s not a Cenex branded station, it isn’t allowed to display that logo anywhere. Schlapia is disappointed in the Cenex stance on E15 and thinks it needs to be re-evaluated. And yet, he understands that the company is trying to make sure all Cenex branded stations have a consistent offering of the same fuels, he says.
In Kansas, Scott Zaremba says Phillips 66 created new rules designed to keep him from selling E15 after he’d already moved forward with becoming a registered E15 retailer. The oil company told him he had to sell E15 on a yellow E85 hose, which actually goes against U.S. EPA requirements for selling E15 to heritage vehicles. So he paid $380,000 to get out of his contract and changed the name of his seven gas stations from Zarco 66 to Zarco USA. “They told me if I used anything with 66 in my name they’d hang me out to dry,” he says.
The move was well worth it, in his opinion. “We have to be able to sell whatever products we want out of our retail facilities that we own and we operate,” he says. “… They were just trying to dictate what was going to happen at the facility and we weren’t going to let them.”
In Minnesota, the Minnesota Service Station & Convenience Store Association is working with independent retail stations to band together under one logo and the name Minnoco. So far, four retailers in the Minneapolis, St. Paul area have joined, says Lance Klatt, executive director of MSSA. Although selling alternative fuels isn’t a requirement for Minnoco retailers, most are doing just that. With the help of various funding sources, including Growth Energy, the Minnesota Corn Growers, Minnesota Department of Agriculture and Minnesota Lung Association, Minnoco retailers have received financial support to install equipment to sell E15 and other higher ethanol blends. That’s a big draw for retailers who might not be willing to take a chance on E15 otherwise, Klatt says.
Retailers have responded enthus-iastically, appreciating the opportunity to bring new fueling options to their customers and make their own decisions on how to run their business. Klatt expects there will be 25 Minnoco stations offering E15 and higher ethanol blends by November. “Right now we feel like it’s the most sought after image in the Minneapolis marketplace,” he says, adding that retailers like the look of the logo as well as the opportunity to manage their own brand.
Of those stations already signed up, 15 or 20 percent of their sales are E15, E30 and E85. That’s driving increased fuel sales to current and new customers. There’s also work being done in cooperation with the Minnesota Pollution Control Agency and the Minnesota Agriculture Department to possibly launch E15 statewide, labeling it as the new midgrade fuel, he says.
Read the original story here : E15 Retailers Get Creative
July 15, 2014
By Ron Lamberty
We work in an industry that is measured in some very large numbers. Sometimes numbers in the billions, millions, trillions or quadrillions just meld together as we hear them or read them so that it’s difficult to put them in perspective and compare them to something familiar. Carl Sagan, the “billions and billions” guy some of us remember, created one of the most famous solutions to this large-number challenge when he created a timeline that showed the history of planet earth as if it were one year. Most of what we know of human history happened in the final 60 seconds of Dec. 31, with Columbus discovering America one second before midnight.
I don’t have a chart like that to explain the state of the world’s energy. But there have been some large energy numbers reported in the last month and I found them, and the reaction to them, fascinating.
Last month, BP released its Statistical Review of World Energy, which is widely regarded as the oil industry’s definitive report on how much oil and gas is out there, who has it, and how long it will last. Most news reports about the oil side of the study touted the fact that BP’s estimate of proven reserves (Huh? Is it estimated or proven?) increased from 1.65 trillion barrels of oil to 1.67 trillion barrels.
That’s a lot. One trillion, 670 billion (rounded up) is a big number. The actual BP number looks like this: 1,669,000,000,000. If you convert that to gallons, it’s 70,980,000,000,000 gallons. That’s huge, right? BP’s report also increased United States’ proven reserves from 31 billion barrels to 35 billion barrels. That’s 35,000,000,000 barrels, 1,470,000,000,000 gallons or one and a half trillion gallons of oil.
Even if you take that oil and figure out how much gas you could make for cars, it’s a big number. Utilizing 700 billion gallons of gas in the U.S., 32.5 trillion gallons of gas could be produced from the worldwide proven oil reserves.
Now, when you divide the 1.67 trillion barrels of oil among the 7 billion (7,180,000,000) inhabitants of the planet, you come up with 232 barrels of oil per person. You could make that into 4,500 gallons of gas and more than 2,000 gallons of diesel fuel. And those numbers are probably low, because a lot of the people on the planet use no fossil oil at all. But think about how much gas you use. How many years would it take you to burn up 4,500 gallons?
Most responses to the article, and especially the comments below, fell into the category of “See, they’re lying. We have PLENTY of oil out there, and they’re probably underestimating that.” Ironically, the brave, “so what” comments came from Americans, who may not have realized that the 35 billion barrels we have, is roughly what we would use in five years. A commenter on one online story about the report said that there were probably 75 billion more barrels in the U.S. that we could recover. He didn’t mention cost, but I suspect those additional gallons would require the same kind of shift in recovery cost that moved us from $20 a barrel to $120 in the past 15 years. And if it’s there, it would bring the U.S. up to a total of 15 years of oil reserves.
But then there one other number in the report that got most of my attention: 53. The report says we have enough oil left on planet Earth to last 53.3 years. That number stood out because I just celebrated my 53rd birthday. If my dad and the rest of the world had seen a report like this BP report on the day I was born, and did nothing, we would be out of oil by now.
Fifty-three years does not feel like a long time to me. I plan to use my next 53 years to help all of you render that oil number irrelevant.
Ron Lamberty is the senior vice president of the American Coalition For Ethanol.
Read the orginal story here : What's 1.67 trillion Divided By 53?
July 9, 2014
By Ayesha Rascoe
Two U.S. farm-state Senators on Wednesday urged federal regulators to investigate allegations raised by a biofuel trade group that the oil industry uses "strong arm tactics" to prevent widespread use of higher blends of ethanol in gasoline.
A report from the Renewable Fuels Association this week said major oil companies have discouraged the sale of ethanol at levels of 15 percent per gallon (E15) and 85 percent per gallon (E85) at retail stations, by using distribution contracts that make it expensive or nearly impossible for franchises to offer the blends. (RFA report: bit.ly/1mIvQi9)
Senators Amy Klobuchar, a Democrat from Minnesota, and Chuck Grassley, a Republican from Iowa, said on Wednesday that the report bolstered the case for the Federal Trade Commission to evaluate whether the oil industry has engaged in anti-competitive practices.
"This new report underscores the need for the FTC to look into these allegations, and I will continue pushing to ensure that consumers have access to the cheaper, cleaner fuels they deserve," Klobuchar, who chairs the Senate Judiciary Committee's antirust panel, said in a statement.
The Renewable Fuel Standard requires increasing amounts of ethanol and biodiesel to be blended into U.S. fuel supplies through 2022.
Higher blends of ethanol at the pump are needed to avoid the so called "blend wall," the point when federal law will require the use of more ethanol than can be absorbed at the 10 percent per gallon level that dominates U.S. gasoline stations.
Oil companies, who have long called for repeal of the biofuel mandate, say retailers have been reluctant to sell E15 due to concerns that it could harm engines in older vehicles, and that consumer do not want to buy the product.
Without infrastructure to accommodate the widespread sale of E15, refiners have said they would be forced to sell less gasoline or export more refined products to meet the law's requirements.
Klobuchar and Grassley have pressed the FTC for almost a year to probe whether oil industry practices regarding ethanol violate antitrust laws. It is unclear if the agency has taken action on the matter.
The RFA report found that independent, or unbranded, retail gas stations were four to six times more likely to offer E85 and 40 times more likely to carry E15 gasoline than stations associated with major oil company brands.
“Big oil interests can’t argue for repeal of the RFS because it doesn’t work when they’re the ones responsible for ensuring that consumers don’t have the choice for higher ethanol blends," Grassley said.
He also blasted the Environmental Protection Agency for a draft plan that would slash 2014 biofuel use targets in light of the looming blend wall, saying the agency had "fallen for Big Oil's rhetoric."
Read the original story here : U.S. Senators Press Probe Of Report That Oil Companies Blocked Ethanol
See also:
RFA Scores Retailers For E85, E15 Offerings ; Big Oil Gets An 'F'
RFA Report Details Big Oil's Tactics In Preventing E85, E15 Sales
By Susanne Retka Schill
July 8, 2014
The five Big Oil brands got an “F” in the Renewable Fuels Association’s score card for their poor performance in offering E15 or E85. A new report released July 8, shows that out of the nearly 48,000 retail gas stations carrying the brand of ConocoPhillips, BP, Chevron, Shell and ExxonMobil, fewer than 300 offer E15 or E85, or less than 1 percent.
Among the 34,000 stations carrying other refiner-affiliated brands, only Speedway/SuperAmerica and Cenex received high marks. About 13 percent of Speedway/SuperAmerica branded stations offering higher blends for an A-, and 6 percent of Cenex stations for a B grade. The other oil-refiner branded stations had percentages at 1 percent or less.
The 74,000 independent, unbranded stations are four to six times more likely to offer E85, the report says. According to U.S. DOE data on E85 and RFA data on E15, 1,700 stations (2.3 percent) sell the higher blends. A separate data set pegs the number higher at 2,570 stations offering renewable fuels.
On the scorecard, RFA gave A+ to several independent/unbranded chains for offering higher blends at more than 25 percent of their stations, including Meijer, Thorntons, Kum & Go, Break Time and Kwik Trip. Meijer Gas took the top honors with 58 percent of its branded stations offering E85 or E15.
The scorecard accompanies RFA’s latest report outlining the strong arm tactics used to prevent or discourage the sale of renewable fuels at Big Oil-branded stations. “Big Oil companies are rigging the market to take away consumer choice and prevent many retailers from offering these clean, homegrown fuels,” RFA president and CEO Bob Dinneen said in releasing the report. “When Big oil companies are doing everything they can to keep a lower cost, high performance fuel from the American public, we’ve got to do more.”
A favorite argument of oil companies is that they don’t own many stations and thus don’t have any control over stations offering E15 or E85, said Geoff Cooper, senior vice president. “If you step back, you quickly see the major oil companies still exert tremendous control. There’s a variety of methods used to shut out competition from renewable fuels.”
Among those Cooper listed were fuel contracts that require supplier exclusivity or minimum sales volumes of branded fuels. Contracts often require multiple grades of branded gasoline to be sold at all times or require intimidating warning labels on E85 or E15 dispensers. Branding agreements can discourage or prohibit retailers from promoting or advertising the availability of E85 and contracts can include substantial penalties for violating the terms.
The report also outlines a combination of policy and market-based solutions including:
- A federal investigation into anticompetitive practices
- Enforcement of the Petroleum Marketing Practices Act and Gasohol Competition Act
- Enforcement of the statutory Renewable Fuel Standard (RFS) requirements
- Investment in infrastructure
- Consumer education about the economic and environmental benefits of biofuels
- Incentivize the continued production of FFVs
The single most important thing, Dinneen stressed in the press call accompanying the release, is “we have to enforce the renewable fuels standard. The RFS was the mechanism to break the monopolistic hold the Big Oil companies have.”
Read the original story here : RFA Scores Retailers For E85, E15 Offerings ; Big Oil Gets An 'F'
Download the RFA report, "Protecting The Monopoly : How Big Oil Covertly Blocks The Sale Of Renewable Fuels," here
July 7, 2014
By Christopher Doering
The ethanol industry Monday urged a federal regulator overseeing the nation's railroads to provide relief for shippers of the renewable fuel who have faced delays.
Growth Energy, which represents ethanol manufacturers, told the Surface Transportation Board that producers of the renewable fuel should be given the same relief that the agency provided to grain shippers in June.
Last month, the STB ordered Canadian Pacific Railway and BNSF Railway to provide the agency an update on their plans to reduce the backlog of grain cars across their networks -- a step welcomed by agricultural groups concerned that farmers could struggle to get their crops to market this fall.
In a letter sent Monday to the STB, Tom Buis, chief executive with Growth Energy, said with more than 61 percent of all ethanol delivered by rail, it is "imperative that these issues be directly addressed and given the same priority as grain shipments."
Buis said immediate action was necessary to "ensure that railroads improve their service." Ethanol supplies were squeezed and prices soared earlier this year, he noted, because of the inability to get rail cars to ship their product. Many ethanol producers were forced to reduce production because they had no place to store the fuel.
Dennis Watson, a spokesman with the STB, said the agency had received the letter but had no comment on it. The agency, he said, is constantly reviewing all commodities shipped by train and the service the rail companies are providing.
In recent months, BNSF and Canadian Pacific have come under fire from shippers, Washington lawmakers and the STB itself for shortages and delays in delivering rail cars to farmers, ethanol plants and grain elevator operators. The rail system in much of the western Corn Belt has been slowed by a plentiful 2013 harvest, higher coal and oil volumes, and the extraordinarily long, cold winter that reduced the size and speed of trains that operated.
Ethanol cannot be shipped through gasoline pipelines because of its corrosive properties, leaving movement of the flammable liquid to trains and trucks, often through densely populated residential areas. As ethanol production has grown, more of it must be shipped outside of the Midwest where much of it is produced, forcing makers of the renewable fuel to depend more heavily on railroads.
The corn-based fuel is a small but growing commodity for railroads, with ethanol shipments commanding just over 1 percent of total carloads moved by train annually, according to the STB. In 2011, 32 percent of U.S. ethanol shipments originated from Iowa, the country's biggest producer of the corn-based fuel.
Read the original story here : Ethanol Industry Asks For Relief From Rail Delays