Ethanol Group Pleased with Passage of Climate Bill

Cindy Zimmerman

The American Clean Energy and Security Act has passed the U.S. House of Representatives by a vote of 219 to 212, with 44 Democrats voting against the bill and eight Republicans voting in favor.

Minority Leader John Boehner (R-OH) spent an hour attempting to force his colleagues to read the 300 page amendment to the bill offered at 3 a.m. Friday morning. Republicans offered a simpler substitute to the massive piece of legislation, but it was defeated.

Renewable Fuels Association President and CEO Bob Dinneen issued a statement praising the House for “taking the first important step toward a national policy to reduce carbon emissions.”

Dinneen also noted that the bill was improved by a compromise worked out this week between House Agriculture Committee Chairman Collin Peterson and House Energy and Commerce Committee Chairman Henry Waxman regarding international indirect land use change and its application in penalizing ethanol production in the U.S. Dinneen says the compromise “will allow for the continued growth of America’s biofuels industry and achieve our environmental and energy goals.”

The Senate is now expected to come up with its version of a climate change bill, but some say that may not happen this year.

Environment, Ethanol, Ethanol News, RFA

New RAND Study: Energy Security Benefit Overblown

Joanna Schroeder

mg838As we approach America’s independence day, the “energy security” benefit many organizations and government officials tout  may be overblown, according to a new study conducted by RAND Corporation. The study, “Does Imported Oil Threaten National Security?” evaluated the risks to national security associated with U.S. imports of oil and assessed the costs and benefits of policies to address these risks. The study was sponsored by the Institute for 21st Century Energy, which is affiliated with the U.S. Chamber of Commerce.

The RAND study evaluated several common concerns about U.S. dependence on imported oil, including:

•    the likely economic impact on the U.S. should a major drop in the global supply of oil occur,
•    attempts by oil exporters to manipulate exports to influence the U.S. or other countries in ways that  are harmful to U.S. interests,
•    the role of oil-export earnings in supporting terrorist groups, and
•    the costs of protecting the supply and transit of oil from the Persian Gulf.

The major finding of the study was that an abrupt and extended fall in the global oil supply and resulting higher prices would seriously disrupt U.S. economic activity, no matter how much or how little oil the U.S. imports. In addition, the study found that the U.S. current oil-export embargoes have been unsuccessful in advancing the foreign policy goals of oil exporters.

The study concludes with policy recommendations that should benefit, not harm the country as several of our current and proposed policies do. Click here to read the full report, “Does Imported Oil Threaten National Security?“

Energy, politics, Research

Network to Connect Wind Power to Power Needs

John Davis

Microsoft PowerPoint - 090105 Green Power Express.ppt
A network of power lines is being built that will connect the areas in the Upper Midwest… especially Iowa, Minnesota and the Dakotas… to the areas of the Eastern U.S. that need the power produced.

This press release posted on TradingMarkets.com says that ITC Holdings, Mitsubishi Electric and Mitsubishi Electric Power Products are expanding their efforts to get the network up and running:

Mitsubishi Electric will produce 765kV transformers for use in ITC’s Green Power Express project, a 3,000-mile long network of transmission lines that will move renewable energy from remote areas in the Upper Midwest to major Midwest and East Coast population centers.

In addition, ITC and Mitsubishi Electric Power Products have agreed to work jointly on the development of a 765kV circuit breaker that will go into production by 2011 at Mitsubishi Electric Power Products’s Warrendale, Pennsylvania manufacturing facility.

Jon Jipping, executive vice president and COO of ITC Holdings, said: “ITC has had a successful relationship with Mitsubishi Electric and Mitsubishi Electric Power Products for over five years and is pleased with this opportunity to extend the partnership as ITC continues to grow.

ITC officials say the partnership will help move up the development of the Green Power Express while encouraging American jobs to build the equipment.

Wind

Tough Times for Soy-based Biodiesel

John Davis

In the past couple of years, soybean growers have seen prices for their feedstock skyrocket as oil prices rose as well and motorists looked for alternatives to petroleum-based fuels. But those rising prices for soybeans put a lot of refineries in jeopardy, despite the growing demand for biodiesel.

Add to those issues, a new proposal from the Environmental Protection Agency that would basically shut out soy-based biodiesel from the Renewable Energy Standard, it’s no wonder Iowa Farmer Today has this story on how biodiesel and soybeans could be in for some tough times ahead:

“The biodiesel industry is hurting right now,” says Solon farmer Ed Ulch, treasurer of the National Biodiesel Board and a member of the Iowa Soybean Association board.

That sentiment is echoed by Jon Scharingson, director of marketing for REG (The Renewable Energy Group), which operates the plant in Newton.

“The last two years have been tough on the industry,” Scharingson says.

He explains soybean prices rose, oil prices fell and several federal governmental issues appeared on the horizon during that time. The combination spelled bad news for biodiesel.

Today, many biodiesel plants are shut down. Others run periodically or at less than 100 percent of capacity.

The second important issue in Washington, D.C., is big. It involves the 2007 energy bill and the language regarding “indirect land use.”

The Environmental Protection Agency (EPA) issued a proposed rule in late May and put that proposal up for comment until late July…

Without soy oil, the United States will not be able to meet renewable fuel goals. There simply isn’t enough animal fat and substitute oils available to meet the levels of production included in those goals.

The article concludes by saying biodiesel producers, large and small, active and idle alike, are just waiting for the change that will put them back on top of the game.

Biodiesel

Verenium, BP Highlands Ethanol Project Selected by DOE

Joanna Schroeder

708_verenium_51The Department Of Energy (DOE) is getting closer to shelling out some cash as part of its role in the new Biofuels Interagency Working Group. It has been tasked with not only creating a comprehensive biofuels market development plan but also to help struggling biofuels plants get back in the black as well as fund start-up advanced biofuels companies to help bring the technology to market faster.

Today, Verenium announced that their jointly owned commercial cellulosic ethanol project with BP, located in Highland County, Florida has been selected by the DOE to enter the due diligence phase of its XVII Loan Guarantee Program. Under this program, the DOE may provide loan guarantees for project debt covering up to 80 percent of eligible costs. The Highlands project is scheduled to break ground in 2010.

“We are thrilled to move forward into this next phase with the DOE,” said Carlos A. Riva, president and CEO of Verenium. “We believe this signals an important endorsement of our cellulosic process technology and a strong show of support for the advancement of next-generation biofuels.”

Cellulosic, Company Announcement

Solano County, CA Gets E85 and Biodiesel

valeroThe first biofuels station has opened today in Solano County, CA. The Plaza Oliver Valero at 1009 Oliver Road in Fairfield is now carrying E85 and biodiesel.

Plaza Oliver Valero will celebrate the grand opening of this new facility Saturday and Sunday. The site will help support the nearly 400,000 flexible fuel vehicles that can use E85 in the state of California.

The station was made possible with a $3.5 million California Air Resources Board grant, administered by the Sacramento Metropolitan Air Quality Management District.

Air Resources Board chairwoman Mary Nichols described E85 as a transitional fuel that will help get Californians used to the idea of trying alternative fuels as the state moves forward in its efforts to reduce greenhouse gas emissions.

Biodiesel, E85

Funds Available for Alt Fuel Infrastructure in 14 States

epa2The Central States Air Resource Agencies, through its Blue Skyways Collaborative, is partnering with the U.S. Environmental Protection Agency to initiate a Green Gas Stations Pilot Program in fourteen states.

The Green Gas Stations pilot program is designed to promote best practices in environmental stewardship and to advance fuel choices. The program will provide $15,000 in funding for gas stations/convenience store owners to improve their environmental impact by contributing to the expansion of the infrastructure for alternative fuels, improve energy efficiency and increase the use of renewable energy at gas stations/convenience stores, as well as to provide a learning experience for motorists to reduce their environmental footprint.

The program will only be available to retailers in the following states: Arizona, Arkansas, California, Hawaii, Iowa, Kansas, Louisiana, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Oklahoma and Texas.

Biodiesel, Ethanol, Miscellaneous

LSU Fans Choose Ethanol at College World Series

Joanna Schroeder

14048087 Ethanol is everywhere – even the College World Series. Each June, Omaha hosts the teams and fans who hope to go all the way. This year, fans were able to cheer in style with their “Choose Ethanol” koozies.

The Renewable Fuels Association recently launched the “Flex-Fuel Challenge” Summer Photo Contest. All you have to do is take a picture of yourself on vacation and submit it. Once all the photos are submitted, people will vote for the winner. Now, if this group of LSU fans (BTW, LSU won this year’s College World Series) hasn’t already submitted their photo, they should by July 31st. I might be a tad biased, but the fact they are promoting ethanol should garner them more votes!

Now in case you’re not convinced that ethanol is good for America and our environment, check out the winning video from the kick-off E85 Flex-Fuel Challenge -“Funky Fresh Flex Fuel”.  Groovy Man.

Ethanol, Ethanol News, RFA

Phibro Ethanol Performance Group Knows FDA

Chuck Zimmerman

Phibro Chem Team at FEWFor those of you not familiar with an FDA, Food Additive Petition (FAP), the folks at Phibro Chem’s Ethanol Performance Group can help you understand what it means to ethanol producers. They market the antimicrobial product, Lactrol.

We normally think of the EPA when it comes to governmental regulations in this industry but FDA is getting more involved. That’s why a company like Phibro, with years of experience dealing with the agency because of the animal health side of their business is probably a little ahead of the curve on this.

I spoke with Richard Coulter, VP, Scientific & Regulatory Affairs and Paul Duquette, Director, Global Regulatory Affairs during the Fuel Ethanol Workshop about this issue. You can see their whole team that attended the conference in the picture.

Richard said they were attending to “talk to producers to inform them of what we’re doing in the regulatory process.” He wants them to know they’re staying on top of it. He says that late in 2008 the FDA decided to join with the EPA and USDA in regulating biofuels due primarily to distillers grains being fed to animals. He says that it’s important for producers to work with suppliers that know how to deal with the total regulatory process. It sounds like Phibro knows how when it comes to the FDA.

Paul says that when it comes to the Food Additive Petition there’s a learning curve going on between the industry and FDA. He says FDA has made it clear that everything that goes into the production of ethanol must be AAFCO approved, GRAS approved, have a regulatory or enforcement discretion letter and then the FAP. Both Richard and Paul say the industry is facing more regulation in the future.

2009 Fuel Ethanol Workshop Photo Album

You can listen to my interview with Richard and paul below:

Agribusiness, Audio, Ethanol, FEW

Ethanol and Biodiesel Details in Climate Bill Compromise

Cindy Zimmerman

The Renewable Fuels Association (RFA) has provided more details about the compromise worked out this week on the climate change bill expected to come up for a vote in the House of Representatives on Friday.

RFA“Good faith negotiations and old fashioned horse sense led to a deal that achieves both our energy security and environmental goals,” said RFA President Bob Dinneen. “By ordering further review of the controversial theory of international indirect land use change, Congress can allow science to catch up with policy goals.”

According to RFA, the compromise contains the following provisions:

The definition of renewable biomass was harmonized with the 2008 Farm Bill language for private lands. Environmental safeguards for public lands were preserved.

The Environmental Protection Agency is prohibited from imposing the unfair penalty of international land use change on biofuels for 5 years while research is conducted to determine the validity of such a theory. After that period, the Secretaries of Agriculture and Energy as well as the EPA Administrator must jointly decide to accept or reject the findings. Additionally, Congress will have one year following that decision to act, if it so chooses.

Biodiesel facilities built before implementation of the 2007 energy bill while be grandfathered into the law in the same fashion as ethanol facilities of the same vintage.

Dinneen says House Ag Committee Chairman Collin Peterson and House Energy and Commerce Committee Chairman Henry Waxman and their staffs deserve a great deal of credit for getting this bill to a vote. “While just the first step in a long process, the House should move quickly to pass this legislation,” he said.

Biodiesel, Ethanol, Ethanol News, Government, RFA