Iowa Closer to Biodiesel Mandate

John Davis

A 5 percent biodiesel mandate in Iowa is a bit closer to a reality.

This story from the Des Moines Register says the bill that would require all biodiesel sold in the Iowa contain at least 5 percent biodiesel passed a state legislative subcommittee … but not without some fiesty debate:

“The hog producers in this state are being ravaged right now, but we’re not in here mandating eating bacon,” [Republican Erik Helland of Grimes] said.

Helland said later that “I have nothing against biodiesel, but I just don’t like mandates.”

[Rep. Sharon Steckman (Dem., Mason City), chair of the committee,] said “we’re sending our young people over to the Middle East to get killed for oil when we could be making some of our own right here.”

Biodiesel has lagged behind ethanol in usage because unlike ethanol, it has never had a federal mandate. Truckers and gasoline retailers also have opposed the mandate.

The B5 bill passed the Iowa State Senate last year but didn’t advance in the House. Let’s hope for the best this year.

Biodiesel, Government, Legislation

Minnesota Uses More E85 in 2009

A group that tracks fuel use in the state of Minnesota is reporting that state vehicles used 25% more E85 in 2009 than in 2008. According to the American Lung Association of Minnesota (ALAMN), the SmartFleet Committee estimates the 2,500 flexible fuel vehicles used 816,568 gallons of E85 in 2009, up from 650,036 gallons used in 2008.

In September 2004, Governor Tim Pawlenty signed Executive Order 04-10 which states that state vehicles use less petroluem based fuels and look for alternatives. Under this order, the SmartFleet Committee was formed, consisting of representatives designated by the commissioners of the Pollution Control Agency, Department of Agriculture and Department of Commerce among others to ensure effective and efficient state participation under this order.

According to SmartFleet’s recent report, E85 accounted for 15 percent of the total fuel used in 2009 by the state’s light duty vehicles. The state’s Higher Education office topped all other agencies with nearly 79 percent use of cleaner-burning E85. Other top agency users of E85 included Agriculture, the Governor’s Office, Mediation Services and Revenue.

“I am pleased to see steady progress again this year,” said Kelly Marczak, director for the American Lung Association in Minnesota’s clean fuel and vehicle technologies program and a member of the SmartFleet Committee. “The state’s use of E85 in 2009 prevented more than 3,250 tons of lifecycle carbon dioxide emissions and harmful pollutants from entering our air.”

Minnesota hosts more than 350 E85 fueling stations– more than any other state.

E85, Ethanol, Ethanol News, News

EPA Deems Sugarcane Ethanol an Advanced Biofuel

Joanna Schroeder

Yesterday, the Environmental Protection Agency confirmed in its expanded rules of implementation for the Renewable Fuel Standard (RFS), that ethanol made from sugarcane is considered an advanced biofuel that lowers greenhouse gas emissions (GHGs) by more than 50 percent. Specifically, EPA’s calculations show that sugarcane ethanol from Brazil reduces GHG emissions compared to gasoline by 61%, using a 30-year payback for indirect land use change (ILUC) emissions.

“The EPA’s decision underscores the many environmental benefits of sugarcane ethanol and reaffirms how this low carbon, advanced renewable fuel can help the world mitigate against climate change while diversifying America’s energy resources,” said Joel Velasco, Chief Representative in Washington for the Brazilian Sugarcane Industry Association (UNICA).

Brazil is the second largest ethanol producer in the world, behind the U.S., and the largest producer of ethanol made from sugarcane. Sugarcane ethanol, when compared to most types of ethanol produced today, yields less CO2 and can be less expensive for drives to purchase at the pump, this according to UNICA. The organization also says that “many observers point to sugarcane ethanol as a good option for diversifying U.S. energy supplies, increasing healthy competition among biofuel manufacturers and improving America’s energy security.”

A recent study in the November 2009 edition of the journal Energy Policy indicated that since 1975, over 600 million tons of CO2 emissions have been avoided thanks to the use of ethanol in Brazil.

“We are pleased that EPA took the time to improve the regulations, particularly by more accurately quantifying the full lifecycle greenhouse emission reductions of biofuels. EPA’s reaffirmation of sugarcane ethanol’s superior GHG reduction confirms that sustainably-produced biofuels can play a important role in climate mitigation. Perhaps this recognition will sway those who have sought to raise trade barriers against clean energy here in the U.S. and around the world. Sugarcane ethanol is a first generation biofuel with third generation performance,” said Velasco.

UNICA concluded by congratulating the administration for its “transparency and scientific integrity in the environmental rulemaking,” and encouraged other governments around the world to “take note of the manner that EPA has handled this process.”

biofuels, Ethanol, Legislation, News

DF Cast: Ethanol, Biodiesel Industries Welcome RFS-2

John Davis

It’s been a long time in the making, but the Environmental Protection Agency has finally released the new Renewable Fuels Standard … better known as RFS-2.

The standard requires that biofuels will have to reduce greenhouse gas emissions compared to the gasoline and diesel fuels they displace and grow in production from last year’s 11.1 billion gallons to 36 billion by 2022, with 21 billion gallons to come from advanced biofuels. It’s expected to replace more than 328 million barrels of non-renewable petroleum a year and reduce greenhouse gas emissions more than 138 million metric tons annually when fully implemented.

While admitting it might not be perfect, RFS-2 is being welcomed by representatives of the ethanol and biodiesel industries.

In this edition of the Domestic Fuel Cast, we’ll here from EPA Administrator Lisa Jackson, Secretary of Agriculture Tom Vilsack, as well as Tom Buis with Growth Energy, the Renewable Fuels Association‘s Matt Hartwig, and the National Biodiesel Board‘s Michael Frohlich.

They all have interesting takes on what the new standard will bring in the short and long terms, and you can here what they have to say here: [audio:http://www.zimmcomm.biz/domesticfuel/DFCast-2-04-10.mp3]

Audio, Biodiesel, Cellulosic, corn, Domestic Fuel Cast, Ethanol, Ethanol News, Government, Growth Energy, Indirect Land Use, NBB, News, RFA

Colorado Corn Growers Applaud EPA Decision

Along with other industry groups, the Colorado Corn Growers Association is pleased with the U.S. Environmental Protection Agency’s (EPA’s) action to expand the federal Renewable Fuel Standard. In a press release, Colorado Corn noted that it further validates the value of corn-based ethanol as an environmentally sound renewable fuel.

“The EPA recognizes corn-based ethanol is clearly superior to regular gasoline when it comes to greenhouse gas emissions,” said Mark Sponsler, CEO of Colorado Corn. Ethanol blended into gasoline has proven to be a viable and sustainable renewable fuel.

According to EPA, the Renewable Fuels Standard for 2010 will be set at 12.95 billion gallons. The total standard will increase gradually to 36 billion gallons in 2022. Corn-based ethanol already meets the required minimum greenhouse gas reduction as required by EPA, which found ethanol can reduce greenhouse gases by more than 20 percent.

“Among the advantages the EPA identified of all renewable fuels are higher net farm income, lower dependence on foreign oil, and a reduction in greenhouse gases,” added Sponsler. “The expansion of the nation’s Renewable Fuel Standard will lead to additional development of the nation’s renewable fuels industry, which means more jobs for rural America and new markets for corn growers.”

corn, Ethanol, Ethanol News, News

Obama Announces Steps to Boost Biofuels

Joanna Schroeder

It’s a busy day for the federal government. Here is what has happened today. The EPA has released its expanded rules for the Renewable Fuel Standard, The U.S. Department of Agriculture has proposed a rule on the Biomass Crop Assistance Program (BCAP) that would provide financing to increase the conversion of biomass to bioenergy, and the President’s Biofuels Interagency Working Group released its first report – Growing America’s Fuel. The report was co-authored by co-chairs Secretaries Vilsack and Chu along with EPA Administrator Lisa Jackson and lays out the strategy to advance and bring to market sustainable biofuels.

“Advancing biomass and biofuel production holds the potential to create green jobs, which is one of the many ways the Obama Administration is working to rebuild and revitalize rural America,” said Agriculture Secretary Tom Vilsack. “Facilities that produce renewable fuel from biomass have to be designed, built and operated. Additionally, BCAP will stimulate biomass production and that will benefit producers and provide the materials necessary to generate clean energy and reduce carbon pollution.”

Several industry organizations responded to the report today including the American Coalition for Ethanol (ACE) and Growth Energy.

“We welcome this new vision focused on biofuels production targets, and we encourage equal if not greater attention on distribution and creating long-term, sustainable demand for today’s corn ethanol and the next generation of biofuels,” said Brian Jennings, Executive Vice President of ACE.  “Approving the pending E15 waiver request, requiring the production of more Flexible Fuel Vehicles (FFVs), and providing incentives for the installation of blender pumps to dispense mid level ethanol blends all need to occur if we are to ensure that both corn ethanol and the next generation of biofuels can make good on their promise to reduce our dependence on foreign oil.”

Growth Energy CEO, Tom Buis agreed with Jenning’s statement and added, “Growth Energy commends President Obama for recognizing the value of grain ethanol and the need to move forward with cellulosic ethanol to help our nation meet the goal of producing 36 billion gallons of renewable fuels by 2022. The President understands the need for enhanced support for the existing ethanol industry and greater investment to create jobs, improve our environment and increase our national security.”

ACE, biofuels, Cellulosic, Ethanol, Growth Energy, News

Corn Ethanol Gets Boost Under Expanded RFS

Joanna Schroeder

The Environmental Protection Agency (EPA)  made an upwards revision today when releasing the expanded Renewable Fuels Standard. They gave corn-based ethanol a 21 percent advantage over conventional gasoline, more than what was originally slated. This new revision also qualifies all corn ethanol, including existing and new production, for the conventional biofuels targets in the RFS.

“While we’re pleased that the U.S. EPA recognizes corn ethanol’s distinct advantage over gasoline when it comes to greenhouse gas emissions and gratified that EPA modified ethanol’s carbon footprint calculation to more accurately reflect real-world data, we don’t believe the agency’s overall assessment of ethanol’s greenhouse gas reduction potential was good enough or accurate,” said Brian Jennings, Executive Vice President of ACE.  “By continuing to apply scientifically indefensible ‘international indirect land use’ penalties to corn ethanol, these regulations seriously underestimate ethanol’s greenhouse gas benefits over oil while completely ignoring the indirect emissions associated with petroleum – for example, the military protection of world oil supplies and oil transportation routes.”

One of the complaints of indirect land use change  (ILUC) theory is that it is not based on sound science or real data but simply derived using computer modeling. When ILUC theory is eliminated from the equation, corn-based ethanol’s GHG reductions are significantly higher – 61 percent according to ACE who comnissed the study, “Lifecycle Analysis of Greenhouse Gas Emissions Associated with Starch-Based Ethanol.”

Among the key findings of the report: “the scientific literature available to date shows a huge variation in estimates of carbon release from land clearing in general, on the order of 50 percent plus or minus – a huge margin of error that should not be relied upon to make policy.”

Jennings concluded, “America’s ethanol producers are committed to providing a clean, renewable fuel that supports the nation’s economy through job creation and reduces our dependence on foreign oil. The revisions in this proposed rule are a positive step by EPA, but corn-based ethanol must not be unfairly singled-out for penalty based on the indirect land use change theory.”

ACE, biofuels, Ethanol, Legislation, News

Ethanol Poised to Create Jobs in Expanded RFS

Joanna Schroeder

This afternoon, Growth Energy responded to the Environmental Protection Agency’s expanded Renewable Fuels Standard, that will create the platform for reaching 36 billions gallons of biofuels by 2022, and specifically praised the Obama administration and EPA Administrator Lisa Jackson.

“Growth Energy commends the Obama White House and EPA Administrator Lisa Jackson for recognizing the value of domestic ethanol both as a low-carbon fuel and as a U.S. jobs creator. The expanded Renewable Fuels Standard released today rightly puts an emphasis on America’s growth energy – ethanol – and that in turn will help our economic recovery, strengthen our national security and clean our skies,” Tom Buis, CEO of Growth Energy, said.

The Association noted several improvements to the rule including the decision to make volume levels of domestic ethanol retroactive to the first of the year. Technically, the blending levels for 2010 were to have been announced back in November but the EPA held off on determining those levels until they completed the new rules.

“Further, we’re pleased that EPA recognizes grain ethanol as a low-carbon fuel, and changed its indirect land use change penalty from its original proposal last year. However, while we appreciate that the EPA recognizes the uncertainty of ILUC, the fact remains that ILUC is still in the rule. This puts the cart before the horse, and our position is that ILUC should not be applied in regulation until we have a thorough, long-term study of the issue,” continued Buis.

Another area of concern lies in the fact that ILUC gives favoritism to Brazilian sugarcane ethanol, thus opening the door to a reliance on foreign energy once again.

Buis concluded, “Further, by using skewed ILUC calculations, the RFS gives Brazilian sugarcane ethanol preferred status as an advanced biofuel. I don’t think that was the intent of Congress when it passed the Energy Independence and Security Act. It won’t make the U.S. any more energy independent by switching our addiction from foreign oil to foreign ethanol.”

*Post update*
Listen to or download an interview with Tom Buis on Growth Energy reaction to the RFS2 rule here:

Audio, biofuels, Ethanol, Growth Energy, Legislation, News

Ethanol Report on RFS2 Rules

Cindy Zimmerman

Ethanol Report PodcastIndustry reaction to the Environmental Protection Agency announcement today of much-delayed rules for the second phase of the Renewable Fuel Standard has come quickly and is mostly positive.

In this edition of “The Ethanol Report” podcast, Matt Hartwig with the Renewable Fuels Association talks about their reaction and what the rule means for the industry.

You can subscribe to this twice monthly podcast by following this link.

Listen to or download the podcast here:

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

EPA Rules Confirm Ethanol’s Environmental Advantages

Joanna Schroeder

The ethanol and agriculture industry have a few things to celebrate today, one of which is EPA’s acknowledgment that ethanol, including corn-based ethanol, has greenhouse gas emission advantages over conventional gasoline. Today, the Environmental Protection Agency (EPA) announced its new released regulations for the implementation of the Renewable Fuel Standard (RFS2) which in part outlines the country’s move to 36 billion gallons of biofuels by 2022 while reducing GHG emissions in the fuel.

NCGA“We’re pleased the U.S. Environmental Protection Agency recognizes that corn ethanol provides a distinct advantage over conventional gasoline when it comes to greenhouse gas emissions, with a reduction of more than 21 percent in some cases,” said National Corn Growers Association (NCGA) President Darrin Ihnen. “This means that all corn ethanol including existing grandfathered capacity and new production will qualify to meet the conventional biofuels targets in the RFS.”

However, like others in the ethanol industry, NCGA is frustrated with EPA’s continued use of indirect land use theory, a piece of “flawed science” say industry supporters. Ihnen stressed that the EPA should reject the unproven theory of international indirect land use change, which assumes that growing more corn means planting corn on a proportionately greater amount of acreage and will impact other crops or natural resources on a global basis. Today’s yield trends show this to be false. 2009’s record corn yield was 165.2 bushels per acre, according to the U.S. Department of Agriculture, more than 11 bushels higher than 2008 and nearly 15 bushels higher than 2007.

One of the inherent problems with indirect land use is that it is only applied in the case of corn ethanol. “This is the perfect example of bad science being applied unfairly,” said Ihnen. “Removing the impacts from the international indirect land use theory means that corn ethanol actually provides a 52 percent reduction in greenhouse gas emissions, compared to gasoline. The EPA is not considering similar indirect impacts of petroleum-based fuels, so why are they so stringent when it comes to green, renewable corn ethanol?”

biofuels, Ethanol, Ethanol News, Legislation, NCGA