Stimulus Bill’s Alt Energy Provisions Survive House Vote, Need Senate Support

John Davis

uscapitol1Pres. Obama’s economic stimulus bill passed the U.S. House, but its provisions that will help renewable energy, especially solar and wind power, are still in jeopardy unless lawmakers in the Senate and House can get together on their differences in their two versions of the bill.

This story from Greentech Media says the biggest difference in the two bills deals with allowing renewable energy projects to get direct payments instead of tax credits, a provision which solar and wind power industry groups say will be critical to jump-start funding:

Along with a host of plums for renewable energy – $8 billion in loans for renewable energy power generation and transmission projects and $2 billion for energy efficiency and renewable energy research – the House version of the stimulus bill contained a provision to convert investment tax credits that solar power developers rely on into direct payments to investors for the next two years.

Under the provision, the Department of Energy would pay grants equal to the amount of tax credits – 30 percent of qualifying costs of a project – directly to renewable power developers. The problem with using tax credits to lure investors today is that Wall Street banks and other renewable energy investors that saw big losses last year don’t have taxable income to offset, and thus no appetite for them.

Adding the DOE program would be a huge boon to a renewable energy sector that’s seen both debt and equity financing for projects dry up in the past few months, industry leaders say. Last year saw about $5.5 billion in tax equity deals, but without changes to the way the credit works, that could fall to $2 billion to $4 billion – and that for a solar industry expected to need more than $10 billion for projects in 2009.

But a version of the bill now being circulated in the Senate doesn’t contain the DOE grant provision, Chris O’Brien, head of North America market development for Swiss solar equipment maker Oerlikon Solar, said Wednesday.

Of course, the bills have to be reconciled before anything can go to the president for his signature. Plenty of us will be watching to see what happens.

Biodiesel, Ethanol, News, Solar, Wind

Biodiesel Board Previews Conference

John Davis

nbb-conf-091This weekend is the beginning of the 2009 National Biodiesel Conference & Expo in San Francisco!

Just before he heads out to the conference bright and early Thursday morning, I caught up with National Biodiesel Board Chief Operating Officer Donnell Rehagen, as he was hurrying around NBB headquarters, putting the finishing touches on the details for the four-day conference.

rehagenI’ve got to tell you, he’s really excited about holding the premier event for biodiesel in San Francisco… a city known for its support of biodiesel. In fact, nearly the entire municipal fleet runs on B20.

As always, those attending will have plenty of chances to hear from a wide variety of experts in production, marketing, regulatory issues, and of course, sustainability. In fact, there’s a Sustainable Biofuels Summit starting a day early, Saturday.

But not everything’s strictly business. There’s a golf tournament and a couple of entertainment superstars to see as well. Rocker Melissa Etheridge and actress Daryl Hannah, both big backers of biodiesel, will be at the conference.

Donnell says there’s still time for you to sign up and attend. You can do it through the conference Web site or in person at San Francisco’s Moscone Center starting Sunday, running through February 4th.

You can hear my entire interview with Donnell here: [audio:http://www.zimmcomm.biz/nbb/Rehagenintvw.mp3]

Biodiesel, Biodiesel Conference

Kansas Makes Blender Pump Guidelines Permanent

ks-dept-agKansas Secretary of Agriculture Adrian Polansky announced today that he is making permanent the guidelines his department developed for a pilot project to allow at-the-pump blending of biofuels, including blending ethanol with gasoline in percentages ranging from 10 percent to 85 percent.

Blending under the guidelines was allowed on a trial basis under a pilot project that ran throughout 2008.

“Information we collected during the pilot project confirm that blending pumps can consistently and accurately dispense a range of ethanol blends from a single pump,” Polansky said. “This is a real boon for owners of flexible fuel vehicles who want more choice than either 10 percent or 85 percent ethanol that are the blends most frequently offered. These blender pumps allow vehicle owners to select the blend that works best for them based on performance and price.”

To prevent consumers who aren’t driving a flexible fuel vehicle from dispensing a higher ethanol blend than is appropriate for their vehicle, the pumps feature a bright orange label with the message, “For use in flexible fuel vehicles only.”

E85, Equipment, Ethanol, Government, Miscellaneous

Wind Energy Shatters Record

John Davis

aweaIt’s been another record-breaking year for wind energy in the United States.

A new report from the American Wind Energy Association says that the country’s wind energy industry in 2008 shattered the previous year’s record generating capacity by installing 8,358 megawatts (MW) of new capacity. That’s enough to light and heat more than 2 million homes! But at the same time, the association warns of an uncertain future because of the country’s financial bind:

The massive growth in 2008 swelled the nation’s total wind power generating capacity by 50% and channeled an investment of some $17 billion into the economy, positioning wind power as one of the leading sources of new power generation in the country today along with natural gas, AWEA added. At year’s end, however, financing for new projects and orders for turbine components slowed to a trickle and layoffs began to hit the wind turbine manufacturing sector.

“Our numbers are both exciting and sobering,” said AWEA CEO Denise Bode. “The U.S. wind energy industry’s performance in 2008 confirms that wind is an economic and job creation dynamo, ready to deliver on the President’s call to double renewable energy production in three years. At the same time, it is clear that the economic and financial downturn have begun to take a serious toll on new wind development. We are already seeing layoffs in the area where wind’s promise is greatest for our economy: the wind power manufacturing sector. Quick action in the stimulus bill is vital to restore the industry’s momentum and create jobs as we help make our country more secure and leave a more stable climate for our children.”

The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added nationally last year, according to initial estimates, and will avoid nearly 44 million tons of carbon emissions, the equivalent of taking over 7 million cars off of the road.

The AWEA says quick action on Pres. Obama’s economic recovery plan, which includes some provisions that would help the wind industry is needed as wind turbine makers and construction outfits are getting nervous about the future. The group points out that wind energy jobs grew dramatically in 2008 to 85,000… up from 50,000 a year ago.

The past year also marked a bit of the changing of the guard as Iowa surpassed California in the amount of wind power generating capacity, with Iowa having 2,790 MW and California with 2,517 MW. Of course, both are still far behind Texas, which has a whopping 7,116 MW.

Wind

Propel Holds Grand Openings at 5 Biofuel Sites in California

propel_grandopeningPropel now offers biodiesel and E85 at many additional locations in the state of California. Propel will celebrate the opening of these five sites at an event on January 28:

Rocklin:
Stanford Ranch Rd & Five Star Blvd.

Citrus Heights:
Auburn Blvd & Antelope Rd.

Sacramento:
Folsom Blvd & Howe Ave.

Sacramento:
Florin Road & Power Inn Road

Elk Grove:
Bond Road & E Stockton Blvd.

The grand opening celebration will take place at 6700 Five Star Blvd. in Rocklin, California from 10 a.m. – 1 p.m. Visitors will see the latest green vehicles including the 2009 “Green Car of the Year”, meet advanced fuel industry leaders and public officials that make clean fuels happen and food and prizes will be offered. For more information or to RSVP to the event, email info@propelfuels.com.

Biodiesel, E85

Study: Biodiesel, Ethanol Key to Economic Recovery

John Davis

iowarfaA new study put out by a leading advocate of biofuels finds that green energy sources have been key to keeping the economy on a somewhat even keel and more production would help further economic recovery in at least one state… and you have to believe that it would apply to many more.

At the Iowa Renewable Fuels Association meeting in Des Moines this week, the group released a new study that shows how big of an impact the renewable fuels industry has on Iowa’s economy. Furthermore, idled capacity that goes back into production could boost that state’s economic turnaround:

“2008 was a year of unprecedented challenges for the biofuels industry,” said economist John Urbanchuk, a director with LECG, LLC. “Despite the challenge to profitability, the biofuels industry continued to grow and met the Renewable Fuel Standard target of nine billion gallons for 2008. Iowa leads the Nation in biofuels output accounting for 26 percent of U.S. ethanol and 12 percent of biodiesel production capacity.”

According to the report, “Contribution of the Biofuels Industry to the Economy of Iowa,” Urbanchuk found that ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa and makes a significant contribution to the Iowa economy. Based on the renewable fuels refineries operating at year-end 2008, ethanol and biodiesel:

* Adds nearly $12.0 billion, or about 9 percent, to Iowa GDP
* Generates $2.8 billion of household income for Iowa households
* Supports nearly 83,000 jobs through the entire Iowa economy (or 5.4% of private, non-farm employment), and
* Generates $576 million in state tax revenue.

IRFA officials add that if the nine idled biodiesel and ethanol plants in Iowa were brought back on line, they would add $300 million to Iowans’ income, create over 9,000 new direct and indirect jobs and put over $70 million in additional tax revenues into the state coffers.

You can read the entire report here.

Biodiesel, Ethanol, News

Ag Secretary Answers Ethanol Questions

Cindy Zimmerman

Agriculture Secretary Tom Vilsack got questions about ethanol during his first official press conference Monday.

VilsackVilsack says he favors improving efficiency in ethanol plants in order to ensure that the industry survives the economic downturn. “We need to make sure that the biofuels industry has the necessary support to survive the recent downturn,” Vilsack told reporters.

“The USDA should research, develop and promote best practices to improve efficiency at corn-based ethanol plants, which have been hit hard by volatile corn prices, followed by a sharp drop in demand for the biofuel, which is more expensive than gasoline,” Vilsack said.

The secretary was also asked if sound science and data supports an expansion of the ethanol blending cap. He didn’t really directly answer that but said that USDA would support accelerating research on ethanol production and promoting second and third generation feedstocks.

“Obviously, we have a serious challenge that has been put forward by Congress to meet the various mandates for renewable fuel within our system. In order to do that, we’re going to have to figure out ways to incorporate ethanol into the fuel system at even greater levels over the course of time.” Vilsack said. “And it’s also clear that within a very short number of years we are going to have to be relying on something other than solely corn-based ethanol, based on the mandates and directives. So all of that is to say, there needs to be lines of communication; there needs to be an effort to promote and extend ethanol use in a variety of ways; and there needs to be a recognition that there are challenges to the expansion of that use, and USDA needs to help meet those challenges.”

You can listen to the Secretary’s entire answer to that question here: [audio:http://www.zimmcomm.biz/usda/vilsack-ethanol-cap.mp3]
Read a transcript of the secretary press conference here.

Ethanol, News, USDA

Movie Review – Who Killed the Electric Car?

Joanna Schroeder

who-killed-electric-car1“If there are enough David’s in the world, we can win.” S. David Freeman in “Who Killed the Electric Car?”

I’m switching gears this week and watched a documentary that still has momentum, “Who Killed the Electric Car?” If you have a real passion for alternative energy/technology/environment, then you must watch this movie.

The drama begins by telling us that the number one flaw of cars is smog – one of the top environmental problems in California. So in 1990, the state passed a zero emissions mandate, which in essence, said that some cars on the road should have zero emissions, and each year the number of zero emissions cars should grow. Enter the EV1 (electric vehicle) from GM.

Over the next few years, the EV1 was introduced in California followed by several other electric vehicles, while at the same time, GM along with other auto manufacturers sued California to repeal the law. Now why would a company invest billions of dollars into new technology and then try to sabotage its own success with lawsuits and a covert grassroots PR campaign? There are varying opinions on this but ultimately it worked, as by 2001 or so, every electric vehicle was repossessed and ultimately destroyed. The car companies placed the blame on lack of consumer demand, which was ironically, a “loop-hole” in the zero emissions mandate. In simplified terms, if there was no consumer demand then the law would be repealed. 

I don’t have the space to go into details of what transpired, but there were several conspiracies set forth as to who was the culprit of the killing of the electric car.Read More

book reviews

Biodiesel Conference Features Rock Stars, Race Cars & Sustainability

John Davis

nbb-conf-09Less than a week away from the 2009 National Biodiesel Conference & Expo, Feb. 1-4, in San Francisco!

Among the headliners for this year’s conference are music superstar Melissa Etheridge and movie star Daryl Hannah.

And journalists, if you haven’t signed up for the premier event in the ever-growing biodiesel field, try this pitch on your editors:
ridedrive
# Driving Green on Biodiesel – Sunday, Feb. 1
Take a spin around San Francisco in Solazyme’s Jeep Liberty diesel SUV powered by 100% Soladiesel™ biodiesel derived directly from algae.
nbbracer# Racecar Driver for a Day! – Sunday, Feb. 1
Here’s your chance to don a racing suit, take to the track, and appease your inner “need for speed!” NBB and Volkswagen Motorsports are teaming up to offer members of the media the opportunity to experience the thrills of a biodiesel-powered lap around the picturesque Infineon Raceway in nearby Sonoma, CA. Ride along with professional race car drivers from the SCCA Pro-Racing Volkswagen Jetta TDI Cup Series in their official 2009 series race cars fueled with B5 biodiesel.

Tell ’em how you can give a first-person account of just how powerful a biodiesel-powered race car can be AND report on the smooth performance the green fuel gives to any vehicle on any street. Just make sure you sign up online by January 28th on the media registration Web site.

sustainablebiodieselsummitIn addition, starting this Saturday, Jan. 31st, the conference gets a jumpstart a day early as the Sustainable Biodiesel Summit meets for two days at the same location as the biodiesel conference… the Moscone Center in San Francisco:

As you have come to expect, the Sustainable Biodiesel Summit will provide:

*Experienced and Inspirational Speakers from across the Sustainability Community

*Rich & Practical Session Content for Producers, Distributors, and Consumers

*Case Studies on Sustainability within the Biodiesel Industry

*Exceptional Networking Opportunities

cindyzimmermanAnd our own Cindy Zimmerman will be there bringing you all the important events as they happen. If you can’t attend, be sure to check out all the activities as Cindy talks to the movers and shakers of the biodiesel world. Check it out on the National Biodiesel Conference & Expo blog.

Biodiesel, Biodiesel Conference

Retailer to Add 150 Ethanol Outlets

dw_pumpCrescent Oil is advancing alternative fuel infrastructure through the recent purchase of Dresser Wayne Ovation® iX™ fuel dispensers and the Fusion™ Universal Site Controller. The fuel supplier plans to implement more than 600 new dispensers throughout its more than 150 retail locations across the Midwestern United States. As a result, the sites will be able to sell a wide range of ethanol fuel blends and streamline operations with improved payment security and remote management.

“The Fusion controller’s technology helps us make the most of our equipment,” Phil Near, President of Crescent Oil says. “It is an excellent tool for increasing efficiency and reducing costs.” Crescent Oil selected the Ovation iX fuel dispenser for its flexible hose configuration enables the company’s retail sites to dispense high blend ethanol fuels for flex fuel vehicles through one hose while dispensing lower ratio blends through another hose. It is the first dispenser to offer blended products on multiple hoses.

“This capability is a significant step toward increasing the distribution of eco-friendly fuels, particularly because many states are beginning to mandate dedicated hoses for high-ratio ethanol fuels,” Scott Negley, director of Dresser Wayne North American product management says.

blends, E85, Equipment, Ethanol