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Setback in Ethanol Case Against California LCFS

Cindy Zimmerman

The ethanol industry has been handed a setback in its case against the California Air Resources Board Low Carbon Fuel Standard (LCFS) that was ruled unconstitutional by a judge in December.

From a Growth Energy statement: Yesterday, the U.S. Court of Appeals for the 9th Circuit issued an order expediting briefing in the California Air Resources Board’s appeal of a Federal District Court decision invalidating the state’s Low Carbon Fuel Standard (LCFS). On December 29, 2011, the District Court issued an injunction to prevent CARB’s enforcement of the LCFS, having found the LCFS unconstitutional in its regulation of commerce outside the state and discrimination against fuel produced outside California.

The Court of Appeals also stayed the District Court’s decision and the injunction until the Court of Appeals can fully review the District Court’s December 2011 decision. Briefing will be completed by early summer. The ethanol industry plaintiffs look forward to fully briefing the issues before the Court of Appeals on the expedited schedule that the Court has issued.

While environmental interests, like the Natural Resources Defense Council, are happy about the decision, the ethanol industry is confident the original court ruling will ultimately be upheld.

“The ruling made by Federal District Court Judge Lawrence O’Neill finding the LCFS unconstitutional was based on sound legal precedent and should stand,” said Renewable Fuels Association President and CEO Bob Dinneen. “At its core, we believe the LCFS to be unlawfully written and decidedly punitive against ethanol produced in United States but outside the borders of the state of California. We will vigorously defend our position and support the ruling of Judge O’Neill.”

The oil industry is united with corn-ethanol producers on this issue because they believe the mandate is unfairly punitive to out-of-state fuel suppliers.

corn, Ethanol, Ethanol News

Governors Want E85 Called Alternative Fuel

Cindy Zimmerman

Governors Biofuels CoalitionThe Governors’ Biofuels Coalition is urging the Senate Finance and House Ways and Means Committees to include E85 in the definition of the Alternative Fuel Tax Credit and recommending that the provision be extended as part of the pending “Extenders Bill.”

In a letter sent to the leadership of both committees last week, the governors noted that E85 was considered an alternative fuel for federal energy policy purposes under the Energy Policy Act of 1992, but Congress wrote E85 out of the alternative fuels credit in order to avoid a double tax benefit with both the ethanol tax credit and the alternative fuels tax credit in effect. “Now that Congress has ended the ethanol credit, E85 could continue to benefit from the alternative fuels incentive,” they said.

The coalition, which is made up of the governors of 33 states, say that if E85 is not included in the alternative fuel tax credit, flex fuel vehicle drivers will pay as much as 38 cents more per gallon, significantly reducing the demand for the fuel. “On the other hand, extending the credit with E85 would only cost the Treasury approximately 0.8% of the full, expired ethanol subsidy. We believe this small, short-­‐term investment will make a significant difference in the success of petroleum fuel alternatives,” they added.

Defining E85 as an alternative fuel in the tax code is one of the main goals of the Coalition for E85, a group of retailers, producers, equipment manufacturers, automobile manufacturers and other supporters of E85 fuel.

E85, Ethanol, Ethanol News, Government

E15 Fuel Survey Satisfies Final EPA Requirement

Cindy Zimmerman

The final federal hurdle to getting 15% ethanol at the pump has officially been satisfied with the funding of a nationwide fuel survey required by the Environmental Protection Agency (EPA).

The ethanol industry reports that a total of 99 ethanol producers are funding the survey to meet the requirement under the partial waiver approved by EPA.

“Despite owning just a handful of the nation’s 160,000 gas stations that will be the actual participants in the survey, ethanol producers are providing the lion’s share of funding for this survey in order to bring a higher performing, lower cost fuel to the market in E15,” said the Renewable Fuels Association (RFA), Growth Energy, and the American Coalition for Ethanol (ACE) in joint announcement praising the industry for stepping up to the plate to help bring E15 to the market.

Efforts to bring E15 to pumps across the nation will now focus on states where regulatory issues must be addressed. Some states, like Iowa, Illinois, and Kansas are prepared for E15 and sales of E15 could commence as soon as all parties are registered with EPA and are implementing the Misfueling Mitigation Plan approved by EPA. However, challenges such as pending litigation and anti-ethanol posturing by some in Congress, make it difficult to predict an exact time frame for the growth of E15 sales volumes nationwide.

The fuel survey is required annually and will be conducted by RFGSA. The survey will be collecting more than 7500 samples each year of all gasolines available nationwide and will begin on May 1, 2012.

ACE, Ethanol, Ethanol News, Growth Energy, RFA

Energy Coalition Disappointed in Farm Bill Draft

Cindy Zimmerman

A coalition of trade groups and organizations representing renewable energy, energy efficiency, farm and environmental interests is disappointed in a 2012 Farm Bill draft out of the Senate Agriculture Committee that they say provides “no real funding for energy programs.”

“The Committee draft bill moves the process forward, thankfully, and we support getting a bill done this year,” said Ag Energy Coalition Co-director Lloyd Ritter in a statement. “However, the core energy title programs that are necessary to move the country toward greater energy security, increase jobs, revitalize manufacturing, and improve environmental quality require mandatory funding. REAP, BCAP, Biorefinery Assistance and BioPreferred, among others, have produced results across the country, especially in rural America where jobs are dwindling.”

Coalition member Brent Erickson of the Biotechnology Industry Organization (BIO) noted that the Farm Bill’s energy programs have helped revitalize rural America, allow new agricultural markets emerge, and reduce the need for direct payments to farmers. “These programs have unlocked private capital for construction of biorefineries, put more than 150,000 acres of underutilized farmland into production of next-generation energy crops, and ignited an explosion of biomanufacturing innovation, demonstration and early commercialization,” said Erickson. “In the short time that these programs have operated, they’ve achieved a high rate of return in supporting the start up of renewable chemical, advanced biofuel and biomanufacturing companies, as a timeline of the programs demonstrates.”

The Senate Agriculture Committee is scheduled to begin markup on the Farm Bill this week and the House Ag Committee will also be working on the legislation.

BIO, biofuels, biomass, Energy, Ethanol, Ethanol News, Government

America Can Achieve Energy Victory

Joanna Schroeder

If the United States puts its mind to it, energy victory can be achieved. How? Energy expert Dr. Robert Zubrin, author of Energy Victory has the formula for success.  Zubrin recently spoke at the Indiana Ethanol Forum, and fellow journalist Meghan Grebner of Brownfield Ag News interviewed him after his presentation asking him what the most important thing people should take away from his presentation.

“The most vital threat to America right now is its energy insecurity,” answered Zubrin. “The number one responsibility of the federal government is national defense. That means defending us from being looted by the foreign oil cartel; defending us from being brought to our knees for lack of fuel. In order to weaken the power of the cartel, and as well as lower the price of oil, and benefit our economy, we need other options.”

Zubrin said we need to have fuel choice both as a nation and as individuals.  He also explained that we need to put our domestic resources, such as the agricultural sector, to work solving the problem, but right now we’re being blocked from using what we have.  “We are not addicted to oil, our cars our addicted to oil,” said Zubrin.

The solution? Enabling our cars to use other fuels that are not controlled by the oil cartel.

Listen to Dr. Robert Zubrin’s entire interview to learn more about how America can achieve energy victory. Robert Zubrin

Thanks to Brownfield Ag News for sharing this interview with Domestic Fuel.

Audio, biofuels, Energy, Ethanol, Ethanol News, transportation

Dinneen Asks For Support of Biofuels During Hearing

Joanna Schroeder

The key to continued growth, says Renewable Fuels Association (RFA) President and CEO Bob Dinneen, is the availability of higher level ethanol blends such as E15 and other renewable fuels. Dinneen submitted written testimony to the House Energy and Commerce Committee Subcommittee on Environment and Economy on April 19. Dinneen testified in support of the Domestic Fuels Protection Act, aimed at easing the regulatory burden for fuel retailers to offer consumers additional renewable fuels at the pump, including E15.

“[T]he current regulatory structure provides no pathway to certify existing equipment for anything other than fossil fuels, even when test data demonstrates its safety,” Dinneen testified. “The Domestic Fuels Protection Act allows EPA to create such a process, thereby providing new fuels access to the marketplace without having to expend time and resources on new infrastructure unnecessarily.”

The goal of the Domestic Fuels Protection Act is to protect retailers. If equipment used by retailers to dispense EPA approved fuels meets fuel specifications, and a retailer properly informs customers about the approved use of the fuel, then they will be protected from any meritless lawsuits. It is important to understand that this Bill does not in any way effect the Renewable Fuels Standard (RFS) nor current approvals for the sale and use of E15.

“I can say without hyperbole or reservation that the RFS has been the most successful energy policy this nation has ever implemented,” continued Dinneen. “It should be vigorously defended and maintained, and allowed to reach its full potential of 36 billion gallons of clean burning, renewable fuel.” But to achieve this, market access for ethanol and other renewable fuels must be expanded.

Dinneen concluded, “The RFS is entering a critical period, however. The volumes of renewable fuel refiners are required to meet can no longer be met by just 10% ethanol. Greater volumes of ethanol and a greater diversity of biofuels and feedstocks will be necessary to meet the increasing volumes required by the RFS. Critically, these fuels will be attempting to enter the marketplace amidst a complicated regulatory structure that favors incumbent technologies and discourages market access. Gasoline marketers deserve the certainty that they will not be penalized for utilizing a new fuel or fuel blend that has been approved for use by the U.S. Environmental Protection Agency (EPA).”

biofuels, Ethanol, RFA

Obama Maintains Commitment to Biofuels

Joanna Schroeder

According to a top aide to President Obama, the White House is still highly supportive of renewable fuels. Heather Zichal, Deputy Assistant to the President for Energy and Climate Change made this statement during the Renewable Fuels Association’s Washington Legislative Forum that was held this week at the Newseum in Washington, DC.

“One of those most promising [clean energy] industries has been American biofuels,” said Zichal. “Right now, domestic biofuel production is at the highest level ever. In fact, monthly production has increased more than 40% in the last three years. That means that biofuels are already reducing our dependence on oil, cutting pollution, and creating jobs across the country.”

Zichal referenced the need to continue the expansion of the biofuels industry that includes advanced technologies. Last year, President Obama set a goal of breaking ground on at least four commercial scale cellulosic or advanced biorefineries by 2013. She said this goal has been met ahead of schedule and combined, the biorefineries will produce nearly 100 million gallons of advanced biofuels each year.

“[S]o last week, we were encouraged when the biofuels community stood behind EPA’s implementation of the Renewable Fuels Standard – which we think is critical tool to promote growth in renewable fuels production in the years ahead,” said Zichal. “At the same time, we’re taking steps to help level the playing field. Not only has the Administration supported repealing subsidies for oil and gas companies, the President announced yesterday that we’re taking new steps to crack down on manipulation in the oil markets to help protect consumers at the pump.”

While production is important, Zichal also underscored the Obama Administration’s commitment to infrastructure and deployment of renewable fuels and technologies. “Now, as we produce more biofuels, it’s also important that we focus on deployment. If you think back to when America was moving from horseback to rail and then cars and trucks, we didn’t say your own your own. We laid tracks and paved roads and built bridges to accelerate the transition. We need to make a similar effort on biofuels.”

Zichal commended the work beging done by various government departments including the Dept. of Agriculture and Dept. of Energy to bring biofuels, such as ethanol to the market.

“The Obama Administration has been a trusted and reliable partner with America’s growing and evolving ethanol industry,” added RFA President and CEO Bob Dinneen. “President Obama and his team appreciate the vital contributions already being made by existing ethanol producers and are committed to ensuring the commercialization of promising new ethanol technologies.”

advanced biofuels, biofuels, Ethanol, RFA

Solar Power Fastest Growing Utility Source in 2011

Joanna Schroeder

New findings by the Solar Electric Power Association (SEPA) have found that solar power is the fastest growing source of energy for the utility sector in 2011. Solar power capacity grew by 120 percent from 2010 as utility companies contract for more solar power. In 2011, utilities installed more than 62,000 PV systems of various sizes that equates to nearly 1,500 megawatts of electricity per year. If the pace of solar power adoption continues, 2012 should be another record breaking year.

“In addition to the photovoltaic systems added by customers and third-party producers, much of the growth has come from the direct actions of utilities,” says Julia Hamm, SEPA President and CEO. The findings show that 39 percent of new solar capacity came from utilities owning or contracting for solar power. Large solar projects, greater than 10 megawatts each, represent the bulk of this capacity.

The two regions of the greatest growth were the Southwest and the east. The Top 10 utilities, according to SEPA’s annual Utility Solar Rankings survey, added more than 1,000 megawatts of solar power in 2011. Overall, 240 utilities added solar capacity in 2011 for a total of 1,500 megawatts. The installed capacity represented a mix of large utilities, rural co-ops and consumer installed systems. This is equivalent to six new natural gas power plants.

“This is a marked shift from a few years ago, when customer-owned, net-metered systems dominated installed solar generation,” said Hamm. “Today, utilities are taking a greater role in the expansion of solar power in the United States.”

Pacific Gas & Electric held the top spot for the 4th straight year. Public Service Electric & Gas Co. based in New Jersey was also in the top 10 along with Southwestern Public Service based in New Mexico. The full report will be available in May 2012.

Electricity, Energy, Solar

Jerome Taylor Awarded Champion of Change

Joanna Schroeder

MFA Oil CEO Jerome Taylor has been recognized by the White House for being a Champion of Change due to his cooperative’s work in helping to build the renewable energy industry. He was one of nine people honored by the White House yesterday and is no stranger to the biofuels industry. In 2006, Taylor was honored with the Fields to Fuel Marketing Award (now the Paul Dana Marketing Vision Award) by the American Coalition for Ethanol (ACE) for his support of ethanol.

“Jerry Taylor and MFA were already promoting ethanol and making E85 available in their Break Time convenience stores and 24-hour cardlock sites when ACE started our Market Development program twelve years ago,” said ACE Senior Vice President Ron Lamberty. “Jerry picked up some of our “Why is Ethanol Good for My Car” brochures at a Missouri Petroleum marketers’ trade show, and over the next several years MFA distributed tens or even hundreds of thousands of them through their retail units.”

Lamberty continued, “MFA has provided a roadmap for other petroleum marketers who want to promote and sell ethanol profitably, and ACE is thrilled that those efforts have been rewarded with recognition by the White House.”

ACE, biofuels, Ethanol

Sen. John Hoeven Discusses Domestic Fuels Act

Joanna Schroeder

The Renewable Fuels Association (RFA) hosted it’s first ever Washington Legislative Forum this week and Senator John Hoeven took time to discuss the elements of the bipartisan Domestic Fuels Act that was released this past March. The discussion was timely as RFA recently released results of a poll showing that 58% of respondents were more likely to purchase fuels with higher domestic renewable fuel content, like E15, when available.  The Domestic Fuels Act is aimed at making it easier for retailers to offer consumers higher blends of ethanol.

“We need to make all fuels available to American consumers and businesses, and we need to do so by using market-based measures that increase competition and remove bureaucratic obstacles to producing and marketing renewable fuels,” said Hoeven. “This is really about giving customers more choice and better prices at the pump by empowering retailers to market multiple fuels using the same equipment. That’s good for the customer, good for business and good for the nation.”

Hoeven pointed out some specific benefits of the Act that included:

  • Streamline the process so that all fuels, both traditional and renewable, can be stored and dispensed with common equipment.
  • Provide liability protection for retailers that meet the streamlined EPA standards, so that they can sell multiple types of fuel with less red tape, providing consumers with more choice and lower fuel prices.
  • Establish a new pathway for retailers to ensure that their equipment is safe and legally recognized as compatible to sell new fuels, thereby reducing the cost of entry for many retailers.

RFA President and CEO Bob Dinneen added, “Expanding the availability of fuel choices like E15 directly reduces America’s demand for imported oil and creates jobs and economic opportunities that cannot be outsourced. The Domestic Fuels Act is a perfect example of the kind of thoughtful policies that can be created when all stakeholders work together for the common good.”

biofuels, Ethanol, RFA