Proposed Pennsylvania Tax Threatens Biodiesel

John Davis

A bill pending before the Pennsylvania State Legislature could hurt the biodiesel industry in that state.

Biodiesel Magazine reports an amendment to SB 901 would slap some new fuel taxes on places that sell biodiesel and could affect selling and blending biodiesel in surrounding states:

The amended legislation establishes a total of four of these registration fees:

– $5,000 for each biodiesel manufacturing facility within the state
– $5,000 for each location within the state where biodiesel is blended
– $100 for a person, other than a person that operates at a biodiesel production or blending facility, that sells, offers sale or otherwise transfers biodiesel or a biodiesel blend within the state, whether or not the that person operates a location within Pennsylvania where such activities are conducted
– $100 for each location, in excess of one, within Pennsylvania where a registered person sells, offers for sale or otherwise transfers title of biodiesel or a biodiesel blend

“This tax, which is imposed on distributors and retailers who are required by the state to sell this kind of fuel, adds more costs to handling the fuel,” [John Kulik, executive vice president of the Pennsylvania Petroleum Marketers and Convenience Store Association] said. “While some might argue that $100 does not seem like much, for businesses that have multiple locations, the tax can accumulate to thousands or tens of thousands of dollars. It’s a tax that they and their customers will be forced to pay.”

Ironically, the money raised is to be used to support Pennsylvania’s enforcement of the state’s biodiesel mandate, which started with a B2 blend last May and could be stepped up eventually to B20.

Biodiesel, Government, Legislation

Book Review – In Deep Water

Joanna Schroeder

Five months after the Deep Horizon oil spill, the first book detailing the BP Oil Disaster has been released by Natural Resources Defense Council (NRDC) Executive Director, Peter Lehner.  “In Deep Water,” chronicles the events leading up to the disaster, the mistakes made during the catastrophe and offers solutions for moving forward in a manner that will limit future offshore oil spills.

On April 20, 2010, BP’s Macondo well blew in the Gulf of Mexico killing 11 workers. By the time the well was capped, 87 days later, the well spewed hundreds of millions of gallons of toxic oil into the Gulf making this the worst oil spill the globe has ever known. Lehner writes, “The Macondo blowout is another national wake-up call, a sobering plea for action on the greatest environmental challenge of our time: finding a way out of the economic and social model we’ve built around fossil fuels, and forging a future built instead around the clean energy technologies of tomorrow.”

The quest for oil has encouraged oil companies to drill deeper and deeper into the ocean. According to the latest government and industry estimates, nearly 40 billion barrels of oil lie in American waters in the Gulf, much of it buried miles and miles deep in the Earth.  At $75 a barrel, the oil is worth $3 trillion.Read More

book reviews, Oil

Critics of E15 Waiver Approval Cry Foul

Joanna Schroeder

While the ethanol industry is busy applauding the EPA for its ‘step in the right direction’ in approving E15 for use in 2007 or newer cars or light duty trucks, other groups are crying out in dismay and criticizing the EPA for its decision. One group that is outraged by EPA’s move is the National Petrochemical & Refiners Association (NRPA) and Executive Vice President Gregory M. Scott wasted no time in announcing his organization’s displeasure.

“The Environmental Protection Agency today abdicated its responsibility to safeguard our nation’s public health and environment and became the Ethanol Promotion Agency. EPA’s unwise and premature decision to allow the sale of gasoline with higher levels of ethanol may be good politics in Corn Belt states on the eve of the midterm elections, but it is bad news for every American who owns a car, truck, motorcycle, boat, snowmobile, lawnmower, chainsaw or anything else powered by gasoline,” said Scott.

What Scott failed to mention in his tirade is that the EPA did not approve E15 for other model years or other types of vehicles including small engines, marine equipment and motorcycles.

“The ethanol industry has won a victory today by convincing the federal agency charged with protecting our nation’s public health and environment to disregard public safety and environmental issues and instead base a major policy decision on inadequate engine test data that has not been made public or reviewed independently. The American people are the losers today because EPA has violated President Obama’s 2009 commitment to them to put science ahead of politics.

EPA Administrator Lisa Jackson communicated, through EPA Assistant Administrator for Air and Radiation Gina McCarthy, that the decision was made after review of the Department of Energy’s extensive testing and other available data on E15’s impact on engine durability as well as emissions as the Clean Air Act requires them to do. The result, said EPA, is that E15 is find for use in conventional vehicles or light duty trucks manufactured in 2007 or later.

A coalition of farm and food industry trade associations that are members of the same choir group as NRPA wasted no time in creating a false panic among American consumers that there will be a competition between food and fuel, an argument that has been squished by dozens of global research organizations, and even went so far as to question whether the EPA had legal authority to make the decision.

“E15 – which would be a 50 percent increase from the currently permitted level of 10 percent ethanol in gasoline – will result in dramatic increases in the portion of the U.S. corn crop used to make fuel rather than food and, when fully implemented, could result in more than 40 percent of the nation’s corn crop being diverted to ethanol production. The corn ethanol industry has received over $30 billion in federal subsidies over the last three decades,” said the coalition in a prepared statement.

The coalition continued by stating that, “The EPA’s decision will have an impact on American farmers, food manufacturers and, most importantly, American consumers, who will face price increases at the grocery store and when they go out to eat in a restaurant. EPA took this step without sufficient regard for the inevitable effect on the price of food and feed.”

blends, Ethanol, Ethanol News

EPA Must Move Quickly to Approve E15 in Older Cars

Joanna Schroeder

The ethanol industry all agrees that today’s decision by the EPA to grant an E15 Waiver for 2007 or newer model cars and light duty trucks is a step in the right direction. However, most groups feel that the decision didn’t go far enough in moving the US to its renewable fuels goals of 36 billion gallons for biofuels by 2022.

Shortly following the EPA press conference, Agricultural Secretary Tom Vilsack released a statement commending the EPA for its decision. “Today’s announcement from EPA is an important step toward making America more energy independent and creating much-needed jobs in rural America. The announcement will help get existing ethanol capacity into the market.”

Vilsack continued, “Today’s action by Administrator Jackson and the EPA provides assurance to farmers, ranchers and the renewable fuels industry that the government backs the use of home grown energy in our cars and trucks. At the same time, more work is needed and we hope EPA and the Department of Energy complete an evaluation of 2001-2006 models soon.”

However, not all groups agreed with Vilsack’s enthusiasm. POET CEO Jeff Broin, whose company spearheaded the E15 Waiver, reacted by saying, “Approval of E15 in 2007 and newer vehicles is a positive first step toward opening the market for more ethanol to compete with gasoline. However, the EPA must move quickly to take the next step: approval of E15 for use in older vehicles.”

Broin continued, “The arguments being made right now against E15 are the same as those made about E10 back in the late 1980s, when I entered the ethanol industry. Seventy billion gallons later, we have proven those arguments false, just as research on E15 is proving critics wrong today. Greater market access will help give investors the needed confidence to commit to bringing cellulosic ethanol to commercial scale. Many projects, POET’s Project LIBERTY among them, are ready for commercialization but hindered by unnecessary limits on ethanol content in fuel.”

Ethanol enzyme company Genencor, a Division of Danisco echoed others’ sentiments. “We applaud the action taken today by the EPA and hope that they will quickly move to approve E15 for all vehicles. The adoption of sound, tested policies for cleaner fuels is critical to reducing our dependence on foreign oil, supporting our agricultural sector and cutting greenhouse gas emissions,” said Glenn Nedwin, Executive Vice President of Genencor.

blends, Ethanol, Ethanol News, POET, USDA

ACE, NCGA, UNICA React to EPA’s E15 Decision

Joanna Schroeder

In an EPA press conference this morning, Assistant Administrator for Air and Radiation Gina McCarthy announced that an E15 Waiver, originally requested by POET and championed by Growth Energy along with other industry allies, was now approved for model year 2007 and newer vehicles and light duty trucks. E15 is not, however, approved for use by other types of vehicles nor small engines or marine equipment, said McCarthy, as they are still waiting for additional DOE test results. The EPA expects to receive the next phase of results on cars and light duty trucks for model years 2001-2006 this November.

“While the EPA has no authority to mandate the use of E15, there is no question that today’s decision has the potential to increase the use of renewable fuels in the future,” said McCarthy.

Ethanol groups were quick to react to the announcement and Brian Jennings, Executive Vice President of the American Coalition for Ethanol (ACE) said in a press statement, “While some will portray this partial E15 waiver as a major victory and others will suggest it is completely unworkable, the truth lies somewhere in between. ACE views it as a very small first step and we will work to try and make the best of it. While we are pleased EPA finally made a decision, restricting the use of E15 to 2007 model year and newer vehicles is inadequate and will not sufficiently move the demand needle for ethanol.”

The National Corn Growers Association also responded to the news with a statement. “We’re disappointed in the very limited scope of this approval, but pleased the EPA has finally taken action to partially approve the waiver request to allow higher blends of ethanol in some motor vehicles,” said NCGA President Bart Schott, a grower in Kulm, N.D. “We believe this bifurcation of the approval process, and the labels that are expected to be placed on higher-blend fuel pumps, can lead to general consumer confusion and therefore act counter to the original intent.”

UNICAThe Brazilian Sugarcane Industry Association (UNICA) has been watching the move to E15 very closely and North American Chief Representative Joel Velasco commented, “Many U.S. ethanol groups have argued recently that after 30 years of tax credits and trade protection they are ready to compete without subsidies provided the government grants them greater access to America’s fuel pumps. With the EPA’s decision to increase ethanol limits by 50% for newer vehicles, that day has arrived.”

With today’s decision, nearly 18 percent of the 239 million cars on the road now have the option to use E15. Should model years 2001-2006 be approved later this year, then the amount of vehicles eligible to use E15 will increase to 54 percent.

ACE, blends, Ethanol, Ethanol News, NCGA

Growth Energy Calls EPA Decision First Step

Cindy Zimmerman

Growth Energy today embraced as an “important first step” the Environmental Protection Agency (EPA) decision to raise the blend wall from E10 to E15 for 2007 and newer vehicles, in response to Growth Energy’s Green Jobs petition. However, the coalition of U.S. ethanol supporters said much more must be done to reduce America’s dependence on foreign oil, create jobs here in the United States and improve our environment.

“Today’s approval of E15 for newer vehicles is the first crack in the blend wall in more than 30 years, and proves what was laid out in Growth Energy’s Green Jobs Waiver – that E15 is a good fuel for American motorists. And while this is an important first step, there are many more steps we can take toward strengthening our national security by reducing our dependence on foreign oil, creating jobs here in the United States and improving our environment,” Tom Buis, CEO of Growth Energy, said.

Growth Energy held a telephone press conference with comments from Buis, POET president Jeff Broin; Co-chairman Gen. Wesley K. Clark, Co-Chair of Growth Energy; ethanol producers Todd Becker of Green Plains Renewable Energy; and former Congressman Jim Nussle.

Listen to those comments here: Growth Energy Comments on E15 Decision

Audio, Ethanol, Growth Energy

RFA Reacts to EPA Decision on Higher Ethanol Blends

Cindy Zimmerman

Renewable Fuels Association president and CEO Bob Dinneen says the Environmental Protection Agency is missing an opportunity to reduce America’s dependence on foreign oil and create new economic opportunity by limiting its decision on E15 (15% ethanol/85% gasoline) to only model year (MY) 2007 and newer vehicles.

Renewable Fuels Association Logo“EPA’s scientifically unjustified bifurcation of the U.S. car market will do little to move the needle and expand ethanol use today,” said RFA President and CEO Bob Dinneen. “Limiting E15 use to 2007 and newer vehicles only creates confusion for retailers and consumers alike. America’s ethanol producers are hitting an artificial blend wall today. The goals of Congress to reduce our addiction to oil captured in the Renewable Fuels Standard cannot be met with this decision.”

Dinneen is especially concerned about the labels required at the pump that are likely to lead to confusion among consumers and issues with retailers.

Listen to an interview with Dinneen on the decision here. RFA Reacts to EPA Ruling on E15

Audio, Ethanol, Ethanol News, Ethanol Report, RFA

EPA Announces Decision on Higher Ethanol Blends

Cindy Zimmerman

The U.S. Environmental Protection Agency has granted a partial waiver to allow up to 15 percent ethanol in gasoline for 2007 model year vehicles or newer.

A decision on the use of E15 in model year 2001 to 2006 vehicles will be made after EPA receives the results of additional DOE testing, which is expected to be completed in November. However, no waiver is being granted this year for E15 use in model year 2000 and older cars and light trucks – or in any motorcycles, heavy-duty vehicles, or non-road engines – because currently there is not testing data to support such a waiver. Since 1979, up to 10 percent ethanol or E10 has been used for all conventional cars and light trucks, and non-road vehicles.

EPA Assistant Administrator for Air and Radiation Gina McCarthy announced the agency’s decision in a telephone conference call with reporters. That press conference is on-going and will be posted when complete.

Read EPA release on the decision here.

*POST UPDATE – EPA PRESS CONFERENCE AUDIO*
EPA Ruling on E15

Audio, Ethanol, Ethanol News, Government

SunE Sky Norfolk Chooses Sharp Solar Panels

Joanna Schroeder

A new solar power plant under construction in Ontario, Canada has selected Sharp thin film solar panels for its 18.5 MW plant currently under construction on two sites in Port Dover and Simcoe. The plant is a joint venture between SunEdison, a subsidiary of MEMC Electronic Materials, and SkyPower Limited and when completed will have two operational solar parks, SunE Sky Norfolk I and II.

SunEdison spokesperson Jason Grey noted that his company is thrilled to have worked with Sharp on the project and partner Kerry Adler, President and CEO of SkyPower Limited said of the project, “We welcomed the opportunity to deploy Sharp’s impressive technology in the SunE Sky Norfolk solar projects. As one of Canada’s leading owners and developers of solar parks, with over 1.4 GW in our solar pipeline we look forward to many more projects like these.”

Once the plant is operational, the power produced will be delivered by Ontario Power Authority to its customers. According to Sharp, the thin-film solar cells have a structure in which thin layers of silicon are deposited onto a glass substrate, enabling a dramatic reduction in the amount of silicon used. The production processes are simpler, thereby making these products ideal for large scale solar park projects.

“We’re proud to work with SunEdison and SkyPower to help bring more clean, renewable energy to the people of Canada through this landmark project,” said Eric Hafter, senior vice president, Sharp Solar Energy Solutions Group. “We applaud the Ontario Power Authority for translating government’s clean energy policy into tangible results for the people of Ontario.”

Electricity, Solar

Wind Power Will Play Key Role by 2030

Joanna Schroeder

The wind industry received a boost this week with the release of the “Global Wind Energy Outlook 2010,” in Beijing ahead of the China Wind Power 2010 conference slated to begin today. China is now the world’s largest wind power market and the Global Wind Energy Council (GWEC) anticipates the country’s wind power will increase 10 fold by 2020. The report forecasts that wind power could provide a fifth, or up to 22 percent of the world’s electricity needs by 2030 while at the same time achieving major greenhouse gas emissions reductions, and details how global wind power capacity could reach 2,300 GW by 2030 and reduce CO2 emissions by 34 billion tons.

The GWEO 2010 presents three different scenarios for global wind power development through 2030, Reference, Moderate and Advanced. The Reference Scenario is based on the new 2010 IEA report, “Projected Costs of Generating Electricity” and although its wind numbers are cautiously optimistic, it believes wind power will replace oil’s role in electricity generation by 2030.

The report also calls for a global agreement to be reached regarding greenhouse gas emission reduction goals and encouraged more governments to achieve their goals through the development of green energy.

“Wind power can make a massive contribution to global electricity production and to decarbonising the power sector, but we need political commitment to make this happen.” said Steve Sawyer, GWEC’s Secretary General. “Wind power technology provides governments with a viable option for truly tackling the challenges of our time and for being part of the energy revolution our planet needs.”

In addition to environmental benefits, the report also demonstrates that wind energy is becoming a substantial factor in economic development, providing more than 600,000 ‘green collar’ jobs today both in direct and indirect employment. By 2030, the number of jobs is projected to increase to over 3 million. In 2010 a new wind turbine was in stalled every 30 minutes and GWEC’s goal is that by 2030, a wind turbine is installed every seven minutes.

Today, more than 75 countries have at least one operational wind farm and by 2030, GWEC predicts that half of the new installed wind capacity will be in developing countries.

Electricity, International, Wind