RFA Pleased with Cellulosic Ethanol Credit Extension

Cindy Zimmerman

The American Taxpayer Relief Act of 2012 passed by Congress on New Year’s Day includes the extension of three key ethanol related tax credits, which starts the new year off well for the ethanol industry.

dinneen-capitol“The one year extension of the cellulosic producer tax credit and accelerated depreciation provides some measure of certainty to ensure that 2013 will be a year of growth and milestones for the advanced ethanol industry,” said Bob Dinneen, President and CEO of the Renewable Fuels Association. “In addition, and equally significant, is the extension of the alternative fuel infrastructure tax credit which will accelerate E15’s entry into the marketplace this coming year.”

Ethanol Report PodcastDinneen says it would be better that the alternative energy provisions were extended for 5-7 years instead of just one, but it is certainly understandable. “Folks do understand that is all that was on the table and really it’s teeing up a longer conversation about what to do with our tax code,” he said. “We want to have that conversation because we want all energy tax incentives on the table” including those benefiting the oil industry.

In this edition of the Ethanol Report, Dinneen talks about the dysfunctional 112th Congress and his optimism that the 113th Congress will be better.

Listen to or download the Ethanol Report here: Ethanol Report on Congress in 2013

Subscribe to “The Ethanol Report” with this link.

Audio, Ethanol, Ethanol News, Ethanol Report, Government, RFA

Fiscal Cliff Aversion Benefits Biodiesel

Joanna Schroeder

The U.S. House of Representatives burned the midnight oil of the first day in the New Year and signed the Senate’s “fiscal cliff” bill. The package includes several tax extenders items, including the reinstatement of the 2013 biodiesel blenders tax credit as well as retroactive credit for 2012. Shortly after the vote, the biodiesel industry reacted including the Renewable Energy Group (REG), the country’s largest biodiesel producer.

us-capitol-fiscal-cliff-vote Photo: Bloomberg | ANDREW HARRAR“We are thankful that Congress and the President support the growth of the biodiesel industry through the reinstatement of the credit and for recognizing biodiesel’s important role in energy and food security and job creation. This tax credit provides certainty for our petroleum distributor customers and, in turn, market stability for commercial biodiesel producers like us.”

The National Biodiesel Board will have something good to celebrate during its 10th Annual Conference: Momentum next month. The $1-per-gallon biodiesel tax incentive was first implemented in 2005. Congress has allowed it to lapse twice, in 2010 and again in 2012. Under the legislation approved by the House on Tuesday and first passed by the Senate on Monday, the incentive will be reinstated retroactively to Jan. 1, 2012 and through the end of 2013. Each time the tax credit lapsed, thousands of jobs were lost and production dropped.

“It’s been a long year with a lot of missed opportunity and lost jobs in the biodiesel industry. But we’re pleased that Congress has finally approved an extension so that we can get production back on track,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board (NBB). “This is not an abstract issue. In the coming months, because of this decision, we’ll begin to see real economic impacts with companies expanding production and hiring new employees.”

Randy Olson, executive director of the Iowa Biodiesel Board, added,  “The passage of the biodiesel tax incentive will mean tangible job creation in Iowa and beyond.  Encouraging production of American-made fuel brings economic development and energy security – two of our nation’s top priorities.  This is an investment in American energy that will pay dividends.  Although the federal Renewable Fuel Standard helped create market stability, one Iowa plant was forced to shut its doors temporarily. The reinstatement of the tax incentive will help Iowa biodiesel reach its full potential.  In 2013, we can expect a thriving industry that contributes even more to the state’s economy.”

It is expected that President Obama will sign the package quickly. The new Congress begins on January 3, 2013 and members have stated that they will continue to work through the country’s financial issues.

advanced biofuels, Alternative energy, Biodiesel, NBB, REG

Appy New Year from Domestic Fuel

Chuck Zimmerman

Appy New Year from ZimmCommAppy New Year from the ZimmComm Team here on Domestic Fuel.

We’re betting that many of you now have a new smartphone or tablet. So whether it’s an iPad of any version or an Android you can get your Domestic Fuil on it most easily via the AgWired App! Within the app you’ll also find the news feeds from our other ZimmComm News Network websites, AgWired.com; PrecisionPays.com and WorldDairyDiary.com. You’ll also find our main Twitter feeds and the feed from our YouTube and Flickr accounts.

Best of all it’s Free!

So click here to find out where you can get the AgWired App and have an Appy New Year.

Company Announcement

A Look at 2012 on DomesticFuel

Joanna Schroeder

df2012new2012 was a challenging year for the renewable fuels industry. The biodiesel tax credit expired, the Renewable Fuels Standard was attacked, E15 continues to be attacked and there is yet to be a Farm Bill passed. With the fiscal cliff looming, many tax credits and incentives for wind, solar and advanced renewable fuels are set to expire. This uncertainty caused the wind energy industry to lay off thousands of workers, and several companies striving to produce advanced biofuels altered their business plans to begin producing biochemicals and biomaterials instead.

But on the positive side, the Domestic Fuel industry won the battle to keep the RFS in tact, E15 is now being sold in several states, the National Defense Authorization Act of 2013 was passed ensuring the military can continue to use and develop biofuels and American Ethanol NASCAR driver Austin Dillion won Rookie of the Year. In addition, more energy was produced using renewable energy such as wind, solar and geothermal than ever before and President Obama was elected for a second term.  All of these stories, plus more, were some of the Top Stories of 2012 on DomesticFuel.

We now have more than 2,100 followers on Twitter (@DomesticFuel). There were over 1200 posts on Domestic Fuel this year, with nearly 175 with audio interviews, podcasts and recorded press conferences. We covered the Iowa Renewable Fuels Summit, National Biodiesel Conference, National Ethanol Conference, Automotive Service & Repair Week, Iowa Ethanol Day, Trade Talk, Farm Progress, the 25th Annual Ethanol Conference, RFA Sponsorship of the Sturgis Motorcycle Rally and more.

As we enter a new Domestic Fuel era, we wish all of our readers, sponsors and friends a healthy, happy, prosperous and blessed new year!

Alternative energy, Miscellaneous, Renewable Energy

Top Stories for 2012

Joanna Schroeder

domesticfuel logoThis is the time of year where people reflect on the year past and look to the next year. 2012 was a roller coaster year for the alternative energy industry but amidst some struggles, the industry saw many successes.  Here is a brief look at some of the top stories for 2012 covered on DomesticFuel.

Top Stories for 2012:

As the country ends the year on the edge of the fiscal cliff, there will be widespread implications for the future of the alternative energy industry. Keep reading energy.agwired.com as we continue to bring you the news.

Alternative energy, Miscellaneous

Best Books of 2012

Joanna Schroeder

Best Books of 2012If your New Year’s resolution to is get a bit smarter about alternative energy and the environment, then start your education with the Best Books of 2012.

Here are the top five best books I read in 2012.

5. “The Powers That Be,” by Scott L. Montgomery

4. “Eaarth,” by Bill McKibben

3. “Sustainable Transport Fuels,” by David Thorpe

2. “Rooftop Revolution,” by Danny Kennedy

1. “Rebuild the Dream,” by Van Jones

Enjoy your reading!

book reviews

Book Review – Build the New City!

Joanna Schroeder

Here is an idea to take into the new year – build a new city – or a utopia for the future. Author Todd Durant proposes the U.S. “Build The New City!” to solve three major problems: create millions of jobs, preparation for population growth and rising sea levels and national pride.

Build The New City Book CoverSome of our readers may be familiar with South Korea’s Songdo IBD, a $35 billion “smart” city and the largest real-estate development in history. Another similar idea is Tatu City in Kenya. One of the keys to both of these cities is that they are being built with climate change in mind. Durant proposes that the U.S. build a similar city from scratch that incorporates urban living, energy efficiency, renewable energy, public transportation and green spaces.

The New City would be built using the concept of the DurantHybrid for urban transportation and neighborhood planning. The New City will be built upon five principles: 1) federal and state governments absolutely must not be involved in any aspect of the funding; 2) funding of the New City must come entirely from private enterprise and investment; 3) the military should not be involved; 4) issue millions in municipal bonds that will serve to raise money for the building of the city; and 5) the workers who build the New City must be paid well.

Durant acknowledges that he is not a city planner, and the book is big on ideas and light on an actual plan. The idea has merits – the U.S. does need to rethink how it is renovating urban living for the future that may be affected by climate change and diminishing fossil fuels. However, realistically, I can’t foresee a future with a new city but I can see some of Durant’s concepts incorporated into the rebuilding of current cities. Have your own ideas? Share them at www.buildthenewcity.com.

Win a copy of this book. Email me with the name of the book in the subject line and your contact info in the body of the email. The winner will be announced in the January 9th issue of the DomesticFuel newsletter.

book reviews, Clean Energy, Climate Change, energy efficiency

E15 Could Save Iowa Drivers $69M

Joanna Schroeder

sig_091712_e15_carouselBased on gasoline sales data released today by the Iowa Department of Revenue, the Iowa Renewable Fuels Association (IRFA) said that Iowa motorists could have saved $69 million in 2012 if E15 would have been widely available in Iowa. E15, a blend of 15 percent ethanol and 85 percent gasoline, is approved for use for vehicles manufactured after 2001 or newer.

“$69 million buys a lot of Christmas presents,” said IRFA Executive Director Monte Shaw. “With E15, Iowans can spend less while boosting the Iowa economy. That’s a pretty good deal. IRFA is working with retailers across the state to make E15 access a reality. Until E15 is widely available, Iowans will continue paying more at the pump than they should.”

The potential savings with E15 were calculated using 1,630 million gallons of Iowa gasoline use (extrapolated from Iowa Department of Revenue figures). Roughly 85 percent of the fuel sold goes into vehicles that can legally use E15. Where E15 has been sold, it has averaged 5 cents per gallon lower than E10.

E15, Ethanol, Iowa RFA

Ag Secretary Reacts to EPA Administrator Resignation

Cindy Zimmerman

Agriculture Secretary Tom Vilsack has had a good working relationship with EPA Administrator Lisa Jackson on various issues important to farmers, ranchers and renewable energy and he is sorry to hear about her resignation from the Obama cabinet.

jackson-vilsack-reg“Lisa Jackson has served our country well as she balanced improving the environment and the health of the American people – while ensuring our country’s economic competitiveness – because they are intrinsically linked,” said Vilsack in a statement today. “Throughout her tenure, she listened to stakeholders, including farmers and ranchers, and took their concerns into account while considering policies that impacted rural America. She was a friend to me and to those who live and work in rural America and her leadership will be missed.”

Vilsack and Jackson met with representatives of the ethanol industry and toured Renewable Energy Group (REG) biodiesel plant in Newton, Iowa last year. Jackson was instrumental in deciding in favor of a waiver allowing the use of 15% ethanol and against a waiver of the Renewable Fuel Standard requested this year.

advanced biofuels, Biodiesel, Ethanol, Ethanol News, Government

EPA Administrator Lisa Jackson Steps Down

Joanna Schroeder

After nearly four years as the Administrator for the Environmental Protection Agency (EPA), Lisa Jackson has announced in a statement that she would be stepping down as President Obama begins his second term. While reports say she gave no specific reason for leaving her position, she said in a statement, “I will leave the EPA confident the ship is sailing in the right direction, and ready in my own life for new challenges, time with my family and new opportunities to make a difference.”

Lisa-Jackson EPAUnder Jackson’s tutelage, the EPA approved the use of E15 in vehicles and light duty trucks manufactured after 2001. She also announced in 2009, during COP15, that carbon dioxide is a greenhouse gas pollutant, and as such, could be monitored. At the time, both of these decisions caused heated debate that still continues.

In a separate statement, Obama said Jackson has been “an important part of my team.” He thanked her for serving and praised her “unwavering commitment” to the public’s health.

In reaction to her departure, Tom Buis CEO of Growth Energy said, “Administrator Jackson has been a dedicated advocate for the renewable fuels industry and her work to reduce our nation’s addiction to foreign oil, while providing cleaner air and a better environment, should be commended.  As Administrator of the Environmental Protection Agency, she should be applauded for all she has done to advance biofuels and a cleaner, better environment. Growth Energy wishes her well and thanks her for her tireless work during her time at the EPA.”

Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), added, “Administrator Jackson put into action the Obama Administration’s commitment to ethanol and other biofuels. During her tenure, she cleared the way for E15 giving consumers more choice and savings at the gas pump and she protected the progress that has been made in reducing our dependence of foreign oil by recognizing the importance and inherent flexibility of the RFS. The ethanol industry thanks her for her service and looks forward to working with her successor to continue the growth of America’s domestic renewable fuels industry.”

While Jackson has not announced her next move, there is speculation that she may run for Governor of New Jersey. There has been no announcement of who will take her place.

Carbon, Clean Energy, Environment, Growth Energy, RFA