ACE Confident EPA Will Approve E15 by Mid-2010

Joanna Schroeder

ACE_new_logoThe ethanol industry continues to let the EPA know its thoughts on the postponement of the decision regarding the E15 Waiver request, but like many other organization, is confident that the EPA will approve up to E15 blends by mid-2010.

Brian Jennings, the Executive Vice President of the American Coalition for Ethanol (ACE) and one of the ethanol groups to submit the original waiver request, commented today, “While we would have strongly preferred that EPA approved E15 today for all vehicles, we’re pleased that progress is being made toward this goal. We are confident that in the long run the data will demonstrate that E15 and higher ethanol blends such as E20 and E30 can effectively be used in all vehicles.”

While the EPA acknowledges that ethanol will need to be blended into gasoline at levels great than 10 percent (E10) to meet the goals of the Renewable Fuel Standard which states that the country needs to blend 36 billion gallons of alternative fuels by 2022, there is consternation among supporters of their unwillingness to acknowledge current vehicle research that supports the use of mid-level blends of ethanol. ACE has conducted research regarding the performance of mid-level ethanol blends in conventional vehicles for the past several years.

The organization believes that in preparation for the E15 waiver to be approved now is a good time for Congress to enact the Harkin-Lugar ‘Choice Act,’ S. 1627, “which promotes flexible fuel vehicles, blender pumps and ways for fuel retailers to economically add more options for their customers.”

Jennings concluded, “Ultimately we need to shift the power to decide what fuels motorists use away from government agencies and oil companies and to consumers.  We support maximum consumer choice for motorists to use E10, E15, E20, E30, E85, or ethanol-free gasoline, and we believe that when consumers are finally given these meaningful choices they will select the ethanol-blended fuels that work best in their vehicles. Senate Bill 1627 will be one of ACE’s top legislative priorities for 2010.”

Click here to read ACE’s full statement.

ACE, Ethanol, Government, News

RFA: EPA Needs to Avoid Paralysis by Analysis

Joanna Schroeder

The EPA received more than 80,000 comments regarding the E15 waiver and with responses coming in a tidal wave, there may well be another 80,000 more. Yesterday, the EPA submitted a letter to “postpone” making a decision regarding the E15 waiver petition.

rfa-logo-09“This delay from EPA threatens to paralyze the continued growth of the American ethanol industry because of its decision to over analyze this decision,” said Renewable Fuels Association (RFA) spokesperson, Matt Hartwig.

According to Hartwig and seconded by many in the ethanol industry, the data that has been submitted to the EPA in support of this request, “demonstrates that there are no ill effects of ethanol with vehicles today.”

He continued, “In order to avoid this paralysis by analysis, we believe EPA should immediately approve an intermediate ethanol blend such as E12 or E13.” This would represent several more billion gallons of ethanol in the marketplace and, “signal a willingness by the EPA to work with the industry to expand renewable fuels.” It would also, concluded Hartwig, provide a “glimmer of hope,” for those second generation ethanol companies that there will be a market for their product.

You an listen to the full interview with Matt Hartwig here.

Audio, Ethanol, Ethanol News, Government, RFA

EPA Rules to Not Rule on E15 Waiver Petition

Joanna Schroeder

EPA_LogoThe deadline was met yesterday on the Environmental Protection Agency’s (EPA) ruling on the E15 waiver, or was it? The EPA, in a letter to Growth Energy, the organization that filed the E15 Waiver, also known as the Green Jobs Waiver, has ruled to not rule. According to the letter the EPA wrote, “we want to make sure we have all the necessary science to make the right decision.” The letter also stated, “our engineering assessments indicate that the “robust fuel, engine and emissions control systems on newer vehicles (likely 2001 and newer model years) will likely be able to accommodate higher ethanol blends, such as E15.”

Today, that decision is to postpone a ruling on the petition until the DOE completes a study between May- August 2010. In addition, the EPA is looking at “addressing fuel pump labeling issues” should ethanol be blended up to 15 percent in the future. It appears that the EPA won’t make a decision on this petition until the end of 2010 but that when it does, it will be positive.

In response to the letter, Growth Energy Co-Chairman Gen. Wesley Clark said, “This announcement is a strong signal that we growth-energy-logoare preparing to move to E15, a measure that will create 136,000 new U.S. jobs, cut greenhouse gas emissions and lessen America’s dependence on imported oil.”

Tom Buis, CEO of Growth Energy, noted, “The Growth Energy Green Jobs Waiver brought to light the issue of the regulatory cap on ethanol and is responsible for moving this process forward. The importance of increasing the blend is now universally understood. This expanded market opportunity is necessary to draw capital investment for cellulosic ethanol and allows the industry to comply with the Renewable Fuel Standard.”

Buis also commended the EPA for its intent to begin the labeling and public education process in anticipation for higher ethanol blends in the marketplace.

Click here to read the EPA letter and Growth Energy’s response.

Listen to the Growth Energy press conference opening statements from this morning here:
Growth Energy press conference

Audio, Ethanol, Government, Growth Energy, News

Ethanol Industry Reacts to EPA Decision

Cindy Zimmerman

Ethanol industry groups are reacting to the announcement this morning from the Environmental Protection Agency that may be another six months before a final decision can be made on increasing the allowable ethanol content in fuel to 15 percent.

Growth EnergyGrowth Energy, the coalition of U.S. ethanol supporters that filed the Green Jobs Waiver seeking E15, is optimistic that the agency will approve E15 upon the completion of ongoing tests early next year.

“This announcement is a strong signal that we are preparing to move to E15, a measure that will create 136,000 new U.S. jobs, cut greenhouse gas emissions and lessen America’s dependence on imported oil,” said Gen. Wesley Clark, Co-Chairman of Growth Energy.

“While we believe the data included in the Green Jobs Waiver supports raising the blend to E15, critics have called for additional testing. We are confident the ongoing tests will further confirm the data we submitted in the Growth Energy Green Jobs Waiver and silence those critics, allowing more American-produced energy to enter the market.” said Tom Buis, CEO of Growth Energy.

Renewable Fuels Association LogoThe Renewable Fuels Association says the delay threatens the future growth of the ethanol industry.

“In order to avoid paralysis by analysis, EPA should immediately approve intermediate ethanol blends, such as E12,” said RFA president and CEO Bob Dinneen in a statement. “Allowing for a 20 percent increase in ethanol’s potential share of the market would provide some breathing room for the industry while EPA finishes its testing on E15. Additionally, it would represent a good faith gesture that underscores the commitment President Obama has pledged to biofuels.”

EPA’s announcement in a letter to Growth Energy today indicated that it will be the middle of 2010 before they have enough data to make a final decision on the waiver.

Ethanol, Ethanol News, Government, Growth Energy, RFA

EPA Delays Decision on 15 Percent Ethanol Blends

Cindy Zimmerman

EPAThe U.S. Environmental Protection Agency (EPA) today announced that it expects to make a final determination in mid-2010 regarding whether to increase the allowable ethanol content in fuel.

The agency responded in a letter sent today to Growth Energy, the association that requested a waiver that would allow for the use of up to 15 percent of ethanol in gasoline. EPA says that while not all tests have been completed, the results of two tests indicate that engines in newer cars likely can handle an ethanol blend higher than the current 10-percent limit. The agency will decide whether to raise the blending limit when more testing data is available. EPA also announced that it has begun the process to craft the labeling requirements that will be necessary if the blending limit is raised.

Ethanol, Ethanol News, Growth Energy

Biodiesel Board Asks for RFS2 Targets Implementation

John Davis

NBB-logoThe National Biodiesel Board is asking the U.S. EPA to implement targets for biomass-based biodiesel required under the expanded Renewable Fuels Standard (RFS2) … a standard already overdue by a year.

Biodiesel Magazine reports that the NBB has sent a letter to the EPA asking the agency early next year to put in the standards of 500 million gallons of biomass-based Diesel in 2009; 650 million gallons in 2010; 800 million gallons in 2011; and 1 billion gallons in 2012:

“We are rapidly approaching the end of 2009, a year beyond the statutory deadline for RFS2 implementation,” noted Manning Feraci, NBB’s Vice President of Federal Affairs. “The U.S. biodiesel industry has made vital business decisions based on the RFS2 renewable targets, and the nation’s ability to meet these modest renewable goals will be undermined if the EPA does not take immediate steps to implement the Biomass-based Diesel Program.”

In the letter to EPA Administrator Lisa Jackson, the NBB specifically explains the need for the EPA to use its existing authority to implement the 2009 and 2010 Biomass-based Diesel volumes as required by RFS2 no later than January 1, 2010. The letter further explains that the EPA can fulfill its non-discretionary duty to implement the Biomass-based Diesel program under the current RFS program by issuing an appropriate renewable volume obligation specifically for biodiesel.

“Further delay implementing the RFS2 volume requirements will prolong the severe economic hardship facing the domestic biodiesel industry, and we hope the EPA will take the common-sense steps called for in this letter,” concluded Feraci.

You can read Feraci’s letter to the EPA here.

Biodiesel, NBB

Ethanol Industry Waiting on EPA Decision

Cindy Zimmerman

EPADecember 1 is the deadline for the Environmental Protection Agency to issue a decision on the waiver to allow up to 15 percent ethanol in regular gasoline and the industry is anxiously awaiting a positive outcome.

The waiver request was submitted by Growth Energy and an alliance of ethanol producer organizations and companies in early March and by law EPA must take action on it by December 1 and the word from EPA officials last week was that they are committed to making an announcement by the deadline. Growth Energy CEO Tom Buis says they are optimistic. “We think we made the case,” Buis said. “The data we submitted proves there is no impact on engine performance or durability that would prevent the EPA from deciding in favor of E15.”

Matt Hartwig with the Renewable Fuels Association says the decision could go in several directions, three of which his group suggested in comments to the agency. “Obviously one is, yes – E15 is a safe and effective fuel. That’s the one we believe should be their decision,” said Hartwig. “Another option is the E12 pathway, taking that intermediate step while they continue to work on the full E15 waiver.”

He says a third option might be a partial waiver, “Where they say you can use up to E15 blends for on-road vehicle engines, but would put off a complete decision on the waiver with small engines or marine engines until they were comfortable with the data.”

The fate of the ethanol industry hinges on the EPA’s decision, since the so-called “blend wall” has already been reached and without the waiver there will be no way to utilize the production of ethanol required under the Renewable Fuel Standard mandated by the Energy Independence and Security Act of 2007. However, if the EPA denies the waiver, the industry may consider other regulatory or legislative options to overcome the blend wall issue.

Ethanol, Ethanol News, Government, Growth Energy, RFA

Europeans Look for More Sanctions on US Biodiesel

John Davis

USEUflagsEuropean biodiesel makers are poised to file another complaint against their counterparts in the U.S.

Last March, the European Biodiesel Board (EBB) was able to successfully lobby European Union trade officials to impose tariffs of 26 euros ($39.02) to 41 euros ($61.53) per 100 kg (220 lbs) on American biodiesel, complaining the American biodiesel was unfairly subsidized. The tariffs have virtually shut the Yankee green fuel out of the European market. Biofuels International reports that the new complaint says U.S. biodiesel is still getting into Europe by way of third countries:

The EBB said: ‘Against the background of persisting circumvention practices, the EBB General Assembly decided to proceed with the lodging of an anti-circumvention complaint to the EU trade authorities. If and when established, these practices will lead to heavy and retroactive financial penalties.’

The allegedly offending companies have not been identified as of yet, but the EBB is expected to file the complaint in the next few weeks.

Of course, the Europeans don’t seem to want to talk about how high taxes on their own biodiesel, such as in Germany, have severely hurt their own industry.

Biodiesel, International

Pennsylvania Solar Plant to Treat and Transport Water

John Davis

conergysanyoElectronics giant Sanyo and renewable energy company Coenergy are teaming up to build one of the East Coast’s first and largest solar energy plants that will treat and transport water for Aqua Pennsylvania, a public water and wastewater utility, serving more than 3 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, New York, Indiana, Florida, Virginia, Maine, Missouri, and South Carolina.

This Sanyo press release says the 1.1 MW solar energy plant will be built on a 4.5-acre sedimentation basin and will save Aqua Pennsylvania $77,000 a year on its energy bill:

The project – known as Ingram’s Mill Farm – is slated to produce @ 1,300,500 kWh of peak-time energy a year for the treatment and transportation of water for hundreds of thousands of homes and businesses throughout Southeastern Pennsylvania… When completed, Ingram’s Mill Farm will be one of the largest solar farms on the East Coast. Construction is slated for completion as early as the end of this year.

“With improved state and local permitting processes and Conergy’s project expertise, this solution will allow us to reap the economic and environmental benefits of renewable energy in very short order,” said Aqua America Chairman, President and CEO Nicholas DeBenedictis. “It’s a way for us to reinforce our commitment as environmental stewards, cut operating costs, create a hedge against rising energy costs and better serve our communities and investors,” DeBenedictis said.

AquaRibbonlineupMed1This project is being funded by a $1 million Pennsylvania Energy Development Authority (PEDA) grant in the amount of $1 million, which is funded in part with federal stimulus dollars.

Aqua America, Inc. Chairman and CEO Nick DeBenedictis, Conergy Projects, Inc. President Kurt Zwerko, Aqua Pennsylvania President Karl Kyriss, Pennsylvania Public Utility Commissioner Rob Powelson, U.S. Congressman Joe Pitts, Pennsylvania Senator Andrew Dinniman and Pennsylvania State Representatives Barbara McIlvaine-Smith and Duane Milne took part in a groundbreaking earlier this month.

Solar

Montana Announces First Community Wind Project

Joanna Schroeder

Judith_Highlands_Energy_LogoSeveral counties in central-Montana are working together to develop, what could be, the largest wind development project of its kind in the state. National Wind, working with Billings-based Montana Wind Resources, LLC and along with area ranchers, have formed Judith Highlands Energy, LLC to develop over 500 megawatts (MW) of community-owned wind projects.

“Area ranchers are realizing that National Wind’s established business model is distinctly different than “traditional,” corporate wind farm developments,” said Patrick Pelstring, Co-Chair of National Wind, LLC. ” Our National Wind model seeks to allow local community participation, which provides potential for sharing in both turbine leases and revenues from a successful project.”

A 2009 Harvard study suggests that Montana is second only to Texas with the country’s greatest wind potential.  The Department of Energy’s Wind Powering America Program has reported that 1,000 MW of installed wind capacity in Montana could add $1.2 billion in cumulative economic benefits, reduce C02 emissions by 2.9 million tons, and save over 1,200 million gallons of water annually.

According to Judith Highlands Energy, the project incorporates over 50,000 acres, nearly 100 percent of the land needed to develop the wind farm’s first phase. The company is expected to be developed in multiple 100+ megawatt phases over the next 5-8 years, and has stated that they have executed two leases for on-site meteorological equipment (met tower) installation within the next 30 days. The met towers will help determine where the turbines should be placed.

Energy, News, Wind