Let Production Tax Credit Expire

Joanna Schroeder

A new report has been released from the Texas Public Policy Foundation analysts Bill Peacock and Josiah Neely reviewing the impact of the Production Tax Credit (PTC) for wind energy.  According to The Cost of the Production Tax Credit and Renewable Energy Subsidies in Texas, the PTC’s current annual cost in Texas alone is nearly $567 million. If the PTC continues, the cost of the tax credit would run about $4.1 billion through the 10 years ending in 2015.

“The continuation of the Production Tax Credit will cause more disruption in electricity markets and impose higher costs on consumers and taxpayers,” said Bill Peacock, the Foundation’s Vice President of Research and Director of the Center for Economic Freedom. “The negative consequences of the Production Tax Credit are even more apparent in Texas, as it has more wind-generated electricity than any other state.”

For wind producers in Texas there are several programs to aid in development: the PTC, Renewable Energy Credits (RECs) under the state’s Renewable Portfolio Standard, federal grants as part of the 2009 stimulus bill and access to transmission through the Competitive Renewable Energy Zone (CREZ) program. When combined, the programs will cost taxpayers about $12.8 billion through 2015 and the cost of subsidies in the state are on the rise.

“Texas is undergoing a major debate over whether price signals are adequate to maintain resource adequacy,” said Josiah Neeley, policy analyst for the Foundation’s Armstrong Center for Energy and the Environment. “A significant portion of the problem with price signals can be directly attributed to the subsidies for wind generation, particularly the Production Tax Credit.”

Peacock added, “Electric competition is working in Texas; rather, it is government interference with the market led by the Production Tax Credit that is causing today’s concerns regarding reliability. Congress should allow the Production Tax Credit to expire. If not, consumers, taxpayers, and Texas’ world-class energy-only electricity market will pay the price.”

Alternative energy, Electricity, Energy, Renewable Energy, Wind

‘America’s Natural Gas Highway’ Expands

Joanna Schroeder

GE and Clean Energy Fuels have announced a partnership to expand the infrastructure for natural gas transportation in the U.S. The idea for the project is to develop a natural gas highway or network that will enable trucks to operate on Liquefied Natural (LNG) from coast to coast. In a press statement, the companies say truck fleets can reduce fuel costs by more than 25 percent and lower tailpipe emissions when using LNG.

Clean Energy Fuels will initially purchase two ecomagination qualified MicroLNG plants from GE Oil & Gas. The modular units rapidly liquefy natural gas while minimizing a site’s physical footprint and will support fueling stations along major transportation corridors across the U.S. To help support the costs of the infrastructure, GE Energy Financial Services is providing up to $200 million in financing.

“GE is proud to be partnering with Clean Energy Fuels to develop natural gas infrastructure in the U.S. Clean Energy is an industry leader in pioneering a new way for America to fuel its vehicles and to further gain energy independence,” said GE Chairman and CEO Jeff Immelt. “With an abundance of cleaner, more affordable natural gas here in the U.S., this is an important opportunity for GE to join Clean Energy in changing the way America drives. It’s also a critical step in developing a natural gas-for-transportation fuel model that can be easily exported to other countries interested in exactly these kinds of breakthrough projects.”

Clean Energy expects to complete approximately 70 LNG stations by the end of 2012, with more planned for next year. Clean Energy’s stations are targeted at long-haul, heavy-duty trucks. In 2013, four major manufacturers will introduce the Cummins Westport 12-liter LNG engine, which is the optimum size for long-haul Class 8 trucks.Read More

Alternative energy, Liquefied natural gas (LNG)

Report: Loss of Military Biofuels Hurts Civilian Economy

John Davis

A report from an environmental group warns that the loss of the U.S. military’s biofuels program means a loss of potential jobs and economic activity in the civilian sector. Environmental Entrepreneurs (E2) says the Department of Defense’s plans to expand its use of biofuel in planes, ships and other vehicles would generate at least about $10 billion in economic activity and create more than 14,000 jobs by 2020. But Congressional plans could curb all that:

[U]nder the National Defense Authorization Act (NDAA) that Congress is expected to take up in the next several weeks, the military – the nation’s biggest user of oil and gasoline – would be prohibited from expanding its use of biofuel.

“The military often leads major economic transitions in our country – think about aviation, communications or the Internet,” said Nicole Lederer, co-founder of E2, whose 800-plus members include business executives and investors who advocate for sound environmental policy that can lead to economic prosperity.

“Yet right now in Washington, some shortsighted lawmakers are poised to block a potentially major transformation of our national energy supply – and also hold back the significant economic growth and job gains that would come with it,” she said.

Russ Teall, president and founder of biorefinery builder Biodico, which recently signed an agreement to provide advanced biofuels to the U.S. Navy, said:

“The military is the biggest driver of the biofuel industry right now. If Congress stops the military from doing what the military knows is best, Congress also could threaten the growth of the Made-in-America biofuel industry.”

The report goes on to point out that military developments particularly in the aviation field could help the commercial airline industry expand its use of biofuels.

biofuels, Government, Legislation

National Biodiesel Board Elects Governing Board

Melissa Sandfort

National Biodiesel Board members selected their trade association leadership, electing three returning governing board members and four new members to serve on the leadership committee to lead America’s advanced biofuel.

Officers elected to lead the board are:
• Gary Haer chairman, Renewable Energy Group, Inc.
• Ed Ulch, vice chair, Iowa Soybean Association
• Ron Marr, secretary, Minnesota Soybean Processors
• Steven Levy, treasurer, Sprague Operating Resources

Biodiesel board members also voted to fill seven board member spots. Board members elected to the Governing Board included treasurer Steven Levy and:
• Greg Anderson, Nebraska Soybean Board
• Jennifer Case, New Leaf Biofuels
• Mike Cunningham, ASA
• Brandon Foley, Sanimax
• Tim Keaveney, HERO BX
• John Wright, Owensboro Grain Company

Bob Metz, Robert Stobaugh, Kris Kappenman, Ed Hegland, and Jim Conway also continue to serve on the Governing Board.

Agribusiness, Biodiesel

Poll Reveals Split Emotions

Melissa Sandfort

Our latest ZimmPoll asked the question, “How do the election results make you feel?”

Our poll results: Thirty-two percent said disgusted; twenty-six percent said happy; fifteen percent said afraid; nine percent said sad; seven percent said mad; five percent said depressed/suicidal and four percent said apathetic. So, it looks like there were a wide range of emotions as the votes were being tallied but an almost 50/50 were disgusted while the others were happy. Pretty even with how the election turned out!

Our new ZimmPoll is now live and asks the question, ” What’s your favorite Thanksgiving food?” Turkey will most likely bless the tables of many, but does your family have a special Thanksgiving food that just makes your taste buds dance? Let us know!

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

ZimmPoll

Iowans Drive on E15

Joanna Schroeder

Since E15, a fuel blend of 15 percent ethanol and 85 percent gasoline, has been sold in Iowa, drivers have already successfully driven more than 125,000 thousand miles, or the equivalent of driving around the world five times. The first E15 station opened in Iowa about two months ago and E15 can be used in all vehicles 2001 or newer. This data tracks consumers using E15 in approved vehicles that are not flex-fuel vehicles (FFVs).

“E15 pricing and performance have started off great in Iowa,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “Despite the oil industry’s efforts to scare retailers and consumers, E15 is starting to gain some traction here in Iowa, and consumers are beginning to realize the cost-saving and performance benefits of E15. One hundred and twenty-five thousands miles is more than five times around the world, but the E15 expedition is just getting started.”

Retailers wishing to offer Iowans the choice of E15 should contact the IRFA to learn about the many E15 incentives available and for assistance in complying with state and federal E15 guidelines.

biofuels, Ethanol, Iowa RFA, Renewable Energy

Virgin Islands Go “Giant” with Biomass Energy Crop

John Davis

Giant King(TM) Grass is now growing in the Virgin Islands and could help the U.S. territory meet its goal of 22 percent of its energy from renewable sources by 2025. California-based Viaspace, Inc. sent the first shipment to St. Croix, and Tibbar Energy USVI LLC has planted it with hopes that it will become a key part of that company’s 6 MW biomass energy project on the 1,000-acre Giant King Grass plantation.

The Giant King Grass will be used as a feedstock for anaerobic digestion, generating biogas which will be used to produce electricity. No grass is burned in this process. Anaerobic digestion is a biological process.

The benefits of this project to the island are not only in the energy production. Additional benefits include:

— The branding of St. Croix as a renewable energy producer
— Helping to meet the Virgin Islands renewable energy goal of 22% by 2025
— Provides organic fertilizer for local farmers, agricultural scholarships and new agricultural activity
— Developing co-operative growing agreements with local famers
— Creates high quality permanent jobs.
— Converts 800 acres of underutilized land to agricultural use
— Invests millions of dollars into the island”

This is part of Tibbar’s 20-year project, expected to be fully online early in 2014.

Besides growing Giant King Grass, Viaspace is also growing its social media presence. You can also follow the company on its Facebook page, www.facebook.com/viaspaceinc, and through Twitter @viaspace.

biofuels, biomass, Cellulosic, feedstocks

Group: Mil Development of Biofuels Helps Economy

John Davis

A group of business leaders who purport to “promote sound environmental policy that builds economic prosperity” have a report making the case that biofuels used and developed by the military could help the economy. Environmental Entrepreneurs (E2) will release the report during a news conference tomorrow, Nov. 14 at 11 a.m. EST that says the Department of Defense’s Advanced Biofuels Initiatives could generate more than $10 billion in economic activity and more than 14,000 jobs:

Congress is about to take up the National Defense Authorization Act, which in current versions would prohibit the DoD from moving forward with its plans and desires to increase its use of biofuels. Citing national security concerns, the Navy and Air Force want to replace 50 percent of their fuel supplies with non-petroleum biofuels by 2020.

Just as military innovation and leadership transformed our nation’s economy in sectors ranging from aviation to communication to computers, the military’s biofuels expansion could provide a major boost to the economy and job creation, and help transform the nation’s energy, airline and agriculture industries.

E2 leaders, biofuels executives and military advocates will be on the phone call to discuss how military investments in biofuels can pay off for the private sector.

Media members are encouraged to contact Bob Keefe at bkeefe@e2.org or (202) 289-2373; or Patrick Mitchell at pmitchell@hastingsgroup.com or (703) 276-3266 to sign up for the news conference.

biofuels, Environment, Government, Legislation

Growth Energy Awaiting RFS Decision

Cindy Zimmerman

The ethanol industry is anxiously awaiting the pending decision by the Environmental Protection Agency on a requested waiver of the Renewable Fuel Standard.

Growth Energy CEO Tom Buis remains optimistic that the RFS will be upheld. “We’re pretty confident that the proponents of the RFS waiver did not prove the point that the economic harm was attributable to the RFS,” said Buis at the National Association of Farm Broadcasting annual meeting last week. “In fact, we contend that the economic harm to all to of America if you mess with the RFS would be greater than if you left it alone. It’s greater for farmers and farm income, it’s greater for consumers in higher gas prices, it costs you jobs – last time I looked everybody wants more jobs, not less. Anyone with any common sense would say the economic harm was caused by Mother Nature, not the ethanol industry.”

Buis says he is glad the election is over and Congress can get back to work on a farm bill and extending important tax incentives like the cellulosic tax credit and alternative minimum fuel tax credit.

Buis also discusses cellulosic ethanol production, E15, American Ethanol and NASCAR in this interview: Tom Buis, Growth Energy

2012 NAFB Convention Photo Album

Audio, Ethanol, Ethanol News, Growth Energy, RFS

ACE Announces 2013 DC Fly-In Dates

Joanna Schroeder

Each year, the American Coalition for Ethanol (ACE) highlights the benefits of ethanol during its advocacy event in Washington, D.C. known as the “Biofuels Beltway March”. The fifth annual event will happen on Wednesday, March 13 and Thursday, March 14, 2013.

“In anticipation of a fight over the fate of the Renewable Fuel Standard (RFS) in Congress next year it is critically important for ethanol industry supporters to mark their calendars and join ACE for this fly-in,” said Brian Jennings, Executive Vice President of ACE. “With so much at stake, ACE’s fly-in will enable ethanol supporters to proactively explain in their own words what ethanol is doing to reduce gasoline prices, create jobs, and cut our foreign oil dependence so we can win the battle over the RFS and secure market certainty for E15 and higher ethanol blends.”

During the last four years, fly-in participants from all over the country have joined ACE to help drive home the message to Congress of the diversity and breadth of ethanol’s benefits to America. During the fly-in event, participants will break into teams for meetings with Members of Congress or their staff about the importance of the RFS, E15, and other priorities to be determined by ACE membership. Sixty-five ethanol advocates met with nearly 200 congressional offices during the 2012 fly-in.

To learn more about the event or to register, click here.

ACE, Alternative energy, biofuels, Ethanol, Renewable Energy