Ethanol Industry Pleased with NREL Study

The ethanol industry is pleased with a new study released this week by the National Renewable Energy Lab (NREL) showing existing service station equipment is compatible with E15, a 15 percent blend of the green fuel. The study also looked at vapor control equipment and found “an extensive list of E15 and E15+ compatible equipment available.”

lamberty“Rumors of E15’s impossibility and high equipment cost have been greatly exaggerated,” said American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty. “NREL’s analysis confirms what we have been telling station owners since E15 was approved – most underground storage tanks (USTs), piping, and other fueling equipment are already compatible with E15.”

Lamberty said the ethanol industry has been criticized and called “dangerous” and “dishonest’ for suggesting marketers could simply put E15 in tanks they previously used for premium or midgrade gasoline. “Even after highlighting real-world fuel marketers selling E15 from existing equipment, the myth of high priced E15 infrastructure remains,” said Lamberty. “This study effectively busts that myth.”

Lamberty went on to say that “in stations where Big Oil couldn’t contractually ban E15, they had to scare the owners out of offering the less-expensive, higher-octane fuel.”

dinneen-capitolBob Dinneen, president and CEO of the Renewable Fuels Association, also commented on the study:

“This comprehensive analysis is both timely and relevant to the current debate about the so-called ‘blend wall’ that some would like to use to limit the growth opportunities for ethanol under the RFS. Clearly, the constraints to the increased use of E15 have more to do with the recalcitrance of refiners and marketers than they do any real infrastructure barriers. Today’s comprehensive study should once and for all belie the misplaced conclusion that infrastructure and ethanol demand limitations should justify a reduction in the RFS as it found most equipment at a retail fuel station today, including underground storage tanks, are compatible with E15. This study demonstrates that most retailers will not be required to break concrete and spend hundreds of thousands of dollars to offer E15.”

The study was funded by the Blend Your Own Ethanol campaign, a joint effort of ACE and RFA to provide information for fuel retailers considering ethanol blends beyond E10. A full copy of the report can be found at BYOethanol.com, and interested parties can also register on the BYO website for an NREL webinar on the report which will be offered June 11, 2015 at 1:00 PM CDT.

New Ad from ACE Uses ‘Power by People’ for RFS

Marietta1Looking to capitalize on President Obama’s visit to Watertown, South Dakota, the American Coalition for Ethanol (ACE) placed a full page advertisement in the May 8 Watertown Public Opinion. The ad uses the Power by People campaign which highlights the personal stories and persuasiveness of ACE’s grassroots members.

The ad features Marietta Lakness, a farmer, rancher, and investor in Glacial Lakes Energy, an ACE-member ethanol company that owns and operates facilities in Watertown and Mina, South Dakota. It focuses on how the RFS has supported Watertown’s economic growth and success. The text of the ad reads:

“Sometimes policy makers in DC get it right. Watertown, South Dakota is proof. So is Marietta Lakness. She raised a family in Hamlin County and has seen up close the challenges rural communities face. That’s why Marietta joined with her neighbors to build Glacial Lakes Energy, their very own home town biorefinery. Thanks to a policy called the Renewable Fuel Standard, today Watertown and places like it across the country produce clean renewable fuel for all Americans. The RFS also helped Marietta and 4,000 people like her who invested in Glacial Lakes Energy unleash a new chapter of hope and prosperity for the region. Today there’s a new market for her crops, new feed for her livestock, new fuel for her neighbors, and new dollars circulating throughout the region. It’s a jolt that’s plain to see all over town. Even though they live well outside the Beltway, the people of Watertown – folks like Marietta – are proof that good things come when Washington gets it right. And that’s worth keeping. Mr. President, help keep the RFS on track.”

You can read Marietta’s ethanol story here.

Kum & Go to Offer E15

kum-and-go1Iowa-based convenience stores Kum & Go will begin offering E15 as a fuel option. The first station will be in Windsor Heights, Iowa on April 30 with 65 stores in Iowa, Nebraska, Arkansas, Colorado, Missouri, Oklahoma, and South Dakota planning to offer the higher blend within the next two years.

“We have a strong tradition in our company to implement sustainability within our business and at our locations. From our 100 LEED-certified stores, to our selection of alternative fuels, E15 was a natural addition to our fuel offering,” said Jim Pirolli, Vice President of Fuels, Kum & Go. “Having E15 in our portfolio allows Kum & Go to offer our customers a quality product at a great value.”

The news was welcomed by the ethanol industry.

Tom Buis, CEO of Growth Energy, issued the following statement:

growth-energy-logo1“We are thrilled to hear that Kum & Go will be offering E15, providing motorists with a choice and savings at the pump. Kum & Go prides themselves on their exemplary service and a drive to give the customer more than what they expect, and this latest announcement underscores their role as an innovator and leader in the convenience store marketplace. Furthermore, this announcement shows that customer demand for higher blends of homegrown, renewable fuels, such as E15, is growing and Kum & Go is taking the necessary steps to deliver what the marketplace demands and what the consumer wants.”

The Renewable Fuels Association (RFA) pointed out that that this action will bring the total number of states offering E15 to 20.

rfalogo1“RFA would like to thank Kum & Go for their continued leadership in ethanol,” said Robert White, vice president of industry relations at the Renewable Fuels Association. “They have been offering E85 to consumers for years, and this addition of E15 in these seven states just makes sense. These continued E15 announcements demonstrate that the business case is solid for higher blends, and should lead other retailers to explore their options.”

American Coalition for Ethanol (ACE) Senior Vice President Ron Lamberty offered congratulations and thanks to Kum & Go for making E15 more widely available.

ACElogo“Kum & Go has been a leader in offering E85 as a fuel choice at most of the locations they’ve built in the last several years – it seems fitting that they would now be the first large Midwest retailer to announce the addition of E15 as a fuel option. In the c-store business, everyone “wants to be first to be second,” so other retailers will take notice when a chain like Kum & Go is added to the list of E15 retailers that includes Mapco, Murphy Oil, Protec, Sheetz, and other smaller chains and single stores that have been offering E15 for two years or more. E15 is real, and with the number of vehicles built and warrantied for E15 growing by 10 million or more a year, it’s a smart option for stations to offer in the future,” said Lamberty.

Bipartisan Group of Senators Call for Strong RFS

US Capitol at dusk photo Joanna SchroederA bipartisan group of senators is calling on the Environmental Protection Agency (EPA) to reverse its current course and strengthen the Renewable Fuel Standard (RFS). Led by U.S. Senators Amy Klobuchar (D-MN), Chuck Grassley (R-IA), Dick Durbin (D-IL), John Thune (R-SD), Al Franken (D-MN), and Mark Kirk (R-IL), the 37 in the group say the EPA’s latest proposal would create uncertainty for ethanol and biodiesel producers and undermine job creation.

“The RFS has already proven to be an effective driver of alternative fuels and economic development,” the senators wrote. “The biofuels volume requirements for 2014 and beyond have serious implications for our economy and energy security. We encourage you to ensure a final proposal continues to work toward achieving the RFS’s long-term economic and renewable energy goals.”

The ethanol industry praised the senators for their action.

“It is encouraging to see such broad, bipartisan, and geographically diverse support for the Renewable Fuel Standard,” said Renewable Fuels Association president Bob Dinneen. “It’s leadership like this that will move America’s energy future forward. Farmers, entrepreneurs, and innovators across the country will applaud these 37 visionaries.”

“Convincing Senators to sign the RFS to Administrator McCarthy was a key part of our grassroots fly-in last month so we’re glad ACE members could play such an instrumental role in securing so many signatures,” said American Coalition for Ethanol Executive Vice President Brian Jennings. “We are also grateful for the strong bipartisan support conveyed by Senators that EPA must get the RFS back on track for implementation by reversing course from their ill-advised proposal which would have limited renewable fuel use at ten percent of gasoline consumption.”

Tom Buis, CEO of Growth Energy, says the letter is a clear message to the EPA. “In no uncertain terms this strong bipartisan coalition of Senators have indicated that they are closely watching the EPA as they seek to finalize this rule and that any changes which would undercut the congressional intent or role of the RFS will be met with intense scrutiny and strong objection,” said Buis.

EPA recently announced it will propose volume requirements by June 1 for 2015 and 2016 and will re-propose volume requirements for 2014 that reflect the volumes of renewable fuel that were actually used in 2014.

Motor Clubs Make Pitch for E15

ace-flyin-15-hammondThe management of both the Association Motor Club Marketing (AMCM) and the Travelers Motor Club are making their pitch for the higher blend of ethanol known as E15. The American Coalition for Ethanol quotes AMCM Owner Gene Hammond from a blog post he wrote shortly after taking part on the “Biofuels Beltway March” fly-in (and speaking with Domestic Fuel), where he was part of ethanol advocates who visited 17 congressional offices in Washington, D.C.

Hammond writes: “That E15 hasn’t caused any damage to cars is no surprise to us, because during our entire time in the motor club business, we’ve never had a complaint about any blend of ethanol in gasoline, period.”

“But the critics and the E15 ghost stories haven’t gone away, so we did our part recently by meeting with Members of Congress about what we’ve seen, and more importantly what we haven’t seen, from the usage of E15 by our motor club members. If the anti-E15 predictions and warnings Congress has heard for the last two years were true, the people who had those problems would be well known to you by now.

But the charges aren’t true. We let Congress know how safe this fuel is. We don’t think motorists should be forced to use any fuel, but what the Renewable Fuel Standard (RFS) does is give every driver in the United States the option to buy a quality American made product like the E15 fuel blend if they choose.

More fuel choices mean more competition and that means our members save at the pump.”

Hammond’s entire blog post is available here.

EPA Sets Timeline for RFS Volume Requirements

epa-150Under a court settlement with the oil industry, the Environmental Protection Agency today announced they will propose the 2015 Renewable Fuel Standard (RFS) renewable volume obligations by June 1, 2015, and issue the final 2014 and 2015 RFS blending targets by November 30, 2015. In addition, EPA will also release the proposed 2016 RFS RVOs by June 1 and the 2016 numbers will be finalized by Nov. 30.

The biofuels industry reacted immediately to the announcement. “This consent agreement is a good start,” said Renewable Fuels Association president and CEO Bob Dinneen. “We are particularly pleased that the Agency has committed to addressing the 2016 RVO in the same time frame even though that is outside the scope of the consent agreement.”

“By taking this action, they are ensuring that the RFS is back on a path to certainty for the biofuels industry, providing the necessary guidance for the industry to continue to thrive and advance alternative fuel options for American consumers,” Growth Energy CEO Tom Buis said.

“ACE has consistently said it is much more important for EPA to get the RFS done right than it is for them to get the RFS done quickly, and that bears repeating given today’s announcement that the RFS will be getting back on track for implementation,” said American Coalition for Ethanol (ACE) Executive VP Brian Jennings.

National Biodiesel Board is pleased the EPA announcement said they would “re-propose volume requirements for 2014, by June 1, that reflect the volumes of renewable fuel that were actually used in 2014.”

“The volumes for Biomass-based Diesel in 2014 were approximately 1.75 billion gallons so EPA reaffirming its commitment to “actual use” appears to be a step in the right direction,” said NBB Vice President of Federal Affairs Anne Steckel.

Advanced Ethanol Council (AEC) executive director Brooke Coleman says the announcement sends a good signal to the advanced biofuels industry. “Now that we have a better idea of when it will happen, we look forward to working with EPA to make sure that the new RFS proposal supports the commercial deployment of advanced biofuels as called for by Congress.”

EPA intends to issue a Federal Register Notice allowing the public an opportunity to comment on the proposed consent decree.

Another Successful ACE Fly-in

ACE executive VP Brian Jennings smiles as Sen. John Thune (R-SD) speaks at fly-in reception.

ACE executive VP Brian Jennings smiles as Sen. John Thune (R-SD) speaks at fly-in reception.

The seventh annual American Coalition for Ethanol Fly-in, which included an appearance by Sen. John Thune (R-SD), was another success for the organization, according to Executive Vice President Brian Jennings.

“We do this because we know lawmakers and their staff want to meet with people with a little dirt or grease under their fingernails who are doing things out in the country that really matter,” said Jennings. The group of 70-plus ethanol supporters who attended the event included students, producers, farmers, accountants, bankers, seed and technology companies, and advanced biofuels supporters.

“We’ve always received good feedback from members of Congress,” Jennings added, noting that their main message was to keep the Renewable Fuel Standard (RFS) on track, “This program is working despite what detractors might say,” he said. “I think members of Congress are starting to see that.”

Interview with Brian Jennings, American Coalition for Ethanol


2015 ACE Fly-In Photo Album

Ethanol Supporters Counter Funding Request

houseEthanol and agriculture industry groups sent their own letter to House Appropriations leadership in response to a group of lawmakers calling for the elimination of funding for blender pumps or corn ethanol export promotion.

The letter signed by the Renewable Fuels Association, American Coalition for Ethanol, National Farmers Union, National Corn Growers Association, and Growth Energy calls on the subcommittee to “vehemently oppose and reject any efforts to include such limiting language” in FY 2016 appropriations for USDA.

It is important to note at the outset that there already exists a prohibition on the US Department of Agriculture using grant funds for the installation of blender pumps, which was included in the recently passed Farm Bill. Now, in a blatant effort to shelter the oil and gas industry from any further competition from ethanol, Representatives Goodlatte, et al. are seeking to place limitations on the U.S. Department of Agriculture’s efforts to help promote the consumption of American made ethanol at home and abroad; something that agency has been successfully doing with other agriculture and livestock products for decades.

Reps. Bob Goodlatte (R-VA), Peter Welch (D-VT), and Jim Costa (R-CA), claim in their letter that the government has created an “artificial market” for ethanol that is “negatively impacting American consumers, livestock farmers, food producers, retailers, air and water quality, and the ability to feed our nation’s hungry.” The ag and ethanol groups responded that “corn prices today are below the prices witnessed in 2007 when the Renewable Fuel Standard was expanded and livestock feed costs are at their lowest levels in more than five years…Meanwhile, consumer food prices have advanced more slowly since passage of the RFS than in the 25 years prior to its enactment.”

Read the letter here.

Retailer Takes Ethanol Story to Hill

ace15-goodFuel retailers who have had to fight battles with big oil companies to offer higher ethanol blends were among those joining the American Coalition for Ethanol (ACE) Fly-in on Capitol Hill this week.

Charlie Good has been in the fuel retailing business for 35 years as a convenience store operator and auto mechanic and he started offering higher ethanol blends at his Good and Quick store in Nevada, Iowa about 18 months ago. “And it’s just been a big boom for me, it’s added new gallons, it’s increased my customer base,” said Good.

The Renewable Fuel Standard (RFS) was the main topic of ethanol supporter meetings with lawmakers and their staff this week and Good says even those they met with who have actively opposed the RFS are unlikely to vote for repeal. “The three of the five that we met with that were against it came out and said we’re not actually going to vote to repeal it…they’re just going to remain low key,” said Good.

Interview with Charlie Good, ethanol retailer


2015 ACE Fly-In Photo Album

Motor Club Rep: No Ethanol-Related Claims

ace-flyin-15-hammondWhile AAA may be an outspoken critic of ethanol blended gasoline and E15 in particular, some other motor clubs think differently, and one of them was on Capitol Hill this week with the American Coalition for Ethanol to tell his story to lawmakers.

Gene Hammond with Association Motor Club Marketing and Travelers Motor Club, which represent 50 years in the business and over 20 million members, says they studied their claims over the past several years to see if there were any related to ethanol. “And what we discovered is that we have not had one ethanol-related claim where we’ve had to go out and tow,” said Hammond. “In fact, the opposite is true.”

Hammond explains that claims related to gasoline freeze used to be common in the northern part of the country, “but that’s gone away, we don’t have that anymore with ethanol.”

Hammond was pleased to join ethanol supporters in Washington this week for the ACE Fly-in to tell members of Congress and their staff his experiences with ethanol from an automotive standpoint. Interview with Gene Hammond, AMCM and Travelers Motor Club


2015 ACE Fly-In Photo Album