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Biodiesel Industry Pleased with New RFS Targets

Cindy Zimmerman

The National Biodiesel Board is pleased with the increase in biomass-based diesel requirements for 2012 under the Renewable Fuel Standard (RFS2) finalized today by the Environmental Protection Agency (EPA).

The 2012 rule raises the Biomass-based Diesel program to 1 billion gallons, up from 800 million gallons this year. According to the latest EPA figures, the biodiesel industry had produced some 908 million gallons through the end of November, exceeding the 2011 requirement with one month of production remaining.

“This industry has shown without a doubt that it can meet and exceed the goals of this program in a sustainable way, with a diverse mix of feedstocks,” said Anne Steckel, vice president of federal affairs at NBB, the trade association for the U.S. biodiesel industry. “Our industry has plants in nearly every state in the country that are hiring new employees and ramping up production, in part because of the demand that this policy creates. As the only EPA-designated advanced biofuel being produced on a commercial scale nationwide, we look forward to continued growth in 2012.”

Steckel also urged the administration to issue a final rule for 2013 volumes raising the Biomass-based Diesel requirement to 1.28 billion gallons, as the EPA proposed earlier this year. The EPA on Tuesday postponed finalizing the 2013 volume, saying it needs more time for review.

Biodiesel makes up the vast majority of the Biomass-based Diesel program under the RFS. Because it also qualifies as an advanced biofuel under the program – with greenhouse gas emission reductions of 57 percent to 86 percent – biodiesel is also eligible to help meet general advanced biofuels requirements under the program.

Biodiesel, NBB

EPA Finalizes 2012 Renewable Fuel Standards

Cindy Zimmerman

After nearly a month delay, the Environmental Protection Agency (EPA) today released final Renewable Fuel Standard (RFS2) requirements for 2012.

The final 2012 overall volumes and standards are:

Biomass-based diesel (1.0 billion gallons; 0.91 percent)
Advanced biofuels (2.0 billion gallons; 1.21 percent)
Cellulosic biofuels (8.65 million gallons; 0.006 percent)
Total renewable fuels (15.2 billion gallons; 9.23 percent)

The percentage standards for four fuel categories are required by the Energy Independence and Security Act of 2007 (EISA).

advanced biofuels, Biodiesel, Cellulosic, Ethanol, Ethanol News, Government

Top Ethanol Stories of 2011

Cindy Zimmerman

RFAEthanol industry developments in 2011 have set the stage for a new era. The Renewable Fuels Association has identified five top stories for the ethanol world from 2011 that will change the future.

They are:

1. EPA approval of 15 percent ethanol for use in 2001 and newer vehicles
2. The end of the blenders tax credit and secondary tariff on ethanol imports
3. Surge in U.S. ethanol exports
4. New strides in advanced and cellulosic ethanol development
5. Emergence of the integrated biorefinery model

Ethanol Report PodcastIn this edition of “The Ethanol Report,” Renewable Fuels Association president and CEO Bob Dinneen comments on the year in review and some of the top ethanol stories of 2011.

Listen to or download the Ethanol Report here: Ethanol Report on 2011 in Review

advanced biofuels, Audio, Ethanol, Ethanol News, Ethanol Report, RFA

Biodiesel Consulting Group Expands

Cindy Zimmerman

leeBiodiesel consulting firm Lee Enterprises of Little Rock, Ark., has announced plans for expansion in 2012 into ethanol, biomass, wind, solar and geothermal, and the addition of consultants and strategic partners.

“We are currently the world’s largest biodiesel consulting group, and most of our consultants and strategic partners are already very involved in the other alternative fuels,” said principal owner Wayne Lee.

leeLee notes that the group’s current appraiser, environmental expert, QA experts, and grant writers have backgrounds and experience in these areas, and that the group’s larger strategic partners – Stoel Rives (legal), Christianson & Associates (accounting), IMA of Kansas (insurance), FCStone Merchant Services (feedstock financing), and Executive Leadership Solutions (staffing) – already have very significant presences in these other alternative fuels sectors. “Our goal over the past several years has been to put together a top notch team of the best biodiesel experts in the world”, says Lee. “I am quite satisfied that we have accomplished that goal and now address almost every need in the biodiesel sector.”

“I am a firm believer in biodiesel as the best alternative to diesel fuels and I strongly believe in its future” says Lee. “But, the overall solution to the world’s oil dependency rests with all the alternative fuels working together”. As a result, Lee wants his consulting group to be able to provide the same depth of assistance for all kinds of alternative fuels as they currently provide for biodiesel.

Biodiesel, biomass, Ethanol, Ethanol News, Geothermal, Solar, Wind

Post Office Goes Green for the Holidays

Cindy Zimmerman

uspsThe U.S. Postal Service may be in the red but they’ve been promoting going green this holiday season.

“The Postal Service is one of the greenest mailing and shipping companies in the world,” said Thomas G. Day, chief sustainability officer. The eco-friendly options offered by USPS include mailing and shipping supplies, free package pickup and holiday cards printed on recycled paper available in 2,000 Post Offices.

“We have a ‘fleet of feet’ delivering mail the greenest way possible, by walking,” Day added. “Nearly 9,000 of our carriers will be delivering holiday mail on foot this season. And we also have nearly 80,000 ‘park and loop’ routes, where carriers will drive vehicles from the Post Office to neighborhoods and then deliver those holiday packages and cards on foot.”

The Postal Service will have delivered a total of 16.5 billion cards, letters and packages between Thanksgiving and Christmas Eve using various alternative fuel vehicles in the largest civilian fleet in the world of 215,000 vehicles. Alternatives utilized by USPS include three-wheeled electric vehicles with zero gas emissions that operate at a cost of only 2 cents a mile, as well as vehicles that can operate on compressed natural gas, propane, ethanol, and fuel cell. There’s also 30 large all-electric trucks delivering holiday mail in Manhattan.

Electric Vehicles, Environment, Ethanol, Ethanol News, Natural Gas, Propane

USDA Report Shows No Cropland Growth for Ethanol

Cindy Zimmerman

The amount of land in the United States devoted to growing crops declined between 2002 and 2007, which indicates that increased ethanol production is not using up more land.

usdaAccording to the report, “Major Uses of Land in the United States 2007,” total cropland was down by 34 million acres in 2007 to its lowest level since 1945. Cropland accounted for 18 percent of the total land area in the country – the third largest land use behind forest (30%) and grassland (27%).

Renewable Fuels Association (RFA) president Bob Dinneen said the new report shows increased ethanol production has not resulted in expansion of total U.S. cropland or a decline in grassland and forest.

“Using real data from the real world, this report from USDA shows yet again that U.S. cropland is not expanding in response to increased ethanol demand,” said RFA President Bob Dinneen. “The report also shows that forest and grassland increased dramatically during a period when ethanol production more than tripled.”

The smallest total use of land in the U.S. is urban at 61 million or three percent. However, while urban land use accounts for the smallest percentage, the USDA report shows that it accounts for the biggest increase in land use, quadrupling between 1945 and 2007, increasing at about twice the rate of population growth over
this period. Urban land use increased almost 2 percent from 2002 to 2007.

“It is ironic that the land use debate has fixated on biofuels, when the actual culprit of land conversion has clearly been urban and suburban sprawl,” Dinneen said. “Subdivisions full of mini-mansions, big box stores, shopping malls, and parking lots are encroaching on productive farmland across the country.”

Read the USDA report here.

Ethanol, Ethanol News, Government, RFA, USDA

Ethanol Racing Fuel Firm Gets Paul Dana Award

Cindy Zimmerman

If not for the vision of Paul Dana that ethanol could fuel Indy Racing cars, Ignite Racing Fuel might never have existed.

brownfieldThe Indiana company this week received the 2011 Paul Dana Excellence in Bioenergy Leadership Award from the state department of agriculture. The award was established to honor the memory of Indy Racing League driver Paul Dana who was killed in a racing accident in 2006 after seeing the fulfillment of his dream that the IRL adopt ethanol as a racing fuel.

Indiana Agriculture Director Joe Kelsay (pictured far right), presented the award to Jay Berry and Reggie Henderson of Ignite Racing Fuel during a ceremony on Monday at the governor’s residence. In an interview with Brownfield Network’s Meghan Grebner, Berry said the award provides another way to help spread the word about how ethanol performs on the track. “A few years ago we went into several racing conventions and no one would talk to us – ethanol was kind of the red-headed step child for fuels.” But, Berry says they’ve been able to get ethanol in enough people’s hands that they can see its performance. For that, he says they are thankful.

brownfieldPaul Dana’s brother Greg, pictured here with Berry, was also on hand for the award presentation. He says the award means a great deal to the Dana family. “We’re honored that folks remember Paul and remember the work that he did, both on the race trace and off,” said Dana. “What Ignite has done is bring to fruition what Paul was working on 6-7 years ago to bring ethanol to all the grassroots racing in the country.”

Dana says increased use of ethanol is very important for not only the industry, but for farmers, the state of Indiana and the entire country.

Thanks to Brownfield Network for the photos and interviews. To listen to all of Meghan’s interviews with Greg Dana and Jay Berry, here is the link to the Brownfield Network story.

Ethanol, Ethanol News, Indy Racing

South Dakota has $950,000 for Blender Pumps

South Dakota Governor Dennis Daugaard says $950,000 in grants will be made available through the Governor’s Office of Economic Development to help pay for the installation of blender pumps and associated infrastructure at retail gas stations across the state.

Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota. During the 2011 legislative session, South Dakota Ethanol Producers agreed to a reduction in ethanol producer payments while temporarily allocating a portion of their remaining ethanol producer payments to the blender-pump grant program and a portion to the Revolving Economic Development Initiative fund. South Dakota produces about one billion gallons of ethanol a year, and blender pumps allow motorists to select their desired blends of gasoline and ethanol.

“By making more ethanol blends available, we are improving producer opportunities, creating jobs, and stabilizing our domestic fuel supplies,” says Gov. Daugaard.

South Dakota was the first state in the nation to allow ethanol blender pumps. More than 100 pumps currently help support South Dakota’s 15 ethanol plants and nearly 900 South Dakotans directly employed by the industry.

Grant awards up to $25,000 are available for installation of a station’s first blender pump. Grant awards up to $10,000 are available for installation of each additional pump. The majority of the grants will be awarded on a first-come, first-served basis; the final 20 percent will be awarded competitively. Informational meetings about the blender pump grant program will be held in January. Meeting times and locations will be announced at a later date.

The American Coalition for Ethanol (ACE) praised South Dakota for creating the grant program for the installation of ethanol blender pumps.

ACE Director of Market Development, Rick Serie, says, “South Dakota has continually looked at ways to get more ethanol to consumers and this program will go a long way toward supporting ethanol plants, hundreds of South Dakotans employed by those plants, and the thousands of farmers and local owners that benefit from the economic activity created by ethanol production.”

blends, Ethanol

RFA Seeks Answers in 2012 RFS Delay

Today, the Renewable Fuels Association (RFA) wrote to Environmental Protection Agency (EPA) Administrator Lisa Jackson seeking an explanation for the delay in releasing the 2012 Renewable Fuel Standard (RFS) requirements. According to statute, volume requirements for the coming compliance year were due by November 30th.RFA

The entire letter from RFA President and CEO Bob Dinneen to Administrator Jackson is as follows:

December 20, 2011

Dear Administrator Jackson:

With fewer than two weeks remaining before a new compliance year is set to begin under the Renewable Fuel Standard (RFS), it is concerning that EPA has thus far failed to announce the volume requirements for 2012 as dictated by the law. Equally concerning is the failure to provide renewable fuel providers and obligated parties under the RFS any explanation for the delay beyond the November 30th deadline set forth by the statute.

The RFS provides critical market certainty for existing ethanol producers, emerging renewable fuel technologies, and motor fuel suppliers that must comply with the RFS. Additionally, the RFS is an important tool in reducing the nation’s dependence on imported oil and creating domestic jobs and economic opportunities that cannot be outsourced. This market certainty is put in jeopardy as long as questions remain about impending RFS requirements and when those requirements will be made final.

With the holidays fast approaching and a new compliance year upon us, we are asking that EPA release its final volume RFS requirements for 2012 as soon as possible. At the very least, EPA should immediately explain the reasoning for the delay, provide guidance to renewable fuel producers and obligated parties, and disclose when release of the final rule might be expected. Quite frankly, this nearly three-week delay in the publication of 2012 RFS requirements is both inexplicable and unacceptable.

The members of the RFA and the entire American motor fuels industry eagerly await your reply.

Sincerely,
Bob Dinneen
President and CEO

Ethanol, RFA