RFA E-15 Ad

AFBF: Lame Ducks Could be Pretty Lame for Ethanol, Biodiesel

John Davis

The American Farm Bureau Federation isn’t expecting too much from the lame duck session of Congress, particularly when it comes to renewal of the federal biodiesel and ethanol tax credits.

“I think the lame duck session will be pretty lame,” said Mary Kay Thatcher, Director of Policy at AFBF, during an interview with our own Cindy Zimmerman during the recent National Association of Farm Broadcasters Trade Talk session in Kansas City, Mo.

While she says members of Congress will kick the budget to the next Congress coming in after the first of the year by passing a continuing resolution and will at least temporarily extend some of the Bush tax cuts before they expire on January 1st, she’s not as optimistic about the green fuels’ chances.

“I hope we add on ethanol and biodiesel as part of [those expiring credits], [but] I’m probably less optimistic that happens than I am the others because of the economy. But I think we can get those [biodiesel and ethanol] credits extended. It’ll be short term … six months, maybe a year … and then the new Congress will have to figure out where do you get the money to pay for that stuff.”

Thatcher says the biofuels tax credits will be a big topic of discussion when the AFBF holds its 92nd Annual Meeting, Jan. 9-12, 2011 in Atlanta, Georgia … just as the new Congress comes into session in Washington. She admits the ethanol tax credit could end up taking a hit from some of the new fiscal hawks elected this year. Thatcher does believe that farmers and biofuel producers will be helped by the fact that Republicans have taken control of Congress, and thus, taken control of the purse strings of the Environmental Protection Agency and other agencies that have put up roadblocks. And that could ease some of the restrictions the government has put on the two industries in the past few years.

Listen to more of Cindy’s interview with Mary Kay here: Mary Kay Thatcher, AFBF

Biodiesel, Ethanol, Ethanol News, Legislation, News

Eagles to Soar on Wind, Solar Power

John Davis

Right now, the Philadelphia Eagles are sitting atop their division in the NFL and have to have what’s considered one of the better feel-good stories in pro football with the comeback of Michael Vick (we can debate his merits and whether he was deserving of another chance in some other venue). But the Eagles might be putting up their biggest win of the season with their announcement that onsite wind and solar power generation will play a major role in powering Lincoln Financial Field, becoming the world’s first major sports stadium to convert to self-generated renewable energy:

The Eagles have contracted with Orlando FL-based SolarBlue, a renewable energy and energy conservation company, to install approximately 80 20-foot spiral-shaped wind turbines [shown on right] on the top rim of the stadium, affix 2,500 solar panels on the stadium’s façade, build a 7.6 megawatt onsite dual-fuel cogeneration plant and implement sophisticated monitoring and switching technology to operate the system.

Over the next year, SolarBlue will invest in excess of $30 million to build out the system, with a completion goal of September 2011. SolarBlue will maintain and operate the stadium’s power system for the next 20 years at a fixed percent annual price increase in electricity, saving the Eagles an estimated $60 million in energy costs.

The Eagles and SolarBlue estimate that over the 20-year horizon, the on-site energy sources at Lincoln Financial Field will provide 1.039 billion kilowatt hours of electricity — more than enough to supply the stadium’s power needs — enabling an estimated four megawatts of excess energy off-peak to be sold back to the local electric grid.

“The Philadelphia Eagles are proud to take this vital step towards energy independence from fossil fuels by powering Lincoln Financial Field with wind, solar and dual-fuel energy sources,” said team owner and chief executive officer, Jeffrey Lurie. “This commitment builds upon our comprehensive environmental sustainability program, which includes energy and water conservation, waste reduction, recycling, composting, toxic chemical avoidance and reforestation. It underscores our strong belief that environmentally sensitive policies are consistent with sound business practices.”

Team officials say the amount of renewable energy generated each year will be equal to what 26,000 homes go through in electricity annually and remove the same amount of carbon from the air equaling 41,000 cars.

Solar, Wind

USDA Loan Guarantee Funds Hawaiian Biodiesel Turbine

John Davis

The U.S. Department of Agriculture has guaranteed a $110 million loan for a Hawaiian utility cooperative that has biodiesel as part of its power generation efforts.

BusinessWeek reports the Kauai Island Utility Cooperative received the federal guarantee:

[T]he guarantee includes nearly $73 million for hydroelectric plant improvements and a 10-megawatt naphtha/biodiesel fueled combustion turbine.

[Hawaii’s Sen. Daniel] Inouye says the funds will help Kauai further harness the power of water and biofuel as part of the effort to lessen Kauai County’s dependence on imported fossil fuels.

[Sen. Daniel] Akaka says the homegrown energy sources keep dollars in Hawaii while reducing air, land and water pollution.

Biodiesel, USDA

Biomass Diesel Featured at Green Cars LA Auto Show

John Davis

A biomass-based synthetic diesel is being featured at the Green Cars LA Auto Show Ride & Drive event.

Rentech, Inc. says its synthetic RenDiesel(R) fuel is powering an Audi A3 TDI, coming on the heels of the recent four-day, 1,000 mile endurance drive that is part of the 2010 Green Car of the Year Tour:

During [last month’s] drive, the Audi A3 TDI averaged 43 mpg on RenDiesel fuel, which is greater than the EPA average highway fuel economy rating for that car. The RenDiesel fuel used on the drive was produced from natural gas and can also be made from biomass. The renewable RenDiesel fuel to be produced from biomass using Rentech-SilvaGas gasification technology at Rentech’s Rialto Renewable Energy Center is expected to reduce greenhouse gas emissions on a lifecycle basis by as much as 97% over conventional diesel fuel and by a comparable amount over electric vehicles. A vehicle using RenDiesel fuel is also expected to be as much as two times more fuel efficient than one running on ethanol. RenDiesel fuel contains approximately 60% more energy per gallon than ethanol and diesel engines typically achieve 20-40% more miles per gallon than gasoline engines. RenDiesel fuel also produces fewer volatile organic compound (VOC) emissions than ethanol or traditional diesel and has lower tailpipe emissions compared to traditional diesel.

Rentech’s Rialto Renewable Energy Center is expected to produce about 640 barrels per day of renewable synthetic fuels, primarily RenDiesel fuel, and approximately 35 MW of renewable electric power (RenPower) from urban green waste diverted from landfills.

biomass

Will The Lame Duck Session Create Mad Ducks?

Joanna Schroeder

DomesticFuel reporter Chuck Zimmerman recently had the opportunity to sit down with Growth Energy CEO Tom Buis and get an update on the state of the industry. This week, the lame duck session kicked off and this is a very important session for the biofuels industry as they are facing the expiration of several important tax provisions.

“We’re hoping the lame duck session becomes a productive session. Sometimes they are. Sometimes they aren’t,” said Buis. “Unfortunately, lame ducks create mad ducks and that sometimes prohibits them from working cooperatively together.”

Buis continued, “We’ve seen partisan gridlock in Washington for too long. We have some timely issues that are going to be a big deal to our industry and others that need to be addressed by the end of the year.”

Some of these issues include the potential end of the ethanol tax credit, VEETC, the small producer tax credit, and the ethanol tariff.

“Sometimes in lame ducks when you switch power from one party to the other the incoming party says we’d rather wait until January so we can control how these issues are dealt with,” said Buis. Well, that has consequences if they take that avenue and I’m hoping they don’t.”

Growth Energy would like to have an opportunity to take a bigger, broader look at where the industry is going and Buis feels that with the industry’s support, they are well on their way. But he cautions that for change to happen, you can’t allow the current programs to expire before the new programs are in place.

You can hear more about the state of the ethanol industry in Chuck’s full interview with Tom Buis. Ethanol State of the Industry

Audio, biofuels, Ethanol, Growth Energy

Scoop Up Some Holiday Cash

Joanna Schroeder

Scoop up some extra cash for the holiday season by filling out the DomesticFuel Survey. By participating in our fast, easy quick 5 minute survey, you could win $250 to spend on yourself or to help spread the joy to your friends and family.

Here’s all you need to do. Click on this link to complete the survey that will help the blogging team bring you more stories that are of interest to you. Once you’ve answered all the questions, enter to win $250 in cash. Each month, one winner will be chosen  from all of the survey’s entrants. Non winners will be put into the drawing for the next month so there is no need to fill out the survey multiple times.

Ready? Then click here to begin.

Miscellaneous

Ethanol Report on California LCFS

Cindy Zimmerman

Ethanol Report PodcastThe California Air Resources Board (CARB) has decided to use the latest research on indirect land use change (ILUC) for implementing the state’s Low Carbon Fuels Standard (LCFS), meaning the current ILUC penalty for corn ethanol likely will be cut by at least half by the spring of 2011. The Renewable Fuels Association (RFA) says the resolution is good news for the ethanol industry, but expressed concerns about waiting until after the standard is implemented in January to make the revisions.

RFA Vice President for Research Geoff Cooper talks about the decision and its impact in this edition of “The Ethanol Report.”

Listen to the Ethanol Report here: Ethanol Report on California LCFS

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

EPA Decision on E15 for Later Models Delayed

Cindy Zimmerman

The Environmental Protection Agency says it will now be the end of the year before testing of 15 percent ethanol blended fuel in vehicles older than 2007 model year is complete.

According to a very brief statement issued by the EPA, the Department of Energy has informed EPA that “lab testing of E15 in model year 2001-2006 vehicles will now be completed by the end of December. EPA will make its decision shortly after receiving that data.”

“We’ve been informed by EPA that the decision is being delayed because of the need to retest one particular car that hadn’t been properly maintained and serviced. That particular car failed on all fuels, including E0. The problem was with the testing process, not the fuel,” said Growth Energy CEO Tom Buis. “This also demonstrates just how committed EPA is to the integrity of the testing; they are doing this right. We are confident that ultimately all the tests will show what we’ve said all along, that E15 is a great fuel for American motorists.”

Renewable Fuels Association president Bob Dinneen says while the delay is disappointing, it is understandable. “We encourage EPA to extend such due diligence to testing for all cars and pickups, regardless of age. We believe the fuel testing to date clearly demonstrates the efficacy of E15 as a motor fuel for all light duty vehicles.”

More information on the delay is expected from EPA by the end of the day.

Ethanol, Ethanol News, Government, Growth Energy, RFA

Delay Expected on E15 for Later Model Vehicles

Cindy Zimmerman

Reuters is reporting today that the Environmental Protection Agency is likely to delay a decision on the use of E15 in cars and pickup trucks built from 2001 to 2006 by up to a month.

Using an unidentified source, Reuter’s reporter Tom Doggett said the agency wants to do more testing on the effects of 15 percent ethanol blended gas and may announce today that the decision will be delayed. Last month, EPA made the decision that E15 was safe for use in cars and pickup trucks built in 2007 and later and that a decision on later model vehicles was expected by December.

Ethanol, Ethanol News, Government

California to Update Land Use for Ethanol

Cindy Zimmerman

The California Air Resources Board yesterday agreed to update the land use change and other indirect effects of biofuels production under their Low Carbon Fuels Standard (LCFS).

CA ARBThe board is asking for updates to the land use values for corn ethanol, sugarcane ethanol, and soy biodiesel, and other feedstocks by spring of 2011 to implement the LCFS, which currently penalizes corn ethanol to the extent that it would not be approved for use in the state, while sugarcane ethanol meets the standard.

Joel Velasco with the Brazilian Sugarcane Industry Association (UNICA) says they are pleased that California is reviewing the science of indirect emissions from biofuels production. “As we stated in our comments during the LCFS rulemaking process, ‘the science used in determining these market-mediated, indirect impacts is quite limited and highly uncertain.’ The Board’s decision today to ‘update the land use change and other indirect effects values in the Spring of 2011’ for a variety of biofuel feedstocks, including sugarcane, ensures that as the science evolves, so will the regulations.”

The U.S. ethanol industry has challenged the constitutionality of California’s LCFS and expressed concerns that the state will not be able to serve the needs of motorists without corn ethanol. “We hope to bring some sanity to that debate,” said Renewable Fuels Association (RFA) president Bob Dinneen. “We hope that California makes some changes to the program or there’s a train wreck waiting to occur there because consumers won’t have enough fuel for their vehicles.”

The updates are likely to mean the current ILUC penalty for corn ethanol will be cut by at least half by the spring of 2011, using ILUC modeling from Purdue University. However, California’s LCFS is supposed to be implemented in January 2011, which could complicate and confuse the issue, according to Dinneen. “Why would CARB begin a program on Jan. 1 that is based on ILUC numbers that they now freely admit are wrong and inflated? They have better science and they should use it now—before the 2011 compliance year beings,” said Dinneen.

Growth Energy spokesperson Chris Thorne also commented on the action taken by CARB. “What the Expert Working Group and the CARB staff are showing us with these decisions is that there are grave doubts about the entire scheme of indirect land use change, which penalizes clean fuels in America for the pollution created by foreign producers,” Thorne said.

Ethanol, Ethanol News, Growth Energy, RFA, UNICA