Engine Makers Challenge EPA Over E15 Ruling

Cindy Zimmerman

A newly formed group of engine manufacturers is challenging the Environmental Protection Agency’s (EPA) decision to grant a partial waiver approving the sale of gasoline containing 15 percent ethanol (E-15) for 2007 model year and newer passenger cars and light trucks.

The Engine Products Group, made up of several automobile, marine and small engine manufacturing organizations, filed a petition today specifically challenging whether EPA’s “partial waiver” approval for E-15 fuels violates the federal Clean Air Act provisions.

“The partial waiver for E-15 sets a bad precedent of how to introduce a new fuel. This partial waiver would allow fuel to come on the market with inadequate testing, inadequate misfueling controls and without a dedicated legacy fuel for use in those products for which E-15 was not approved,” said Kris Kiser, Executive Vice President of the Outdoor Power Equipment Institute.

Growth Energy, the ethanol organization which filed for a waiver in March 2009 to allow up to 15 percent ethanol in gasoline, disagrees with the engine manufacturers. “Concerns about misfueling are premature, as EPA is drafting a robust labeling rule and will conduct a vigorous public education campaign, and we are confident that the process will be successful,” said Growth Energy CEO Tom Buis.

The Renewable Fuels Association noted that EPA could avoid potential market confusion by simply allowing the use of E15 for all cars and light duty pickup trucks. “The only way to meet the nation’s energy, economic and environmental goals as put forth in the Renewable Fuels Standard is to increase ethanol consumption. Allowing for the use of E15 blends is a safe and appropriate step toward meeting these goals. The RFA will continue to press for the safe and effective use of higher level ethanol blends in both conventional as well as flexible fuel vehicles.”

Ethanol, Ethanol News, Growth Energy, RFA

BYO Ethanol Blending Solutions Webinar

Cindy Zimmerman

BYOPetroleum marketers and fuel station owners are invited to attend an ethanol blending solutions webinar for the new year.

The Blend Your Own Ethanol Campaign is kicking off 2011 by helping retailers learn how blender pumps can be the answer to dealing with all the variables surrounding ethanol in the year ahead, including new infrastructure programs, new regulations, and the opportunity of a large expansion of the flex-fuel vehicle fleet.

The webinar, sponsored by the Renewable Fuels Association (RFA) and the American Coalition for Ethanol (ACE), will be held on January 19, 2011 starting at 1:00 pm central time. More information about the webinar and how to register can be found at byoethanol.com.

ACE, blends, Ethanol, Ethanol News, Retailers, RFA

REG Starts Pumping Biodiesel at Chicago Terminal

John Davis

Biodiesel from Iowa-based Renewable Energy Group is now flowing at a major Chicago area fuel terminal.

The company has announced that REG-9000/1 biodiesel is now available for convenient splash blending or truck-load pick-up at Kinder Morgan’s Argo, Illinois facility:

This new terminal location combines the quality of REG-9000 biodiesel, the industry experience of REG and the convenience of the Chicago terminal site. Multiple biodiesel pricing options are available for REG customers through the Kinder Morgan terminal. on Friday, Dec. 17, 2010. Petroleum distributors may pick up REG-9000TM biodiesel 24/7 at the terminal located at 8500 West 68th Street Argo, Illinois after setting up a Kinder Morgan account.

REG says it is making several pricing options available for customers.

Biodiesel

Ethanol Stakeholders Attend Tax Bill Signing

Cindy Zimmerman

President Obama held a public signing ceremony for the tax bill passed by Congress this week that delivers early Christmas presents for everyone. Among those in attendance at the signing were some 150 members of Congress, administration officials and key stakeholder and advocates who worked to pass the bill, including representatives from the ethanol industry.

Both Renewable Fuels Association president and CEO Bob Dinneen and Growth Energy CEO Tom Buis were in the audience at the bill signing. “The Obama Administration today reaffirmed its commitment to America’s ethanol industry,” said Dinneen in a statement. “Extending these tax incentives prevents America from backtracking on the gains it has made in energy security and jettisoning the economic opportunity domestic ethanol production has brought to hundreds of rural communities all across the nation.”

At the ceremony, Buis presented the President with a letter thanking him for his support on behalf of the American ethanol industry. “We write today to express our deep appreciation and thanks for your leadership in delivering a common-sense ethanol tax policy. This legislation provides the certainty we require as our nation transitions to the debate over reforming our long-term national energy policy,” the letter reads. “Every year, our addiction to foreign oil drains $1,000 for every man, woman and child out of our economy. That is money we should invest in Des Moines, not Abu Dhabi – Columbus, and not Caracas.”

The biodiesel industry was not represented at the signing, but they were no less enthusiastic in their praise and gratitude for the bill which retroactively renews the biodiesel tax credit that expired at the end of 2009. “Reinstatement of this proven incentive helps provide the policy framework needed to meet the nation’s renewable goals, and the NBB sincerely appreciates the bipartisan cooperation and support that made extension of this worthwhile incentive possible,” said Joe Jobe, National Biodiesel Board CEO.

Biodiesel, Ethanol, Ethanol News, Government, Growth Energy, NBB, RFA

IPF Releases Economic Report of 31 Energy Projects

Joanna Schroeder

The Iowa Power Fund released a report today that details the economic impact of 31 projects from 2008 through September 2010. Each of the projects has received monetary funds from the program. One project that has received funding from the Iowa Power Fund is Project LIBERTY, POET’s project to develop cellulosic ethanol from corn cobs and light corn stover. The report estimates that Project Liberty could generate as much as $37.8 billion in economic activity over 20 years and could employ more than 2,800 people.

The report was conducted by Impact DataSource of Austin, Texas and estimates the short and long-term effects of these projects on the state of Iowa and on the nation. The scope of the report included the economic output, employment and workers’ earnings during the term of the project and possible economic impacts resulting directly from the project.

The analysis of Project LIBERTY in particular included three scenarios of low, medium and high long-term impacts from the project and replication of the technology at other Iowa ethanol plants.

“Project LIBERTY will not only employ people at the plant, it will add revenue to farmers’ incomes through biomass harvesting and add local jobs through increased economic activity,” Project LIBERTY Director Jim Sturdevant said. “When that technology is replicated at other plants in Iowa, those benefits will increase many times over.”

The Iowa Power Fund released the full report at a press conference in Des Moines, Iowa Thursday and you can click here to download a full copy of the report.

Cellulosic, Energy, Ethanol

Victory on the Hill

Joanna Schroeder

The solar energy industry has a reason to smile this morning as the Congress passed the tax bill with amazing speed late last night. Today, the Solar Energy Industries Association’s (SEIA) President and CEO Rhone Resch said of the passage of the one-year extension of the Treasury Section 1603 program, “After a year’s worth of effort, we are now close to getting the 1603 Treasury Grant Program extended. I’d particularly like to thank Representatives Holt, Blumenauer and Thompson for providing leadership and vision in support of the renewable energy industry and the 1603 program.” Resch is calling for swift action from President Obama in signing the bill.

SEIA has been a vocal advocate of the amount of jobs that the program has successfully created in all 50 states for blue collar workers who have been hit hard by the worst recession in 80 years. Fortunately the growth of industries like solar are putting them back to work in better paying green jobs. A major component of this bill is the extension of unemployment benefits for those millions who remain out of work.

While the solar and wind industries have been watching the progress of the incentives closely in D.C. neither industry has been saying much and are waiting until President Obama signs the bill which is expected soon. Once this happens, the bloggers of DomesticFuel will bring you the stories.

Solar, Wind

Protec Fuel Opens First E85 Station with Imaging

Protec Fuel announces the opening of an E85 pump at 5264 New Jesup Highway in Brunswick, Georgia. Offering the clean burning, alternative fuel, Mr. Pete’s is the first station to have Protec Fuel’s imaging on their dispenser.

E85 is a blend of 85 percent ethanol and 15 percent petroleum and can be used in over 8,000 FFVs across the area. The alternative fuel has been proven to reduce greenhouse gas emissions and reduce the nation’s dependency on foreign petroleum.

Mr. Pete’s used Protec Fuel’s turnkey program which included designing and managing the equipment conversion and fuel supply. “We are pleased to be assisting this station with their E85 infrastructure and supply of fuel,” said CEO of Protec Fuel, Todd Garner. “Mr. Pete’s is a prime location for Protec’s roll-out of new E85 dispenser imaging and we look forward to seeing additional sites with our specialized branding.”

The E85 site is also the first of its kind in the area. Located just north of Jacksonville and south of Savannah, the owner is excited to begin selling the product. “I’m looking forward to see how many green vehicles will use our new fuel,” noted owner of Mr. Pete’s, Al Coty. “I’m proud to carry the fuel – it’s keeping the money in this country and helping our economy.”

Mr. Pete’s and Protec Fuel have teamed up with the Clean Fuels Foundation through their National Flex Fuel Vehicle (FFV) Awareness Campaign to help market the station and gain additional exposure. “Support from the state government, a strong Clean Cities program, in-state 1st and 2nd generation ethanol production, and a strong existing refueling infrastructure placed Georgia on our key market list in this partnership,” said Burl Haigwood, Clean Fuels Foundation and Project Manager for the National FFV Awareness Campaign.

Mr. Pete’s is open seven days a week. The site offers a convenience store and pay at the pump option.

E85, Ethanol, Ethanol News, Facilities, Flex Fuel Vehicles, Miscellaneous, News

Industry Welcomes Back Fed Biodiesel Tax Incentive

John Davis

Passage of the federal tax bill and sending it to President Obama for his signature is being welcomed by many in the renewable energy field, especially the biodiesel industry.

The nation’s largest biodiesel producer, Iowa-based Renewable Energy Group, had quick praise for the approval, which retroactively renews the year-long expired $1-a-gallon federal biodiesel tax incentive:

“The reinstatement and retroactivity of the biodiesel blenders’ tax credit provides a more predictable and stable market for our company and our customers,” said Daniel J. Oh, President and Chief Operating Officer of Renewable Energy Group® (REG®), the nation’s largest biodiesel producer and marketer.

“With President Obama’s signature as the final step for this bill, the biodiesel blenders’ tax program restores competitive pricing for biodiesel in the distillate marketplace, puts green collar workers back to work and supports the future of this advanced biofuel industry in the coming months.”

Reinstatement and retroactivity means greater market certainty for REG’s customers, the petroleum industry and RFS2 obligated parties.

“We believe reinstatement for 2011 will allow petroleum distributors and obligated parties to make biodiesel purchasing decisions which will increase demand for REG-9000TM biodiesel, “ said Oh. “With the combination of blending requirements under RFS2 and the competitive pricing model offered by the tax credit, REG expects a significant increase in biodiesel demand for our five facilities in Iowa, Illinois and Texas.”

REG officials expect to double biodiesel sales in 2011 to meet the 800 million gallon biodiesel market that has been created under the new Renewable Fuels Standard (RFS2). And that could mean the company could increase its number of workers by 30 percent in the coming year.

National Biodiesel Board officials also praised the passage, reminding folks that this is truly an economic stimulus package for the biodiesel industry:

“Reinstatement of the biodiesel tax credit is welcome news for the U.S. biodiesel industry and good news for the nation as a whole,” said Manning Feraci, NBB Vice President of Federal Affairs. “This will undoubtedly help kick-start the domestic biodiesel industry, lessen our dependence on foreign oil, and create thousands of new jobs across the country.”

Biodiesel, Government, Legislation

Ethanol Industry Recieves Incentives for the Holidays

Joanna Schroeder

The only action remaining before the ethanol industry has the best holiday present of the season is President Obama’s signature. In what could literally be defined as the 25th hour, Congress passed the tax bill on Thursday that included a one-year tax extension for several key ethanol tax incentives. In the most heated subsidy debate in history, ethanol was the victor on the hill.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen said of the victory, “House members have struck a blow to the oil status quo and extended important tax policies that will allow America’s ethanol industry to grow and evolve. Domestic ethanol production helps create jobs and economic opportunity in often overlooked rural communities. Domestic ethanol production reduces America’s tab to petro-dictators across the globe. There is no alternative to gasoline available today that can match ethanol’s energy security and economic benefits.”

The American Coalition for Ethanol (ACE) was one of several organizations that worked to ensure that the ethanol incentives remained in place. ACE’s Executive Vice President, Brian Jennings, said of the tax bill, “When it became apparent a long-term extension of VEETC was unlikely in Congress, ACE began actively working with the White House, Congress, and other groups to unite behind a plan to reform the ethanol tax incentives. This one-year extension will provide the ethanol industry the opportunity we asked for to continue identifying the best long-term roadmap for the tax credit and overall ethanol policy reforms.”

Growth Energy CEO Tom Buis added, “This vote today will provide certainty in the market and give us a chance to work with Congress and the Administration to enact longer term tax policy reforms that will level the playing field in the fuels market. The infrastructure build out proposed in our Fueling Freedom proposal will help open the market to reduce our dependence on foreign oil, improve our environment, create U.S. jobs that can’t be outsourced and strengthen our national security.”

ACE, Ethanol, Ethanol News, Growth Energy, RFA

House Passes Tax Bill with Biofuel Incentives

Cindy Zimmerman

Congress burning the midnight oil passed the tax cut legislation that will help the United States burn less foreign oil.

The final vote was 277-148 on the Middle Class Tax Relief Act of 2010 (H.R. 4853) that now goes to the president’s desk to be signed into law. Despite opposition from some Democrats the bill passed without any changes. In addition to extension of unemployment benefits and Bush-era tax cuts, the bill extends the blenders tax credit for ethanol and retroactively extends the biodiesel tax credit that expired at the end of 2009.

Specifically, the bill extends the Volumetric Ethanol Excise Tax Credit (VEETC) through 2011 at the current rate of 45 cents per gallon, as well as the associated tariff on imported ethanol at the existing 54 cent level. The bill also extends through 2011 the 10 cent per gallon producer tax credit for small ethanol producers producing no more 60 million gallon of ethanol a year. The tax credit is applicable to just the first 15 million gallons of production for eligible producers.

In addition, the measure extends through 2011 the $0.50 per gallon alternative fuel credit and the alternative fuel mixture tax credits and the 30 percent investment tax credit for alternative vehicle refueling property for one year.

Biodiesel, Ethanol, Ethanol News, Government