Consumer Energy Alliance Opposes California LCFS

Cindy Zimmerman

The ethanol industry has an unlikely ally in its opposition to the California Low Carbon Fuel Standard that bans the use of corn ethanol in that state. A diverse multi-state coalition that is primarily concerned with the rule’s impact on oil and gas is also opposed.

The Consumer Energy Alliance, a coalition of over 170 energy consumer groups and 300,000 individual members across the United States, is one of the plaintiffs opposing the California LCFS, which was just ruled unconstitutional by a district court judge.

“Not only is an LCFS unconstitutional, but it would also hurt the California economy, farmers, consumers and truckers by raising fuel prices sharply and burdening consumers,” said CEA Executive Vice President Michael Whatley. “And ironically, the policy will have the opposite of its intended effect by creating more greenhouse gases in the long run.”

The CEA’s main concern about the California LCFS is the potential for it to be used to prevent certain sources of petroleum from being converted into fuels such as gasoline, diesel fuel, kerosene and heating oil and that it could adopted nationwide, resulting in lost jobs and declining household revenue.

After the district court judge this week rejected a motion by the state to continue implementing the LCFS despite his ruling that it was unconstitutional, the California Air Resources Board (CARB) decided to appeal to a new court in the 9th Circuit in hopes of a different outcome.

“The decision by CARB to appeal the decision by the District Court is disappointing, but unfortunately not surprising. We look forward to a decision by the Ninth Circuit upholding the District Court and confirming the unconstitutional nature of California’s low carbon fuel standard,” said Whatley, urging CARB to “scrap this faulty program” instead of appealing the decision.

Energy, Ethanol, Ethanol News, Oil

How to Turn Oil into Salt

Cindy Zimmerman

The idea of turning oil into salt may sound like something that should be done in a science lab but Dr. Gal Luft says it’s something that Congress can do with a simple piece of legislation.

Luft, who is executive director of the Institute for Analysis of Global Security, explained his analogy between oil and salt at the 6th Annual Iowa Renewable Fuels Summit in Des Moines on Tuesday.

“Salt used to be the most strategic commodity of all because it was the only way to cure food,” said Luft. “That changed with the invention of canning and refrigeration. Those two simple technologies essentially stripped salt of its strategic status.”

“Just like salt dominated food preservation, oil today dominates transportation,” he continued. “And just like salt’s strategic status was diminished through those simple inventions, oil’s strategic status can be diminished through the technology of flexible fuel vehicles.”

That’s why Luft strongly advocates the simplest solution to diminishing the stranglehold oil has on the transportation industry, and that is requiring all new vehicles sold in the United States to be capable of running on a variety of fuels. “Whether it is ethanol or methanol or butanol, whatever it is, let’s give people choices,” he said, noting that there is just such a bill pending in Congress called the Open Fuel Standard Act.

Luft and co-author Anne Korin wrote a book about the analogy between salt and oil and the importance of fuel choice, called “Turning Oil into Salt”, which was reviewed here on Domestic Fuel in 2009.

Listen to Luft’s address to the 6th annual Iowa Renewable Fuels Summit here: Gal Luft address

Listen to a brief interview with Gal Luft here: Gal Luft interview

Photos from 2012 Iowa Renewable Fuels Summit

Audio, Energy, Ethanol, Ethanol News, Government, Iowa RFA, Oil

Ag Secretary to Speak at Ethanol Conference

Cindy Zimmerman

Agriculture Secretary Tom Vilsack will be a headline speaker on Friday, February 24th, at the 17th annual National Ethanol Conference, which is being held February 22-24 at the Gaylord Palms Resort and Convention Center in Orlando.

During his tenure, Secretary Vilsack has been a champion for all domestic renewable fuels, including ethanol. Secretary Vilsack has led the charge to modernize America’s fueling infrastructure through the installation of blender pumps. Under his leadership, USDA is investing in new ethanol technologies that will turn abundant materials like grasses, wood wastes, ag residues, and municipal solid waste into ethanol. And, Secretary Vilsack has been a steady voice is combating falsehoods about ethanol, including soundly refuting claims ethanol is the driving factor behind rising food prices.

Those interested in registering for the conference should do so by Thursday, January 25 to save $100 on the registration fee and ensure a room at the convention hotel. After Thursday, the room block will be released and the registration rate goes up. Registration information is available at nationalethanolconference.com.

Ethanol, Ethanol News, RFA, USDA

Iowa Governor Proud of Renewable Fuels Leadership

Cindy Zimmerman

Iowa Governor Terry Branstad is proud of his state’s leadership in the renewable fuels industry.

“The state of Iowa is number one in ethanol, number one in biodiesel, we’re number two in wind energy but that’s number two to Texas and if you look at it per capita, we’re number one in that as well,” Branstad said at the 6th Annual Iowa Renewable Fuels Summit on Tuesday.

“The renewable fuels industry has been good for Iowa,” he said. “In 2011, the renewable fuels industry supported 82,000 jobs in the Iowa economy and provided $3.7 billion in household income in our state. The industry had over $6 million in revenue.”

Those numbers come from the latest study on the importance of renewable fuels to Iowa by economist John Urbanchuk, technical director of Cardno ENTRIX. (Link to study)

Listen to Branstad’s address to the 6th annual Iowa Renewable Fuels Summit here: Iowa Governor Terry Branstad address

Photos from 2012 Iowa Renewable Fuels Summit

Biodiesel, Ethanol, Ethanol News, Iowa RFA, Wind

Child Labor Regs For Ag Bad For Farming

Chuck Zimmerman

Our latest ZimmPoll asked a very timely question since it’s on a topic that is the subject of a cover story on USA Today. We asked, “How will proposed changes to child labor in agriculture regulations affect farms?” Seventy percent said Negatively, seventeen percent said No Effect and only thirteen percent said Positively.

You may know that last fall the Department of Labor proposed changes that many believe could have major impacts on family farms and farm life (proposed rule – pdf). This is just another example of unnecessary government intrusion in private business and lives in my opinion. We don’t need it but . . . as if the government knows better. Riiight. You can find out more from this DOL early news release.

Our new ZimmPoll is now live and asks the question, “Do you agree with President Obama’s call for more clean (renewable) energy?” Let us know what you think. He definitely issued a call during his State of the Union speech last night. Here’s an excerpt:

We have subsidized oil companies for a century. That’s long enough. It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising. Pass clean energy tax credits and create these jobs.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

ZimmPoll

Obama Calls for End to Oil Subsidies

Cindy Zimmerman

In his State of the Union address Tuesday night, President Obama voiced strong support for renewable energy and an end to oil subsidies.

“We have subsidized oil companies for a century. That’s long enough,” the president said. “It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising. Pass clean energy tax credits and create these jobs.”

Mentioning natural gas, wind and solar specifically, Obama called for using various types of renewable energy solutions to make the country less dependent on oil alone. “This country needs an all-out, all-of-the-above strategy that develops every available source of American energy – a strategy that’s cleaner, cheaper, and full of new jobs,” he said.

Energy, Ethanol, Ethanol News, Government, Solar, Wind

Retired Army General Calls Biofuels “Ammunition”

Cindy Zimmerman

Like oil in World War II, U.S. Army Ret. General Paul J. Kern believes that biofuels are the “ammunition” for America today.

Gen. Kern ended his address to the 6th Annual Iowa Renewable Fuels Summit in Des Moines on Tuesday on that note, displaying a WWII military poster declaring “Stick to your job – oil is ammunition.”

“It’s your job to change that from oil is ammunition to alternative fuels are ammunition,” he said. “We need that for our country and for our Department of Defense. Your military relies on fuel to do the job that we ask them to do.”

The main focus of the highly decorated retired army general’s address was on the national security dimensions of fuel.

Listen to Gen. Kern’s address to the 6th annual Iowa Renewable Fuels Summit here: Gen. Paul Kern address

Listen to a brief interview with Gen. Kern here: Gen. Paul Kern interview

Photos from 2012 Iowa Renewable Fuels Summit

Audio, Biodiesel, Ethanol, Ethanol News, Iowa RFA

Iowa Renewable Fuels – Revived and Ready

Cindy Zimmerman

The 6th Annual Iowa Renewable Fuels Summit kicked off in Des Moines on Tuesday on a very positive note, considering that 2011 was a record year in the state for both ethanol and biodiesel.

In his annual address to the summit, Iowa Renewable Fuels Association Executive Director Monte Shaw noted that the state’s 41 ethanol plants produced 3.7 billion gallons of ethanol. “If Iowa were a country, it would be the third largest ethanol producer in the world, behind only the rest of the United States and Brazil,” said Shaw.

He also noted that with the return of the biodiesel tax credit in 2011 helped most of Iowa’s biodiesel plants return to production. “Ten Iowa biodiesel plants operated during 2011 produced a record 169 million gallons,” said Shaw.

However, Shaw noted that the challenges facing biofuels are just as strong as ever. “I know it’s hard to believe, but not everyone in America enjoys the renewable fuels success story,” he said, outlining the attacks against ethanol in particular by the food and oil industries. “Today the oil industry enjoys billions of dollars in tax subsidies while the renewable fuels industry has none,” said Shaw, proceeding to name off all of the subsides unique to the oil industry.

Shaw outlined the priority issues for the renewable fuels industry in 2012 as getting the biodiesel tax credit reinstated, keeping the Renewable Fuel Standard in place, and getting E15 commercially available.

Listen to Shaw’s address to the 6th annual Iowa Renewable Fuels Summit here: IRFA Executive Director Monte Shaw address

Photos from 2012 Iowa Renewable Fuels Summit

Audio, Biodiesel, Ethanol, Ethanol News, Iowa RFA

Judge Denies Attempt to Enforce California LCFS

Cindy Zimmerman

The federal district court judge who ruled California’s Low Carbon Fuel Standard (LCFS) to be unconstitutional has denied a motion to continue implementation of the law.

On Monday, Judge Lawrence J. O’Neill denied the California Air Resources Board’s (CARB) motion to stay the decision he issued on December 29, 2011 that had halted the enforcement of the LCFS regulation because that regulation is unconstitutional.

RFAOn Friday, January 20, 2012, CARB filed papers asking the Court to reverse its decision and allow the state to continue implementing the LCFS in 2012. Judge O’Neill ruled that CARB “improperly seeks to relitigate issues this Court resolved in its order granting the preliminary injunction and orders on the summary judgment motions.” He further noted that CARB sought not to preserve the “status quo” but rather to “allow enforcement that imposes higher restrictions than had been imposed previously” without citing any authority to show why the Court would have jurisdiction to grant that type of relief.

Growth Energy“Judge O’Neill’s decision demonstrates the strength of our claims against the LCFS,” said Renewable Fuels Association President and CEO Bob Dinneen and Growth Energy CEO Tom Buis in a joint statement. “The California LCFS seeks to regulate conduct outside its borders and is blatantly discriminatory and unconstitutional. American ethanol advocates will continue to oppose CARB’s effort to reinstate this punitive policy that illegally seeks to dictate the production and transportion of ethanol and other fuels outside its border.”

CARB has appealed Judge O’Neill’s finding that the LCFS violates the Commerce Clause of the Constitution. That litigation is in the 9th Circuit Federal Court of Appeals.

Ethanol, Ethanol News, Growth Energy, RFA

POET Partners With DSM for Cellulosic Ethanol

Cindy Zimmerman

Ethanol giant POET is partnering with a Netherlands-based life sciences company with the intention of making advanced biofuels a reality by next year.

POET has announced a joint venture with Royal DSM to commercially demonstrate and license cellulosic bio-ethanol based on their proprietary and complementary technologies. POET–DSM Advanced Biofuels, LLC, is scheduled to start production in the second half of 2013 at one of the first commercial-scale cellulosic ethanol plants in the United States.

The two partners will produce cellulosic ethanol from corn crop residue through a biological process using enzymatic hydrolysis followed by fermentation. The first commercial demonstration of the technology will be at Project Liberty, which is currently being constructed adjacent to POET’s existing corn ethanol plant in Emmetsburg, Iowa. The initial capacity is expected to be 20 million gallons in the first year, growing to approximately 25 million gallons per year.

POET-DSM Advanced Biofuels, LLC, intends to replicate and license the technology to additional plants to be built at the other 26 corn ethanol facilities in POET’s network and license it to other producers in the United States and the rest of the world. The U.S. Environmental Protection Agency (EPA) estimates that in the United States as many as 350-400 new bio-refineries will have to be constructed by 2022 to meet the volume requirement of 16 billion gallons/year of cellulosic bio-ethanol under the Renewable Fuel Standard.

DSM and POET will each hold a 50% share in the joint venture, which will be headquartered in Sioux Falls, South Dakota. The initial capital expenditure by the joint venture in Project Liberty will amount to about $250 million. The closing of the joint venture is subject to regulatory approvals and other customary closing conditions.

As a result of the joint venture project, POET has also announced its intent to decline the $105 million loan guarantee it was awarded by the U.S. Department of Energy (DOE) in September. POET will officially decline the guarantee prior to drawing any funds when the joint venture closes.

Listen to some comments from DSM Managing Board Chairman/CEO Feike Sijbesma and POET CEO Jeff Broin and questions from media during a telephone press conference today: POET-DSM press conference

advanced biofuels, Audio, Cellulosic, Ethanol, Ethanol News, POET