DF Cast: Is EPA Overstepping RFS Authority?

John Davis

A leaked document from the Environmental Protection Agency regarding the Renewable Fuels Standard is causing some real consternation among advocates for ethanol. While it’s just a draft and has not even been officially released, there is already plenty of debate over the possible proposal, including whether the EPA is overstepping its authority granted under the RFS.

In this edition of the Domestic Fuel Cast, we speak with law and policy professor at the University of Illinois Jonathan Coppess, who says if the leaked numbers are true, EPA COULD be overstepping its bounds, as he outlines in a recent analysis. In addition, Coppess says ethanol advocates could actually get some help in a potential lawsuit over these RFS cuts, ironically enough, from a decision this fall that came in favor of the American Petroleum Institute. And Coppess also says there could be implications for other government policies, including the current farm bill under debate.

It’s a fascinating conversation, and you can hear more of it in the latest Domestic Fuel Cast: Domestic Fuel Cast - Jonathan Coppess, University of Illinois

You can also subscribe to the DomesticFuel Cast here.

advanced biofuels, Audio, Cellulosic, Domestic Fuel Cast, Government, RFS

Angst Over AP Article Grows

Joanna Schroeder

Today was the official release of the Associated Press (AP) article, “The secret, dirty cost of Obama’s green power push,” and the ethanol industry is outraged at the way corn ethanol was portrayed and by how Iowa farmer and retired Methodist pastor Leroy Perkins says his quotes were misrepresented. With the ethanol industry’s outrage gaining momentum, the AP responded by saying “he was certainly aware” of the story’s focus and that “those who were in the interview with him remember it entirely differently.”

Quad County Ethanol Plant

Photo: Joanna Schroeder

“Maybe calling a Methodist pastor a liar is standard defense protocol for DC-based AP reporters, but in southern Iowa that’s an accusation we take very seriously,” said IRFA Executive Director Monte Shaw. “AP should own up to its poor reporting instead of doubling down on their misrepresentations. Just like the AP hit piece on ethanol, once again the AP doesn’t have its facts straight. IRFA contacted the others involved in the AP interviews in Wayne County and they stand behind Leroy. I doubt there is anyone not on AP’s payroll that remembers things their way.”

Also clearly upset by the article is the National Corn Growers Association (NCGA) whose members are corn farmers, many who grow and sell their corn crop to local ethanol plants.

“Today’s controversial story on corn ethanol and land use appears to simply be based on a complete misunderstanding of modern agriculture generally and the Conservation Reserve Program specifically, but unfortunately, the problem is much deeper,” said NCGA President Martin Barbre.

“It is discouraging that the Associated Press appears to be following a political agenda which clearly targets our only renewable alternative to imported petroleum. Even the headline is a colorful but inaccurate indictment. – ‘The secret, dirty cost of Obama’s green power push.’ Secret? There are no secrets in how land is used, as their own reporting shows. Acres are tracked, and the U.S. Department of Agriculture guarantees a high level of transparency. No, these watch words ‘secret’ and ‘dirty’ show clearly that the reporters were sensationalizing the issue to a high degree, which is conduct unbecoming a true journalist,” he continued.

“The fact is, farmers are doing a better job every day of meeting the duel challenges of productivity and sustainability. Land use per bushel is down 30 percent and soil loss is down 67 percent since 1980. Thanks to renewable corn ethanol, we’re using 465 million fewer barrels of oil each year. Thanks to corn ethanol, rural economies are improving. And, yes, the air is getting cleaner. We have no regrets about these outcomes,” added Barbre.

Many in the industry point out that “AP’s standards say they ‘abhor inaccuracies, carelessness, bias or distortions’ yet they say the article contains each of these things. In addition, the biofuels industry is calling foul for not having even one corn ethanol producer interviewed for the article, and there are nearly 40 operational ethanol plants in Iowa.Read More

ACE, corn, Ethanol, Iowa RFA, NCGA, Opinion

Wisconsin Biomass-Fueled Power Plant Goes Online

Joanna Schroeder

We Energies has brought its biomass-fueled power plant located on the site of Domtar Corporation’s Rothschild, Wisconsin, paper mill into commercial operation Friday, Nov. 8, 2013 after testing and commissioning activities were successfully completed. Wood, waste wood and sawdust are being used to produce up to 50 megawatts (MW) of We-Energies-biomass-power-plantelectricity; steam provided by the plant is also supporting Domtar’s sustainable papermaking operations. In addition, Domtar’s use of the steam produced by the plant will help improve the paper mill’s energy efficiency and reduce overall emissions at the site by more than 30 percent.

“The addition of the biomass plant enables us to produce renewable energy on demand,” said Gale Klappa, We Energies chairman, president and chief executive officer. “That benefit is simply not available with solar or wind generation.”

The company’s renewable energy portfolio includes the state’s two largest wind developments – the 145-MW Blue Sky Green Field Wind Energy Center in Fond du Lac County and the 162-MW Glacier Hills Wind Park in Columbia County. Together, these three projects are capable of delivering nearly 360 MW of renewable energy, enough to supply approximately 120,000 homes.

“These renewable energy projects, fueled by Wisconsin resources, were developed largely through the talents of Wisconsin companies and Wisconsin labor,” added Klappa.

More than 400 workers contributed to the construction of the biomass plant, which also will support approximately 150 permanent jobs in the region, including independent wood suppliers and haulers from northern and central Wisconsin who will secure waste wood for the project.

Alternative energy, biomass, Electricity

NASCAR Drives 5 Million Miles on E15

Joanna Schroeder

NASCAR has announced that during the NASCAR Nationwide Series race in Phoenix it surpassed more than five million competition miles across its three national series on Sunoco Green E15, a biofuel blended with 15 percent ethanol, made from American grown corn. The five-million-miles have been accumulated across practice, qualifying and racing laps dating back to 2011 when the biofuel was introduced.

“Fuel is fundamental to our sport and our teams demand performance without compromise,” said Robin Pemberton, NASCAR vice president of competition. “With more 5 million miles on E15than five million miles of hard competitive driving across our three national series, Sunoco’s Green E15 renewable fuel stands up to rigorous racing conditions while significantly reducing our impact on the environment.”

In 2011 NASCAR entered into a partnership with Sunoco and the American Ethanol industry, launching its long-term biofuels program to reduce emissions of the fuel used across its three national series. The transition to the biofuel has reduced on-track carbon emissions and teams report an increase in horsepower.

“The National Corn Growers Association (NCGA) joined the American Ethanol partnership with Growth Energy and NASCAR because we knew ethanol would perform and shine in a very public way. General awareness of ethanol and its benefits is extremely high with the tens of millions of fans who watch racing every week,” said Martin Barbre, NCGA president and Carmi, Ill. farmer. “Ethanol support has always been strong in corn production states, but now the knowledge of ethanol’s economic, environmental and energy security advantages are growing coast to coast.”

Since transitioning to the biofuel blended with 15 percent ethanol, American Ethanol says NASCAR has helped validate the fuel’s qualities and the positive environmental impact of ethanol in front of an audience of millions of NASCAR fans, helping shift attitudes and behaviors around the use of ethanol.

“This five million mile mark is yet another testament to Sunoco Green E15’s value as a fuel and a real validator of our product,” said Tom Buis, CEO of Growth Energy. “You couldn’t ask for a tougher testing ground and Sunoco Green E15 stands up to the challenge each weekend and that’s good news for everyone who supports renewable fuels.”

American Ethanol, E15, Growth Energy, NASCAR, NCGA

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFNewWorld Capital Group, LLC has announced a strategic investment in Astrum Solar, a residential solar installer. NewWorld will also assume a seat on Astrum’s Board of Directors. NewWorld’s co-investors in the transaction were CCM US, LLC and Constellation.
  • Mario Garnero, founder and Chairman of Brasilinvest, Brazil´s foremost merchant bank, and one of the key people on the launching of ethanol mass production project in Brazil, was invited by the Prime-Minister of Israel Benjamin Netanyahu to be a speaker at the Bloomberg Fuel Choices taking place in Tel Aviv from November 12-13, 2013. Israel is on the forefront of research in biofuel and clean energy researches since it has established the world’s most ambitious target: to change its transportation system by replacing 60% of its oil consumption with new technologies by 2025.
  • Alternative Fuels Americas, an advanced biofuels company, confirmed the extension of offtake agreements for the sale of over 3.7 million gallons of biodiesel, accounting for more than $14 million in potential revenues. The company has signed 4 offtake agreements for (1) two million gallons, (2) one million gallons, (3) 571,000 gallons and (4) 190,000 gallons, respectively. All buyers are based in Costa Rica.
  • The Corbett Administration today awarded more than $3 million in Alternative Fuel Incentive Grants to 33 companies, counties and organizations making the switch to compressed natural gas (CNG), liquefied natural gas (LNG), or propane for medium to light-weight fleet vehicles. Abruzzo also announced that the second round of Act 13 Natural Gas Vehicle grants opened on Saturday, Nov. 9, 2013 providing an estimated $11 million to help pay for the incremental purchase and conversion costs of heavy-duty natural gas fleet vehicles weighing more than 14,000 pounds. The Act 13 Natural Gas Vehicle grants are financed by impact fees paid by natural gas operators.
Bioenergy Bytes

Xcel Continues to Attack Rooftop Solar

Joanna Schroeder

Xcel energy has been fighting the loss of market share through its efforts to curb rooftop solar in areas in Colorado. The Alliance for Solar Choice is striking out against the utility for disregarding consumer choice in what they call “an attempt to protect its monopoly status and inflated profit margins.” This would occur if Xcel were able to eliminate the fair credit customers with rooftop solar receive for delivering their excess solar energy to the grid.

Last week’s election results show that Xcel faces an uphill battle in trying to stifle rooftop solar and consumer demands for choice and independence on energy matters. On two separate votes related to Boulder’s effort to create its own utility, pro-municipalization positions outpolled pro-Xcel positions 2:1. Meanwhile Lafayette, Boulder, and Fort Collins all passed restrictions on hydraulic fracking.

“These results demonstrate a clear public desire for more choice, local control and more renewable energy,” said Meghan Nutting, Colorado resident and representative of The Alliance for Solar Choice. “Coloradans know last century’s fossil fuel status quo and a centralized monopoly doesn’t work for a 21st Century Colorado.”

According to The Alliance for Solar Choice in 2011 and 2013, Xcel spent more than $2 million telling the citizens of Boulder that the utility knows better than the community; yet they say, consumers are not buying it. Xcel is currently asking the Public Utilities Commission for permission to pay rates below market value to rooftop solar customers who feed electricity back into the grid. Xcel’s proposal would undermine a policy called net metering and prevent consumers from receiving fair credit for the rooftop solar power they produce. Net metering is in place in 43 states.

“We all should have the choice to produce our own power from the sun without being penalized,” said Nutting. “But Xcel wants to increase their monopoly over our power sources and eliminate this freedom.”

Xcel’s attempts to end net metering and rooftop solar align with a national playbook outlined by the utility’s own trade association Edison Election Institute (EEI) said The Alliance for Solar Choice. EEI’s January 2013 report “Disruptive Challenges” warns that increased consumer adoption of distributed solar will lead to “declining utility revenues, increasing costs, and lower profitability potential, particularly over the long-term,” and proposes efforts to eliminate or counter net metering. Utility monopolies across the country have responded with political force. Just this month, EEI disclosed that it spent more than half a million dollars over a ten-day period on anti-rooftop solar advertising in Arizona.

Alternative energy, Electricity, Solar, Utilities

9 Propane Conversion Centers Join Alliance AutoGas

Joanna Schroeder

Nine new propane conversion centers have joined the Alliance AutoGas, a U.S. distributor of PRINS autogas technologies. New members include:

  • Benna Ford, Superior, Wisconsin
  • R. Anthony Enterprises, Marion, Ohio
  • MRT Manufacturing, Forest Hills, Virgina
  • NAEU North American Upfitters, Hooksett, New Hampshire
  • Northside Auto & Truck Service Watertown, Wisconsin
  • Clean Car Conversions, Indianapolis, Indiana
  • NTC Delta Transportation, Greenville, Mississippi
  • Gary Sapp Automotive, Pensacola, Florida
  • Sherwood Ford of Salisbury, Salisbury, Maryland

Alliance AutoGas Services and NetworkAlliance AutoGas coordinates propane autogas vehicle conversions, installs refueling infrastructure and provides ongoing vehicle maintenance support and training, through a network of more than 90 member companies and conversion centers throughout North America.

“It is of the highest importance that Alliance AutoGas provides a quality support network and keep the vehicles running on the road,” said Stuart Weidie, president of Alliance AutoGas.

Brendan Dunican, sales representative of North American Equipment Upfitters, Inc., added, “The Alliance AutoGas Group is important because it brings together businesses that have common goals and interests in the green initiative (that would normally have no interaction). We (NAEU) working as a conversion center are diversifying our business while maintaining a sense of environmental responsibility. Cleaner gas makes for a cleaner world and future.”

And Northside Auto and Truck Service’s John Mason, president, said they joined because, “Our fleet managers tell us that domestically produced, clean propane that is easier on their pocketbooks are important to them. We are pleased to be a part of the Alliance AutoGas network, enabling our fleets to meet their expectations,”

Propane

Mewah Acquiring Malaysian Biodiesel Plant

John Davis

mewahlogoMewah International, a palm oil refiner in Malaysia, will buy the biodiesel assets of Gomedic Sdn. Bhd for $13 million. Biodiesel Magazine reports the assets include 25,055 square meters of land, with a lease expiring in 2109, and a 30 MMgy biodiesel production facility.

According to Mewah International, the biodiesel plant is strategically located in the vicinity of the company’s largest palm oil refinery in Pulau Indah Industrial Park, Westport, Malaysia. The investment is expected to further consolidate the group’s position as an integrated palm oil processor.

The deal is projected to be finished early next year. Mewah is one of the largest palm oil processor in the world.

Biodiesel, International

Minnesota Gets First Biodiesel Blender Pumps

John Davis

StaplesEnterprise1Minnesota gets its first biodiesel blender pumps with some help from the Minnesota Soybean Research & Promotion Council (MSR&PC). Staples Enterprises in Heron Lake has the pumps offering up to 20 percent biodiesel blends.

“The store and the blender pumps have actually been in operation since January and we’re promoting biodiesel now during our fall celebration,” said Daric Zimmerman, Retail Marketing Director for Staples Enterprises. “With these pumps, we now carry up to five blends of biodiesel here at our Heron Lake store.”

Biodiesel, made primarily from the oil of Minnesota-grown soybeans, has been successfully added to every gallon of diesel sold in the state. Biodiesel is the only domestically produced, commercially available fuel that meets the criteria of an advanced biofuel. Biodiesel can be used in existing engines and fuel injection equipment in blends up to 20 percent with no modifications.

According to Zimmerman, it was important for Staples Enterprises to continue their support of the local markets in which they operate. “We felt that the installation of these blender pumps helped further show our commitment to the area and the local producers.”

Officials point out that the pumps gives customers more choices in their fuel options.

Biodiesel, blends, Soybeans

AP Story Causing Stir Before Release

Cindy Zimmerman

The ethanol industry has gone on the offensive to defend itself against an Associated Press “investigative report” that has yet to be released for publication.

fuels-americaFuels America held a conference call today about the article which is embargoed until after midnight but was circulated last week on the internet. The call included Renewable Fuels Association (RFA) Vice President of Research and Analysis Geoff Cooper and Leroy Perkins, an Iowa farmer who was quoted in the AP story.

Perkins says he was contacted by AP reporters in July to talk about “the county fair, along with absentee, out-of-state state landlords and of course, water quality.” During the course of the interview, one of the reporters asked him what he thought about ethanol. “I told them I was for ethanol, I believe in it and we use it in our vehicles and equipment all the time … because it’s a product of the land,” he said. He never expected his interview would be for a “story to put down ethanol.”

Cooper and the RFA have put together a Counterpoint Fact Sheet on AP story which refutes at least 16 direct quotes from the draft article and he says industry representatives have been in touch with the news agency. “There has been some effort to get these factual inaccuracies corrected,” said Cooper. “If the story we saw that was posted last week is the same story that gets rolled out tomorrow morning, that tells us the AP just isn’t concerned about running a factual story.”

The Associated Press supplies content to thousands of print, internet, radio and television outlets around the world.

Listen to a conference call on the AP article here:AP ethanol story fact check press call

Audio, Environment, Ethanol, Ethanol News, RFA