NEC 2027

AEC Supports Domestic Energy Promotion Act

Joanna Schroeder

Iowa Senator Chuck Grassley along with a bipartisan group of senators, announced a proposed piece of legislation to promote the development of biofuel infrastructure. The Domestic Energy Promotion Act of 2011 would transition the current blender’s credit to a variable tax credit based on the price of oil, improve tax incentives for blender pumps and ethanol refueling infrastructure, and extend crucial tax incentives for advanced and cellulosic ethanol production that are set to expire at the end of the 2012.

In response to the proposed ethanol legislation, Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC) said, “We applaud Senator Grassley’s continued leadership on this issue. The proposal strikes the right balance between providing savings to the taxpayer, developing the infrastructure necessary to incorporate growing volumes of ethanol from all feedstocks, and extending the incentives that are critical to the development of next generation ethanol fuels.”

“The tax incentives for advanced and cellulosic ethanol contained in Senator Grassley’s proposal will help our industry put steel in the ground and create jobs and economic activity that cannot be exported,” continued Coleman. “They are the type of tax incentives already provided for the fossil fuels industry, and extending these incentives helps begin the process of leveling an uneven playing field with gasoline and other petroleum fuels. Most importantly, this proposal establishes a durable and consistent tax framework for our industry, which in turn will facilitate substantial investment in domestically-produced advanced ethanol fuels and allow our sector to reach its full potential.”

To learn more about the Domestic Energy Promotion Act of 2011 and how it may impact the ethanol industry, listen to this week’s Ethanol Report.

advanced biofuels, AEC, biofuels, blends, Cellulosic, E85, Ethanol, Legislation

Biomass Grants Awarded By USDA and DOE

Cindy Zimmerman

U.S. Agriculture Secretary Tom Vilsack and U.S. Energy Secretary Steven Chu today announced a total of $47 million to fund eight research and development projects that will support the production of biofuels, bioenergy and high-value biobased products from a variety of biomass sources.

“The projects that we are announcing today will spur innovation in bioenergy by developing renewable resources that produce energy more efficiently and do so in a sustainable way,” said Vilsack. “Advances made through this research will help boost rural economies by developing and testing new processing facilities and profitable, energy-rich crops that U.S. farmers and foresters will grow.”

The biomass research and development grants have been awarded for projects in Florida, Hawaii, Kansas, Kentucky, Massachusetts, Montana, New Jersey, and South Carolina with feedstocks ranging from algae to sweet sorghum, paper mill waste products and energy crops like switchgrass.

In addition, USDA announced today the establishment of the first Biomass Crop Assistance Program (BCAP) Project Area designating areas in Missouri and Kansas for the production of dedicated feedstocks for bioenergy.

Comprising 39 contiguous counties in Missouri and Kansas, the first BCAP Project Area proposes the enrollment of up to 50,000 acres for establishing a dedicated energy crop of native grasses and herbaceous plants (forbs) for energy purposes. Producers in the area will plant mixes of perennial native plants, such as switchgrass, for the manufacture of biomass pellet fuels and other biomass products to be used for power and heat generation. The proposed crops also will provide long term resource conserving vegetative cover. The project is a joint effort between the agriculture producers of Show Me Energy Cooperative of Centerview, Mo., and USDA to spur the expansion of domestically produced biomass feedstocks in rural America for renewable energy.

Vilsack and Chu held a press conference this afternoon announcing the biomass grants and addressing questions about the real potential for cellulosic ethanol, Congressional proposals regarding the ethanol blender’s tax, most promising fuels for the military, and more.

Listen to or download the press conference here: USDA DOE Biomass Grants

Audio, biomass, Ethanol, Ethanol News, Government, USDA

Oregon to Test Hydrogen Fuel Technology

Joanna Schroeder

This month, testing will begin in Oregon on a new hydrogen fuel technology that works in tandem with diesel and gasoline engines to improve fuel efficiency, torque and horsepower and lower emissions. The technology was designed by Global Automotive Hydrogen Systems in Hong Kong. The system was first tested in Australia in 2010 by Pacific Transport, a trucking company. The hydrogen technology was installed in three Kenworth truck towing trailers that were each 180 feet long and weighed more than 280,000 pounds. The system produced an average increase in fuel efficiency of 23.5 percent over a typical 11,800 mile haul. Six trips were made and took into consideration various factors including terrain, wind and temperature, all elements that can affect fuel economy.

“This system has been tested in the largest truck and trailers driving anywhere in the world, and time and time again it produces significant improvements in fuel efficiency,” said Larry Bright of Lakeside Distributing Network, Eugene, Ore., the North American distributor of the system. “Our testing in Oregon will confirm for the American audience what we already know about our system: it works and works very well.”

The hydrogen technology will be installed in two trucks owned by McCracken Motor Freight based in Portland, Oregon. On May 9th, one truck will undergo a complete dynamometer test at Pacific Power Products in Ridgefield, Washington. This test is designed to verify increases in torque and horsepower, as well as any lowered emission levels or other results. The second truck will begin a two-day 1,200 mile road test. Final results will be announced May 12-13, 2011, in Eugene.

The system generates hydrogen from just over a gallon of potable water and then uses power generated by the alternator to fuel the hydrogen-generation process. The hydrogen is then fed into the vehicle’s intake, providing a steady source of clean-burning fuel that supplements the diesel or gas already being used. An on board computer that comes with the system monitors the three critical elements to making the hydrogen: temperature, voltage and amperage.

Once testing is complete, Lakeside Distributing Network will only release limited amounts of information on the specifics of the system in order to protect the developer’s patent applications.

Bright concluded, “I expect people to be skeptical. But, I’ve seen the results with my own eyes. And soon the people of Oregon will see it, too.”

Hydrogen

Iowa Biodiesel Board Applauds Iowa Biodiesel Bill

Joanna Schroeder

As reported yesterday by Cindy, there was big news in Iowa for the biodiesel industry. The state passed one of the most comprehensive biodiesel fuel policies in the U.S. that creates a system that incentivizes local production, encourages availability of biodiesel at the pump, and invests in the infrastructure needed for wide distribution. The renewable energy bill is known as Senate File 531 and was passed by a vote of 48-1.

Daniel Oh, COO of the Renewable Energy Group (REG) based in Ames, Iowa said, “REG applauds the members of the Iowa House and Senate for their strong support of the Iowa biodiesel industry. Approval of this bill by the Governor would make biodiesel more available to Iowans and reduce our nation’s dependence on imported petroleum. Additional consumption of biodiesel by Iowans supports our state’s green-collar workers and agricultural producers.”

“REG is committed to being a reliable supplier of high quality biodiesel throughout the supply chain and we look forward to continuing to partner with retail diesel locations, farmer-owned cooperatives and petroleum refiners to make Iowa a biodiesel utilization leader,” added Oh.

According to the Iowa Biodiesel Board the bill will do the following:

  • • Extend the Iowa biodiesel retailer credit, at 2 cents per gallon for blends of 2 percent biodiesel (B2) and 4.5 cents per gallon for 5 percent biodiesel (B5) in 2012, followed by 4.5 cents per gallon of B5 through 2017.
  • • Make it easier for petroleum marketers to achieve the credit.
  • • Add a biodiesel production incentive of 3 cents per gallon in 2012, 2.5 cents per gallon in 2013, and 2 cents per gallon in 2014 (for first 25 million gallons per producer).
  • • Provide $3 million a year to the Renewable Fuels Infrastructure Board.
  • • Give the Iowa Biodiesel Board a seat on the Renewable Fuels Infrastructure Board.

Randy Olson, Executive Director of the Iowa Biodiesel Board said of the biodiesel bill, “This is legislation that truly makes Iowa biodiesel competitive in the national marketplace, and I commend our legislators for empowering our state’s industry.”

He urged Governor to sign the bill and noted that as a result of the federal Renewable Fuels Standard (RFS2) the biodiesel industry is positioned to sell 800 million gallons of biodiesel throughout the country. Of this, Iowa has the ability to produce 300 million gallons on its own and many believe that the states with the strongest policies will secure the largest share of the market.

“Putting biodiesel producers back to work is good for the state’s economy, and also will help make Iowa the renewable energy capital of the world in the face of rising oil prices,” Olson concluded.

Biodiesel, biofuels, Legislation

Ethanol Report on Domestic Energy Bill

Cindy Zimmerman

Ethanol Report PodcastA bill was introduced today in the Senate that would modify the current ethanol blender’s tax credit set to expire at the end of this year.

Renewable Fuels Association president and CEO Bob Dinneen says the bipartisan Domestic Energy Promotion Act of 2011 introduced by Sen. Chuck Grassley (R-IA) already has a number of co-sponsors. “Senators Conrad, Johanns, Klobuchar, Franken, Tim Johnson, Senator Harkin and Ben Nelson of Nebraska, so it is a bipartisan bill,” said Dinneen.

The bill modifies the current Volumetric Ethanol Excise Tax Credit (VEETC) by tying the tax incentive to the price of oil. “This proposal would continue to provide a demand driver for ethanol when oil prices are low, while not requiring the taxpayer to subsidize gasoline marketers when the marketplace is already providing an incentive to blend,” Dinneen said.

The bill includes two other provisions that would help increase ethanol infrastructure and investment in next generation technology. “The reform of the existing tax incentive to be a variable incentive, infrastructure tax incentives that will encourage marketers to invest in blender pumps, and cellulosic tax incentives to allow the industry to continue to evolve sets up a policy that we think is fiscally responsible and makes great sense for this nation’s energy and economic future.”

Listen to or download an interview with Dinneen about the bill here: Ethanol Report on Domestic Energy Promotion Act

Audio, Cellulosic, Ethanol, Ethanol News, Ethanol Report, Government, RFA

Senate Bill Would Modify Ethanol Tax Credit

Cindy Zimmerman

U.S. Senator Chuck Grassley today introduced bi-partisan legislation to reform the current Volumetric Ethanol Excise Tax Credit (VEETC) while still supporting the domestic ethanol industry.

Introducing the bill, Grassley said the Domestic Energy Promotion Act of 2011 would reduce the VEETC for a two year period before transitioning to a tax credit that would adjust based on the price of oil. “When crude oil is more than $90 a barrel, there will be no blenders’ credit. When crude oil is $50 and below, the blenders’ credit will be 30 cents,” Grassley said. “When oil prices are high, a natural incentive should exist in the market to drive ethanol use.”

The bill would also improve upon current tax credits for the installation of blender pumps and ethanol fueling infrastructure as well as extend tax credits for small ethanol producers, advanced and cellulosic ethanol.

The American Coalition for Ethanol (ACE), Growth Energy, the National Corn Growers Association (NCGA), and the Renewable Fuels Association (RFA) issued a joint statement praising the legislation:

“This legislation rightfully recognizes budget constraints by reforming the ethanol tax credit and significantly reducing its cost. Additionally, this bill would improve current tax credits for the installation of blender pumps offering higher level ethanol blends and provide Americans more choice when they fill up. Critically, this legislation would also ensure progress made to commercialize advanced ethanol technologies utilizing new feedstocks such as grasses and municipal solid waste is accelerated. We thank these senators for their leadership in introducing this bill and look forward to working with them through the legislative process that ultimately ends with the President’s signature.”

The bill contrasts sharply with legislation introduced yesterday by Sens. Tom Coburn (R-OK) and Dianne Feinstein (D-CA) that would eliminate the U.S. tax credit for ethanol and the tariff on ethanol imports, a move that, based on a new report, the industry contends would result in significantly higher gasoline prices.

ACE, corn, Ethanol, Ethanol News, Growth Energy, NCGA, RFA

Iowa Legislature Passes Renewable Fuels Legislation

Cindy Zimmerman

The Iowa Legislature today approved comprehensive renewable fuels legislation intended to increase E15 sales and biodiesel production.

Iowa RFAIowa Renewable Fuels Association Executive Director Monte Shaw says the bill includes a new 3 cent per gallon retailer tax credit for E15 sales, allowing Iowa to lead the way in E15 public policy. “With final E15 approval expected from the EPA this summer, Iowa retailers will have an incentive to begin offering E15 on day one. E15 will be an option for Iowa motorists only if Iowa retailers choose to offer the higher blend. The E15 tax credit is an important tool for retailers looking to add lower cost E15 to their product mix.”

The bill also created a short-term production incentive for Iowa biodiesel producers. “The biodiesel industry is really going through a shaking out process right now,” added Shaw. “The states surrounding Iowa have taken aggressive steps to protect their biodiesel producers. This new production incentive will help Iowa biodiesel producers compete with neighboring states. Ramping up Iowa biodiesel production will create thousands of direct and indirect jobs.”

The bill contains a number of other provisions, including misfueling liability protection for retailers; an enhanced E85 retailer tax credit; an extension of the biodiesel retailer tax credit for blends of B5 and higher; $3 million in annual funding for Iowa’s Renewable Fuel Infrastructure Program; modifications to Iowa’s 25% Iowa renewable fuels standard and ethanol tax credit and codifying the ASTM fuel specification for biodiesel blends between 6 and 20 percent.

Biodiesel, Ethanol, Ethanol News

Ethanol Leader Challenges EIA Reporting

Cindy Zimmerman

The Energy Information Administration predicts only very modest production of cellulosic ethanol by the year 2022, but the industry is more optimistic.

rfa bob dinneenRenewable Fuels Association president Bob Dinneen challenged some of the reporting and assumptions the EIA made in the latest energy outlook, which administrator Richard Newell presented at the 4th International Biomass Conference in St. Louis this week. EIA is predicting that in 2022, cellulosic ethanol will contribute only 3.5 billion gallons to the nation’s liquid fuel supply. “We see far greater potential for cellulosic ethanol much sooner than does EIA,” Dinneen said during an industry roundtable when asked to comment on the agency’s forecast.

Dinneen also notes that the way EIA reports data marginalizes the important role that grain ethanol is already playing in the marketplace. “At the end of all the number crunching that EIA does, you’re left with a pretty pessimistic view of what grain ethanol can do for our nation’s fuel supply and energy security,” Dinneen said, pointing out that EIA reports ethanol as being just four percent of the U.S. fuel market, instead of being nearly ten percent of the gasoline market.

EIA predicts ethanol blending in gasoline will increase from 13.1 billion gallons in 2010 (about 9 percent of the gasoline pool) to 17.8 billion gallons in 2020 (about 12 percent of the gasoline pool).

Listen to an interview with Bob at the Biomass Conference here: Bob Dinneen Interview

Audio, biomass, Cellulosic, Ethanol, Ethanol News, RFA

Davis Off to a New Adventure

John Davis

My Dear Friends,

For the past four-and-a-half years, I’ve had the distinct pleasure of blogging about this nation’s and world’s efforts to wean itself from non-renewable energy. It’s been an absolutely fantastic experience, taking me down the blogging highway, sometimes from the comfort of my own living room chair. But, sadly, I will not be able to continue writing for this blog.

I have been offered a once-in-a-lifetime opportunity to go to Afghanistan to help the Afghans start a radio journalism/production program, so they can get good information to the people of that country and not just what some mullah wants to tell them. Don’t worry about my safety; I’ll be warm and safe and dry in the cozy confines of Kandahar Air Base, protected by the finest collection of fighting men and women the world has ever seen. I only hope that my efforts will make their jobs a little easier and help Afghanistan recover from decades of war and strife.

In the meantime, I hope to check in from time to time and give you a glimpse of our efforts there.

I can’t tell you how much I have appreciated Chuck’s and Cindy’s efforts and opportunities they have afforded me. They are true friends. I also feel confident that between them and their pool of talented, sophisticated freelance journalists, they’ll continue to spread the good news of renewable energy.

I thank you for reading my posts and providing comments. Even when (and probably especially when) we disagreed, I think it made for some great conversation … the real key to solving this nation’s energy issues. Keep reading Domestic Fuel, and keep putting in that great feedback!

Until we see each other again, take care!

John

Company Announcement, Miscellaneous

Improving Seed Traits

Chuck Zimmerman

Improving nitrogen/nutrient utilization (45%) was the top choice in answer to the ZimmPoll question, “What should the next seed traits focus on?” That was followed by drought tolerance at 23%, improve food/fiber profiles 14%, improve current traits 9% and other 9%. If you selected “other” what would you suggest? So there you go researchers. Let’s get with it and bring on some new traits!

Our next ZimmPoll is now live and asks the question, “Do you believe in man made climate change?” I was going to use the term global warming but now we have found out that cooling is going on too so the current buzz term on this is climate change. Let us know what you think and thank you for participating.

And if you have any questions you want to suggest for future ZimmPolls please let us know.

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

ZimmPoll