ARF Reacts to Hillary Clinton’s Ag, Energy Plan

Presidential candidate Sec. Hillary Clinton (D) made another visit to Iowa this week where she unveiled her agriculture and rural policy plan. She called for strengthening the Renewable Fuel Standard (RFS) so that it continues to drive the development of advanced cellulosic and other advanced biofuels. Clinton called for more consumer choice at the pump with better access to ethanol blends such as E15 and E85 as well as biodiesel. She also called for more renewable energy to be phased into the electricity sector.

Sec Hillary ClintonAmerica’s Renewable Future (ARF), who is meeting with candidates to discuss the benefits of biofuels, released the following statement in response to the plan.

“We thank Sec. Clinton for her commitment to Iowa’s farmers, consumers, and investors with her call of a strengthened RFS. We enthusiastically echo that call, especially in light of President Obama’s Environmental Protection Agency’s (EPA) disastrous Renewable Volume Obligation (RVO) proposal. The EPA’s proposal is another example of conceding to the oil industry’s demands at the expense of clean, domestic renewable fuels and American jobs.

Billions of dollars were invested by famers and local investors to produce biofuels with the promise of a strong RFS. Reducing the RVO will strand capitol and punish the pioneers who invested in clean, homegrown renewable energy. The RFS has created 73,000 jobs here in Iowa and hundreds of thousands more around the country that cannot be outsourced, reduced our dependence on foreign oil, helped clean our air, and provided consumers savings at the pump.

Iowa’s rural communities and economy depend on the RFS for stability and growth and the EPA must get it back on track and focus on protecting the jobs and economic progress it has yielded.”

#ACE15 Success, Jennings Highlights What’s Next

The 28th Annual American Coalition for Ethanol’s (ACE) Ethanol Conference was a huge success. At times the room was stand-up only and the content was engaging and informational for attendees. I had a chance to sit down with Executive Vice President Brian Jennings who kicked off the conference and closed the conference and he said that there were a few presentations that really stood out.

The first was the retailer panel that featured Kum & Go and what they are doing to promote the use of E15 and other ethanol blends to consumers in the Midwest, along with Protec and what they are doing in a totally different way and different part of the country (South/Southwest) to bring ethanol to consumers.

Brian Jennings EVP of ACE“There are a lot of smart, progressive companies out there that see the advantage, that see the price advantage, see the other advantages that E15 and higher blends bring to the table,” said Jennings. “I know it’s frustrating for some in our industry because the progress of E15 is going as quickly as any of us like but progress indeed is being made and it’s a testament to the work that ACE and others are doing with the Kum & Gos in the world and the Protecs of the world.”

Another panel that was very informative, noted Jennings, was the panel of ethanol producers who are adopting new technologies and becoming pioneers of emerging technologies. These plants, he said, are leading the way in production improvements, in new product developments, bring in new revenues and help them diversify. Jennings hopes that other ethanol producers both at their conference and not, will look to these plants as examples and also embrace these new technologies and co-products.

The conference really focused on emerging technologies and wins in the industry but none the less talk of the Renewable Fuel Standard (RFS) was common among attendees. I asked Jennings what the next step was for ACE, on behalf of the industry, to keep the fight for the RFS front and center. He said that the industry has until November 30th to continue engaging with the Environmental Protection Agency (EPA) and they will continue to do just that. “They have mountains of comments they have to sift through and we’re proud of ACE and the ethanol industry on how many comments were submitted.”

“I am enormously frustrated with the EPA,” said Jennings. “I have to be honest. We try to be constructive, we try to be helpful, and they just really want to continue to base this thing on the blend wall. So we have our work cut out for us.”

ACE hopes to engage in a Power to the People campaign this fall in the beltway and around the country to educate consumers about the benefits of ethanol.

To learn more about the Ethanol Conference and what’s next for ACE, listen to my interview with Brian Jennings here: ACE's Brian Jennings Conference Review

2015 ACE Annual Meeting Photos

Protec Takes Unique E15, E85 Approach

Todd Garner, CEO of Protec Fuel, has more than 30 years in the fuel business. As such, he has been able to launch an interesting model in how they bring more choice at the pump by helping retail stations offer E15 and E85. The company started offering E85 in 2006 and has made incredible strides in getting more ethanol into the marketplace. But they do more than just distribute biofuels. They are also a large fuel logistics provider, basically, they do all of the aspects that any oil company might do but work primarily with small to midsize retailers and companies. Attendees were able to learn about their business model during the ACE Ethanol Conference last week in Omaha, Nebraska.

Todd Garner ProtecProtec is the largest supplier of ethanol to the military in the U.S. and has E85 stations on nearly every naval base in the country. And for the first time, they have begun to supply the rental car companies at the Nashville, TN and Charlotte, North Carolina airports. Garner said rental car companies used to buy their own fuel. Today it’s all done together and outsourced. So Protec has convinced these rental car operations to change to E15 because nearly all cars on the road can use this ethanol blend. Gardner said that they will continue to push this program with other rental car agencies located at airports across the country.

To learn more about how Protec is promoting/selling E15 and E15 listen to Todd Garner’s remarks here: Todd Garner, Protec

2015 ACE Annual Meeting Photos

Kum & Go, E15 Leader #ACE Award Honoree

Jim Pirolli Kum and GoKum & Go is well known in the Midwest, especially in states like Iowa and Nebraska where this year’s #ACE annual Ethanol Conference took place (Omaha). During the event, Jim Pirolli, Vice President of Fuels for Kum & Go talked about his company’s commitment to rolling out E15 stations as well as their efforts to continue to sell more E85. The retailer opened their first E15 station in Des Moines, Iowa recently with 6 more planned over the coming months.

How are they successful? Well, for starters they are price competitive at the pump. Pirolli said that Kum & Go recognizes that alternative fuels such as ethanol support local economies, better for the environment and help them deliver more to the customer than they might expect via an expanded product portfolio and also offering the economic and performance benefits. This summer they have done a very aggressive promotion campaign for E85 in Omaha and also for E15 in Des Moines. He did ask for help in helping to educate consumers about E15.

Listen to Jim Pirolli’s presentation here: Jim Pirolli, Kum & Go

Paul Dana Marketing Vision Award

American Coalition for Ethanol’s (ACE) Ron Lamberty (left) awards Jim Pirolli with Kum & Go the Paul Dana Marketing Vision Award.

Also during the event, Kum & Go was awarded the Paul Dana Marketing Vision Award, to honor a retailer who is supportive of ethanol. Ron Lamberty with ACE noted that the retailer has been an ongoing leader in ethanol selling E10 back in 1979, today as 170 E85 stations in 11 states. He praised them for stepping up for ethanol and for marketing the fuel aggressively and for being a leader in offering E15 to consumers.

Listen to Ron Lamberty’s remarks about Kum and Go here: Kum & Go Honored with Paul Dana Marketing Vision Award

2015 ACE Annual Meeting Photos

E15 Approved for 2016 Fiat Chrysler Models

2016-jeep Fiat Chrysler Automobiles (FCA) had approved the use of E15 (15 percent ethanol and 85 percent gasoline) in its model year 2016 Chrysler/Fiat, Jeep, Dodge and Ram vehicles.

According to the new owners manuals for the vehicles, “Non-Flex Fuel Vehicles (FFV) are compatible with gasoline containing up to 15% ethanol (E15).” The decision means that FCA joins General Motors and Ford in covering E15 in its warranty statements. GM started covering E15 with its MY 2012 vehicles, while Ford joined a year later with its MY 2013 vehicles. More than 12 percent of the vehicles sold so far in the United States in 2015 have been FCA vehicles.

“FCA’s decision to join GM and Ford provides clear evidence that the tide on E15 has turned,” said Renewable Fuels Association president and CEO Bob Dinneen. “FCA customers will be afforded a benefit that will likely lower their weekly motor fuel bill: the freedom to choose what fuel to put into their vehicles.”

RFA has been concerned about FCA’s reluctance to embrace E15 for the past three years, and Dinneen specifically called on Chrysler to approve E15 during his State of the Industry address at this year’s National Ethanol Conference.

NREL Studies E15 Infrastructure

Kristi Moriarty NRELThe National Renewable Energy Laboratory (NREL) has been studying current gas retailer’s infrastructure to determine if the equipment is already certified for E15 and flex fuels such as mid-level ethanol blends (E30, E40, E85). If so, the cost to a retailer adding E15 and other ethanol blends will be much less than a retailer who has to upgrade all his/her equipment – a definite cost barrier to more stations adopting emerging ethanol blends.

During the American Coalition for Ethanol’s (ACE) annual Ethanol Conference, held in Omaha, Nebraska, NREL Senior Analyst Kristi Moriarty, discussed the study and demonstrated how retailers can identify opportunities with their current fueling equipment and begin the process of adding E15 as one of their fuel choices.

Listen to Kristi Moriarty’s presentation here: Kristy Moriarty, NREL

2015 ACE Annual Meeting Photos

E15 Update at #ACE15

ace15-lambertySteve Jobs once said “A lot of times, people don’t know what they want until you show it to them” and American Coalition for Ethanol Senior Vice President Ron Lamberty believes that applies to E15 (15% ethanol blended gasoline) and other higher blends.

“What we’ve seen in the places where E15, E30, E85 have been shown to people, they like them,” said Lamberty during his industry update at the annual ACE conference this week in Omaha. “We need to keep doing what we’re doing and keep showing people the light.”

Lamberty talked about the experiences of some successful higher ethanol blend retailers like Charlie Good in Iowa and Bruce Vollan in South Dakota.

Listen to Ron’s update at the ACE conference here: Ron Lamberty, ACE Senior VP

2015 ACE Annual Meeting Photos

RFA to AMA: Stop Propagating E15 Untruths

As the biofuels industry celebrates the 10th anniversary of the Renewable Fuel Standard (RFS) the American Motorcyclist Association (AMA) is calling on consumers to support legislation to stop the use and sales of E15 (15 percent ethanol/85 percent gasoline). In a press release AMA states, “The first 10 years under the Renewable Fuel Standard, established in 2005, represent a decade of misinformation from the ethanol lobby concerning safe fuel for your motorcycle.”

sturgis-15-1The Association is calling on motorcyclists to contact their representative and ask him/her to cosponsor the RFS Reform Act of 2015 (H.R. 704) sponsored by U.S Reps. Bob Goodlatte (R-VA) and Peter Welch (D-VT). The bill would amend the RFS and prohibit the U.S. Environmental Protection Agency (EPA) from allowing any station to sell gasoline containing more than 10 percent ethanol (E10) and require those selling E15 to stop.

In response to AMA, the Renewable Fuels Association’s (RFA) Vice President of Industry Relations Robert White said, “Once again, the AMA is engaging in scare tactics and spreading misinformation about E15. It’s nothing we haven’t heard before. AMA’s claims that E15 will suddenly become available at every fuel station in the country and replace E10, so that there will no longer be any legal fuel for motorcycles to use, are patently false. E15 has been on the market for three years and no motorcycle has misfueled using the higher ethanol blend or has been denied a warranty claim. Plus, the AMA ignores the fact that the Environmental Protection Agency (EPA) requires that the fuel dispenser label clearly identify what vehicles can and cannot use E15. Does the AMA believe that motorcyclists can’t read?”

White said that the availability for motorcycles to use E10, which is approved for use in motorcycle engines, increased last year, and that more E10 than E0 was sold last year than in the previous year. Earlier this month, RFA was at the 75th Anniversary of Sturgis where they spoke with bikers about ethanol.

“The AMA has gone to great lengths to confuse what the RFS means for consumers,” White continued. “The law states that gasoline refiners and importers must purchase and blend renewable fuels with gasoline and diesel, or purchase credits. Most producers choose to blend renewable fuels because ethanol is cheaper than gasoline and has an octane rating of 113, but the availability of credits assures no marketer will ever have to offer higher level ethanol blends if they don’t want to.” Continue reading

RFA to EPA: Provide Consumers Relief at Pump

In light of a refinery shutdown of the BP plant in Whiting, Indiana that produces 240,000-barrels-per-day, the Renewable Fuels Association President and CEO Bob Dinneen is asking the Environmental Protection Agency (EPA) to provide consumers relief at the pump. Late last week, gas prices jumped an average of 80 cents per gallon overnight in several states including Illinois, Michigan Indiana, Ohio, Missouri and Wisconsin as well as other states including Iowa.

BP refinery in Whiting, Indiana. Photo Credit: GasBuddy.com

BP refinery in Whiting, Indiana. Photo Credit: GasBuddy.com

“The Whiting refinery outage demonstrates, once again, the folly of relying too heavily on one source of motor fuel. It’s worth noting that the refinery represents just 6 percent of the Midwest region’s refining capacity (and just 1 percent of national refining capacity); yet retail gas prices in some Midwest markets have spiked by 50 cents per gallon or more,” said Dinneen. “This is exactly why we need to further diversify our nation’s fuel supply and allow more renewable fuels by removing arcane barriers erected by the oil companies and the Environmental Protection Agency (EPA). Using more low-cost ethanol would absolutely help insulate consumers from these kinds of price shocks.”

Dinneen said that the total lost gasoline output, nearly 120,000 barrels per day, could be offset by increasing ethanol blends from E10 to E15. He sourced ethanol prices in the Chicago wholesale market as around $1 per gallon lower than gas. It should be noted that during the summer months, E15 is only allowed to be used by flex fuel vehicles although the rest of the year the ethanol blend can be used by all vehicles manufactured in 2001 or newer.

“That means, Dinneen said, “if refiners and blenders serving the Midwest market immediately switched to producing E15 to blunt the impacts of this refinery outage, gas prices would instantly fall by at least 5 cents per gallon and drivers in the Midwest would save about $6 million per day. In reality, the price impacts would likely be even more significant, as ramping up ethanol blending would immediately take the pressure off tightening gasoline stocks and ease wholesale gasoline prices.”

Dinned added, “EPA and the Obama Administration have all the tools they need to help alleviate this situation quickly. We call on EPA to immediately waive RVP requirements for E15 and also allow E12 blending—based on the fact that it is substantially similar to E10—in the Midwest region to facilitate expanded ethanol blending and blunt the consumer impacts of this refinery outage.”

Minnesota Coop to Offer E85 For 85 Cents A Gallon

pump3E85 (85 percent ethanol/15 percent gas) will be available for 85 cents a gallon at the Farmers Coop Elevator in Bellingham, Minnesota on Wednesday, August 19 from 3:00 pm to 5:00 pm. Located at 300 Railroad Road, the promotion will also offer a 30 cents per gallon discount on E30 and a 15 cents discount per gallon on E15. The fuels are only available for flex fuel vehicles (FFVs). To see if your car can run on higher blends of ethanol, visit www.MNFuels.com.

“These promotions are a great opportunity for drivers of flex fuel vehicles to give these cleaner-burning fuels a try,” said Robert Moffitt, communications director for the American Lung Association in Minnesota. “Because flex fuel vehicles can also run on conventional gasoline blends, many owners don’t realize they can also use a fuel that reduces air pollution and usually costs less than gas.”

The American Lung Association in Minnesota recognizes the role cleaner-burning fuels like E85 have in reducing harmful tailpipe emissions and reducing air pollution. Other supporters include the Bellingham Farmers Elevator, Lac qui Parle County Corn & Soybean Growers, Minnesota Corn Growers Association and the Minnesota Clean Air Choice Team. For more information on the ethanol and other cleaner fuels available in Minnesota, visit www.CleanAirChoice.org.