Organizations Support Ethanol Tariff

Cindy Zimmerman

Seven commodity and ethanol organizations have written a letter to President Bush in support of the secondary tariff on imported ethanol. The groups called attention to the importance of the tariff for the nation’s growing ethanol industry, as well as to the nation’s energy, economic, and environmental security.

The American Coalition for Ethanol (ACE), Ethanol Producers and Consumers (EPAC), National Association of Wheat Growers, National Corn Growers Association, National Farmers Union, National Sorghum Producers, and the Renewable Fuels Association (RFA) pointed to factors such as oil prices, rising demand, drought, and declining value of the dollar as having more effect on the price of food than biofuels. They urged the President to avoid yielding to the misdirected efforts to blame ethanol for rising prices and to prevent American taxpayers from subsidizing foreign products.

RFA“Removing the tariff would not lower food prices,” said RFA president Bob Dinneen. “Such an action would halt development of new ethanol technologies and take the jobs and economic opportunity being generated by the domestic ethanol industry to foreign countries. I strongly encourage President Bush to recognize that skyrocketing oil prices play a far greater role in the complex issue of food prices than does ethanol and reject the efforts to remove the secondary tariff.”

The 54 cent per gallon secondary tariff was enacted by Congress in 1980 to offset any incentive for imported ethanol to benefit from the 54 cent per gallon tax credit for ethanol blended into motor fuel. The tax credit is taken by refiners who blend ethanol into motor fuel and the purpose of the secondary tariff is to protect American taxpayers from subsidizing imports.

ACE, corn, Ethanol, Government, Legislation, News, RFA

Ethanol Industry Leaders Unite

Cindy Zimmerman

RFA PodcastBiofuels groups from the US, Canada, Brazil and Europe put aside their differences this past week to present a united front to world leaders meeting in Japan.

This edition of “The Ethanol Report” features an interview with Renewable Fuels Association president and CEO Bob Dinneen about the input the groups provided to the Group of Eight meeting of world leaders, what the outcome of the meeting was regarding biofuels, and why it is important for global biofuels producers to work together.

You can subscribe to the twice-monthly “The Ethanol Report” by following this link.

Or you can listen to it on-line here: [audio:http://www.zimmcomm.biz/rfa/ethanol-report-16.mp3]

Audio, Ethanol, International, RFA

Big Easy Bouncing Back with Biodiesel

John Davis

Nearly three years after Hurricane Katrina slammed into New Orleans, destroying a large portion of the city and trashing more than half of its 370 buses, the city is getting some public transportation fueled by biodiesel.

The New Orleans Times-Picayune reports that the eight new biodiesel buses arrive just as skyrocketing gas prices are helping increase ridership:

The vehicles were built by the Orion bus company based in Ontario, Canada. At 35 feet long, the bus is smaller than the standard RTA coach.

Currently, 29 of the buses are in the New Orleans area, with 10 more arriving from New York in the next few months.

The release of the brand-new buses comes at a time of increased reliance on the RTA. From April and May of 2007 to April and May of this year, ridership has increased 53 percent, RTA spokeswoman Rosalind Cook said.

Many of the new riders have been using public transportation in light of rising gas prices, Cook said.

These new buses are more comfortable than the older buses and have better access for riders with disabilities. Plus, of course, they run on cleaner-burning, renewable biodiesel.

Biodiesel

PA Gov Signs Biodiesel & Ethanol Incentives, Mandate

John Davis

Pennsylvania Governor Ed Rendell has signed into law measures that will provide incentives to biodiesel producers while mandating a rising scale of biodiesel percentages in all diesel sold in the state.

This story from FoxBusiness.com has details:

“Pennsylvanians are struggling with higher fuels costs,” said Governor Rendell, who signed House Bill 1202 and Special Session Senate Bill 22 into law at the National Armory in Montgomery County. “Record-high fuel prices are straining family budgets and pinching the bottom lines of our businesses. We need to reduce our dependence on foreign oil and keep our energy dollars in Pennsylvania, to invest in our economy and create jobs.”

Here are the requirements for biodiesel percentages and what is believed to be the first cellulosic ethanol mandate in the country:

All diesel fuel sold at retail must contain:

— 2 percent biodiesel, once in-state production reaches 40 million gallons;

— 5 percent biodiesel, once in-state production reaches 100 million gallons;

— 10 percent biodiesel, once in-state production reaches 200 million gallons; and

— 20 percent biodiesel, once in-state production reaches 400 million gallons.

All gasoline sold at retail must contain:

— 10 percent ethanol, once in-state cellulosic ethanol production reaches 350 million gallons.

Pennsylvania is also investing $5.3 million for in-state biodiesel producers each year through 2011. Those producers will also be able to cash in on a 75 cents-a-gallon subsidy. The bills are expected to add a billion gallons of biofuels a year to the state.

Biodiesel, Ethanol, Legislation, News

Scientists to DOE: “Keep Working on Biodiesel”

John Davis

A committee of scientists that helps the government make decisions is recommending that the U.S. keeps working on biodiesel.

This story from Biodiesel Magazine says a National Research Council committee looking at the 21st Century Truck Partnership, a group of of federal government agencies and private industries, has told the U.S. Department of Energy to continue research into the green fuel:

The review was conducted at the request of Patrick Davis, director of the U.S. DOE’s office of FreedomCAR and Vehicle Technologies. It looked at the high-tech goals and research and development efforts put forth by the partnership, as well as further evaluate the program’s progress and direction and comment on the overall adequacy of the program.

The committee’s findings were published in the book, titled “Review of the 21st Century Truck Partnership.” In it, the committee recommends that the DOE continue its work with biodiesel developers and users to assure compatibility when blending biodiesel with regular diesel. It also said that current DOE work to find an alternative fuel to petroleum has been focused on resolving biodiesel issues, but the agency hasn’t provided a timetable for a successful resolution of those efforts. “Successful deployment will require resolving operational issues and updating the biodiesel specifications,” the review stated. “DOE should develop specific plans, including key actions and timetables, for 5 percent replacement of petroleum fuels.”

The DOE will take the advice into consideration.

Biodiesel, Government

POET Starts Ethanol Publication

Cindy Zimmerman

POETPOET has launched a new quarterly publication called “Vital.”

POET VitalOriginally created to replace over 100 separate newsletters POET distributed every year, Vital is putting a face to the ethanol industry. Throughout 2008, Vital will base its editorial on four main themes: the future of ethanol, community profiles, industry information and environmental advancements.

The first issue of Vital came out in April. The latest issue was mailed on July 7 to over 21,000 readers. The audience includes investors and government officials, as well as grain producers, community members, and other industry stakeholders.

The publication is printed on 100 percent recycled paper using soy-based ink. Online, it can be found at www.poet.com/vital.

Ethanol, News

Four Stations Sell E85 in Miami

Miami OpeningYesterday, nearly 3,000 gallons of E85 were sold within just two hours at four Miami, Florida fueling locations. E85 sold for $1.85 per gallon from 7 until 9 a.m. celebrating the opening of the E85 dispensing units.

A press conference kicked off the promotions at 6:45 a.m. at the Hallandale Beach U-Gas located at 990 W. Hallandale Beach Blvd in Hallandale Beach. This facility is the first in Broward County and this location will be used to fuel all of Enterprise Rent a Car’s flexible fuel vehicles.

“It’s made in the U.S. and it’s cheaper,” said Ignacio Urbieta Jr., co-owner of the Urbieta Oil Company which owns the Hallandale Beach U-Gas.

Additional E85 locations that opened in the state of Florida yesterday included those in Palmetto Bay, Hialeah, and Miami.

The promotion was sponsored by the Ethanol Promotion and Information Council, Protec Fuel, and Urbieta Oil.

E85, EPIC, Ethanol, News

Ethanol Standard Important for Second Generation Fuels

Cindy Zimmerman

A Senate panel heard testimony Thursday that a reduction in the Renewable Fuel Standard would hinder progress toward next generation biofuels.

Senate Environment RFS hearing Meyers and ChalkDeputy Assistant Energy Secretary Steven Chalk told the Senate Environment and Public Works clean air subcommittee that keeping the current RFS policy in place is “critical to ensuring growth in all parts of the biofuels supply chain, from feedstocks, to biorefineries, to infrastructure, including pipelines.”

The hearing was focused on implementation of the expanded RFS, which was passed by Congress and signed by the president in December. The new standard increases the amount of renewable fuels required up to 36 billion gallons by 2022, with 16 billion of that to come from cellulosic sources.

Environmental Protection Agency official Robert J. Meyers testified that as the agency is working to implement “RFS2” they are considering the potential impacts of the standard and working closely with stakeholders at all levels. He noted that the agency received over 15,000 comments on the request by Texas Governor Rick Perry to waive part of the RFS and they will be making a decision later this month on the request.

Senate Environment RFS hearing PierceDuPont vice president for technology John Pierce told the committee that the expanded RFS is an attainable goal, both in terms of corn ethanol and cellulosic. “In fact, there are multiple technology developers intending to produce cellulosic ethanol in pilot or demonstration quantities from a range of feedstocks over the next 24 months. The economics and carbon performance of grain ethanol continues to improve as well, as does agricultural productivity and sustainability in the US. These trends suggest that while the RFS targets are aggressive, as they should be, they are not out of reach.”

Read all the testimony here on the Senate subcommittee website.

Cellulosic, Ethanol, Government, News

Where to Grow Alternative Energy

John Davis

The world faces a daunting task in replacing what’s known as the “cubic mile of oil” consumed worldwide each year. But like any gargantuan task, it all starts with small steps.

To help those small steps grow into sustainable replacements for our dependence on petroleum, this article from Forbes has some suggestions where the most fertile ground in the U.S. would be for alternative energy:

In Texas, for instance, that means wind…
The mountain passes and ridge tops of the Trans Pecos have the highest average wind speeds in Texas. The mountains in the state’s northwest region roll off the southern tip of the Rocky Mountains, and a maze of mountains and valleys funnel the wind into extreme speeds by the time they pass over ridge crests and mountain tops of the Guadalupe and Davis mountains…

Although solar energy varies less from season to season than wind energy, it still depends heavily on local environmental conditions. The town of Inyokern in southern California has the best environmental conditions in the country. Ensconced on the eastern edge of the Sierra Nevada Mountains, Inyokern covers 11 square miles of Kern County in the dust-choked Mojave Desert. Those 11 square miles receive more solar insolation annually than any other comparably sized locale in North America…

For current commercial processes, the highest concentration of biomass is in the Corn Belt states of Iowa, Nebraska and Minnesota. But the long-term prospects for biomass are best with non-food based feedstocks such as switchgrass, wood chips and forest residues.

In addition, Alaska and Hawaii have great potentials for geothermal energy.

As you can see, there’s no one silver bullet for replacing oil. But if we use the places best equipped for each area’s strengths, maybe can get kick that greasy addiction.

Biodiesel, Ethanol, Solar, Wind

Rocket Scientists Seek New Wind Energy Sources

John Davis

Scientists with the National Aeronautics and Space Administration (NASA) are using nearly 10 years of satellite information to figure out where is the best place on the oceans to put up wind energy turbines.

This UPI story says they’re using NASA’s QuikSCAT satellite to search for homes for offshore wind farms:

QuikSCAT, launched in 1999, continuously tracks the speed, direction and power of winds near the ocean surface to predict storms and enhance weather forecast accuracy.

Ideally, offshore wind farms should be located in areas where winds blow continuously at high speeds and NASA said the new research identifies such areas. An example of one such high-wind area is off the coast of Northern California near Cape Mendocino.

“The protruding land mass of the cape deflects northerly winds along the California coast, creating a local wind jet that blows year-round,” NASA said.

Other good places around the world include Tasmania, New Zealand and Tierra del Fuego at the southern tip of South America.

Wind