Showing posts with label Ethanol. Show all posts
Showing posts with label Ethanol. Show all posts

Monday, June 1, 2015

Obama Administration Wants Less Ethanol

Environmental Protection Agency EPA Logo
The Obama administration, through the US Environmental Protection Agency (EPA), proposed lowering the amount of ethanol blended into the nation's fuel supply.

 Score a win for Big Oil.  And a loss for American consumers.

In its proposal, the EPA set new lower limits despite the intent of Congress when it passed the Renewable Fuel Standard in 2007.

The EPA proposed that refiners blend just 17.4 billion gallons of renewable fuels in 2016.  

 That figure is well below the 22.3 billion gallon amount set by Congress.

 Not surprisingly, the American Petroleum Institute wasn't happy with the new lower amounts.  It wants even less cleaner burning ethanol competing against gasoline.  In it's statement, API President and CEO Jack Gerard called for just 9.7% of the nations fuel be ethanol.  And it's no surprise that they want the RFS legislation re-opened and even repealed altogether.

 Isn't that nice.  Less American-made ethanol and more foreign oil.

 Ethanol groups weren't too pleased either with the lower amount.  

 In it's statement the Renewable Fuels Association (RFA) stated:
“Today’s announcement represents a step backward for the RFS. EPA successfully enforced a 13.8 billion gallon RVO in 2013. The industry produced 14.3 billion gallons of ethanol last year. There is no reason to promulgate an RVO rule that takes us backward. All it will do is result in an ever-increasing supply of renewable fuel credits (RINs) that will further discourage private sector investment in infrastructure and technology. This doesn’t make sense."
And Growth Energy stated:
“It is unfortunate that EPA chose to side with the obligated parties who have deliberately refused to live up to their obligation to provide consumers with a choice of fossil fuels or lower cost, higher performing, homegrown renewable energy at the pump... 
Now the obligated parties, controlled primarily by Big Oil, have refused to live up to their obligation and the initial read on EPA's proposal is they have simply acquiesced to the demands of Big Oil. 

 The proposal is not final.  So you can be sure both sides will spreading the love around Washington DC and the nation to get another number.

 Source: US Environmental Protection Agency (EPA)
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Friday, June 24, 2011

I Choose Ethanol

I Choose Ethanol.



Source: Iowa Corn Growers Association

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Five Ethanol Myths, Busted

Forrest Jehlik, a researcher with the Argonne National Laboratory, has a great article published on wired.com, Five Ethanol Myths, Busted.

He covers the major myths, including energy balance, food vs. fuel, greenhouse gas emissions, water use and mileage.

It's worth a read.

Source: www.Wired.com


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Tuesday, June 14, 2011

Senate Defeats Coburn Amendament To End Ethanol Tax Incentive

The US Senate today voted down, by a margin of 59 to 40, the Amendment by Senator Coburn that would have ended the ethanol tax incentive known as the Volumetric Ethanol Excise Tax Incentive (VEETC).

In order to pass, the amendment needed 60 votes.

The tax incentive, paid to blenders of the ethanol, was established to build the infrastructure required to add this important transportation fuel into this country's fuel supply.

In addition, the amendment would have eliminated the trade tariff on foreign imports of ethanol.

VEETC was already set to expire at the end of this year.

Ethanol supporters have been working on alternatives to the existing credit and Senators John Thune (R-SD) and Amy Klobuchar (D-MN) recently introduced the Ethanol Reform and Deficit Reduction Act legislation to create a variable credit when oil prices are low and to redirect efforts to build additional flex fuel pumps and vehicles.


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New Ethanol Reform and Deficit Reduction Act Introduced


Senators John Thune (R-SD) and Amy Klobuchar (D-MN) along with a bipartisan group of senators have introduced the Ethanol Reform and Deficit Reduction Act.

The senate bill modifies the current Volumetric Ethanol Excise Tax Incentive (VEETC) to a variable tax incentive tied to the price of oil.

Currently, the tax incentive goes to ethanol blenders at .45 per gallon.

Other co-sponsors include Senators Chuck Grassley (R-IA), Mike Johanns (R-NE), Tom Harkin (D-IA), Richard Lugar (R-IN), John Hoeven (R-ND) Tim Johnson (D-SD), Jerry Moran (R-KS), Ben Nelson (D-NE), Al Franken (D-MN), Richard Durbin (D-IL) and Mark Kirk (R-IL).

The bill would also allocate funds saved through the updated ethanol tax incentive, to be used to expand fueling infrastructure through the vehicle of improved tax policies.

The legislation would reduce the federal deficit by $1 billion, end current ethanol subsidies on July 1, 2011, offer a three-year bridge safety net to protect ethanol jobs from oil price volatility, and enable large scale oil displacement through investing in infrastructure and advanced biofuels.

The bill would be an alternative to current ethanol tax credits due to expire at the end of this year.

The Senate will vote today on whether to proceed to a debate on a bill Sen. Tom Coburn (R-OK) bill to end the ethanol tax credits immediately.



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Friday, June 10, 2011

Sen. Coburn Seeks to Destroy American Ethanol

As reported by Politico and others, Senator Coburn (OK) introduced a motion last night to force a vote to eliminate immediately the blender tax credit.

The Volumetric Ethanol Excise Tax Credit, also known as VEETC, is a credit of .45 for every gallon of pure ethanol blended into gasoline.

It goes to the actual "blender" of the ethanol, not to corn growers and not to the ethanol plants that make ethanol.

This credit has helped the oil industry to build the infrastructure required to blend ethanol into the American fuel system.

The vote will come this Tuesday.

This surprise ambush tactic wasn't shared with the Senate's leadership:
Coburn didn’t inform either Senate Majority Leader Harry Reid or Minority Leader Mitch McConnell before he made his move, appearing to catch both completely off guard.
It's not surprising that an oil-state senator would want to attempt to snuff out the only viable competition to oil.

But it is surprising to do it the same week that OPEC met and refused to increase production output.

Especially since Iran and Venezuela, no friends to the United States, led the charge for keeping production constant.

Of course they would.

Continued high gas prices hurts the US economy and every American.

Write or call Congress to let your thoughts be known.

Source: Politico


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Tuesday, June 7, 2011

A Tale of Two Fuel Choice Approaches

World-renowned engineer and best-selling author Dr. Robert Zubrin has published a side-by-side review of the two bipartisan bills which been introduced in the U.S. House of Representatives.

One is H.R. 1380, known as the “New Alternative Transportation to Give Americans Solutions Act,” or “NAT GAS Act” for short.

The other is H.R. 1687, the Open Fuel Standards Act.

The approaches adopted in these two pieces of legislation are very different and  Dr. Zubrin does a good job of highlighting their points:

"The NAT GAS Act, which is strongly supported by oil and gas tycoon T. Boone Pickens, would provide a $7,500 tax-credit subsidy for the purchase of natural-gas cars, as well as a further subsidy to their manufacturers of $4,000 each, for a total of $11,500 per car."

"...the Open Fuel Standard bill does not choose a single winner, and would not cost the treasury anything. Instead, it stipulates that within several years the majority of new cars sold in the U.S. must give the consumer fuel choice by being any one of the following: full flex fuel (i.e., capable of using methanol, ethanol, and gasoline), natural gas, plug-in hybrid, or biodiesel compatible"
Check out the full review HERE.

Source: National Review Online


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Saturday, June 4, 2011

NASCAR Goes Green with American Ethanol


For the 2011 season and as part of its long-term commitment to "going green," NASCAR has embraced American Ethanol by using 15% ethanol for its high-performance race cars.

NASCAR has partnered with American Ethanol to bring the American-grown, clean burning, renewable ethanol to its races.
"NASCAR is committed to being an environmental leader, and the sport has taken significant steps over the years toward conservation by introducing measurable, best-in-class initiatives in recycling, alternative energy, and carbon mitigation," said Brian France, chairman and CEO of NASCAR.

The E15 fuel will be provided by Sunoco.

"We're proud to be part of NASCAR's dedication to conservation with Sunoco Green E15 -- the ultimate high-test ethanol fuel blend. In our six years as official fuel partner, Sunoco has changed with the times by helping NASCAR transition to unleaded fuel, and now we are eager to produce for the sport a high-performance ethanol blend."
The Sunoco Green E15 will be blended at Sunoco's fuel facility in Marcus Hook, Pa. The American-grown and American-made corn ethanol will come in part from Sunoco's new ethanol plant in Fulton, N.Y. 

NASCAR has an informative video on their move to E15 fuel.




This week's race, the STP 400, will be at the Kansas Speedway and will be shown on the Fox network on June 5, at 1pm ET.


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    Saturday, May 28, 2011

    Gov. Mitt Romney Declares His Support for Ethanol

    Former Massachusetts Gov. Mitt Romney came out in a strong show of support of ethanol this week by publicly embracing ethanol subsidies.

    As reported by the Wall Street Journal, Romney:

    “I support the subsidy of ethanol,” he told an Iowa voter. “I believe ethanol is an important part of our energy solution for this country.” 

    Romney made his ethanol-friendly statements while in Des Moines, Iowa.  Romney is a leading contender for the 2012 Republican presidential nomination.  And Iowa is the country's largest ethanol-producing state and an important first stop in the 2012 presidential primary race.

    Romney's announcement comes just a week after Romney's Republican contender, former Minnesota Governor Tim Pawlenty, made his own statement that subsidies for ethanol should be phased out.

    So what is this "ethanol subsidy" that has the presidential contenders making these statements?

    The Volumetric Ethanol Excise Tax Credit, also known as VEETC, is a credit of $.45 for every gallon of pure ethanol blended into gasoline.  It was established to allow the oil industry to invest in the infrastructure to blend ethanol into the country's gasoline supply.  The credit goes to the actual "blender" of the ethanol, not to corn growers and not to the ethanol plants that make ethanol.

    God knows the oil industry wasn't going to do it without some financial encouragement from Congress.  The American Petroleum Institute remains a powerful opponent of alternative fuels like ethanol.

    The VEETC is currently funded by Congress until the end of 2011.  Congress is considering legislation that would modify the credit for future years to promote flex fuel vehicles and the installation of flex fuel pumps.


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    Wednesday, May 25, 2011

    President Orders Federal Fleet to Use Alternative Fuels

    President Obama wants the federal fleet, the largest fleet of light duty vehicles in America, to use alternative fuels by 2015.

    In his Presidential Memorandum released Tuesday, he outlined his goal to  "reduce oil imports by one-third by 2025 and putting one million advanced vehicles on the road by 2015."
    "By December 31, 2015, all new light duty vehicles leased or purchased by agencies must be alternative fueled vehicles, such as hybrid or electric, compressed natural gas, or biofuel. Moreover, agency alternative fueled vehicles must, as soon as practicable, be located in proximity to fueling stations with available alternative fuels, and be operated on the alternative fuel for which the vehicle is designed. Where practicable, agencies should encourage development of commercial infrastructure for alternative fuel or provide flex fuel and alternative fuel pumps and charging stations at Federal fueling sites."
    This good news means that the Federal government will practice what it preaches by actually buying alternative fuel vehicles and ensuring that fueling stations are available.
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    Monday, May 23, 2011

    Ethanol Lowers Fuel Prices!

    A new study shows that the use of American ethanol saved the average U.S. motorist about $800 last year.

    The study, by Iowa State University and University of Wisconsin, economists says that without ethanol, gasoline prices in U.S. would rise almost 92%.

    The impact of ethanol production on U.S. and Regional Gasoline Markets for the period 2000 to 2010 was evaluated by economists the Center for Agricultural and Rural Development at Iowa State University. The results of the study, released last week, show that blending ethanol with gasoline had a dramatic effect on lowering fuel costs.

    • The CARD study says that increased use of ethanol reduced wholesale gasoline prices by an average of $0.89 per gallon in 2010.
    • Midwesterners benefited the most from ethanol because last year they saved $1.37 per gallon compared to the national average of $0.89.
    • The growth in ethanol production reduced gasoline prices by an average of $0.25, or 16% over the entire decade of 2000 - 2010.
    • Department of Energy data shows U.S. gasoline use averaged 138 billion gallons per year from 2000 to 2010, resulting in an annual average savings due to ethanol of $34.5 billion.
    • Last year alone, ethanol reduced the average American household's gasoline bill by more than $800, according to the Renewable Fuels Association.
    • Since ethanol now makes up nearly 10% of the gasoline used in automobiles in the U.S., CARD's economists measured the impact of ethanol's disappearance from the fuel market. If ethanol was no longer available, gas price increases would be of historic proportions, rising by as much as 92% in the short-term.


    Click HERE for the study, go to


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    Wednesday, May 18, 2011

    Corn Prices Higher Regardless of Ethanol

    To hear critics of corn ethanol spin it, the reason corn prices are high is because of that mean ol' nasty ethanol.

    But the facts and analysis from economists just don't support that skewed thinking.

    Corn prices would have done about the same thing with or without ethanol.

    That's the conclusion of a recently released report from the Iowa State University Center for Agricultural and Rural Development (CARD).

    The analysis by Bruce Babcock and Jacinto Fabiosa showed that general pattern of corn prices seen during 2006-2009—increasing prices in in 2006 and 2007, a price spike in 2008, followed by a sharp price decline in 2009—would have occurred without ethanol subsidies or even if corn ethanol production had not expanded.

    It also showed that investor speculation for corn ethanol in 2005, 2006, and 2007 would have occurred even without subsidies due to a combination of cheap corn, a phase-out of MTBE, and higher crude oil prices which made ethanol profitable. Thus, ethanol production would have expanded quite rapidly even without subsidies.
    Using the 2004 corn price of $2.06 per bushel as a reference, actual corn prices increased by an average of $1.65 per bushel from 2006 to 2009. Only 14 cents (8%) of this increase was due to ethanol subsidies. Another 45 cents of the increase was due to market-based expansion of the corn ethanol industry. Together, expansion of corn ethanol from subsidies and market forces accounted for 36% of the average increase that we saw in corn prices from 2006 to 2009. All other market factors accounted for 64% of the corn price increase.
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    Tuesday, May 17, 2011

    New Study on Indirect Land Use Change Clears Biofuels

    Michigan State University (MSU) released a new study this week that clears biofuels from Indirect Land Use Change (ILUC) charges.

    The report conducted by MSU scientists Seungdo Kim and Bruce Dale says that biofuel production in the United States through 2007, “probably has not induced any indirect land use change.”

    This new reports sets the record straight from previous reports that maligned biofuels by using incomplete and faulty data.

    ILUC has been used as an argument for stopping biofuels development.  The theory goes that any acre used in the production of feedstocks for biofuels in the U.S. results in a new acre coming into food or feed production somewhere else in the world.

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    Monday, May 16, 2011

    Rising Gas Prices; America Held Hostage to Foreign Oil

    America continues to be held hostage to foreign oil.  And we are paying for it.  Literally.

    It's hitting everyone's pockets hard.  Rising gas prices continue to climb.  For anyone who has visited a gas pump recently, it's really no surprise.  Gas prices across the country often top $4 per gallon for regular unleaded.  And in some markets, $5 per gallon is the new "norm".

    But the pain doesn't just stop at the local Shell, Mobil or Texaco station.

    Higher gas prices, brought on by higher world oil prices, means these higher costs will be passed along to consumers in higher costs for everyday items like food and merchandise.

    And just very conveniently, Big Oil will show record profits.

    We're addicted to oil. Foreign oil.  Foreign oil that fuels the economies of countries and dictators more than happy to see the fall of American prestige and economic and military might.

    The death of Osama bin Laden, among other factors, fuels the fears that access to foreign oil will be stopped or curtailed.

    But it doesn't have to be that way.  America needs to continue to move to alternative fuels.  And ethanol is already playing its part for a renewable future for America.

    But more ethanol pumps are needed.  And more vehicles capable of using higher blends of ethanol (for example, up to 85% ethanol).

    In conjunction with other energy strategies, America can reduce its dependence upon hostile countries.

    But not if Big Oil has its way.

    Source: US Department of Energy

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    Saturday, May 14, 2011

    That's a Lot of Hamburgers.

    It really is Food AND Fuel for America and the world.

    An important point often overlooked in the war against corn ethanol is that 1/3 or the corn used for producing ethanol is returned as Dried Distillers Grains.


    Ethanol production requires only the starch portion of a corn kernel to produce the American-grown, renewable fuel. The remaining protein, fat, fiber, and other nutrients are returned to livestock feeders.


    A new report this week from the Renewable Fuels Association, Fueling a Nation; Feeding the World, shows that the US ethanol industry is providing an important and growing nutritious livestock feed for both domestic and international markets.

    According to the RFA report, America’s ethanol producers produced nearly 35 million metric tons (mmt) of livestock feed in the 2009/2010 marketing year.  That's a lot of corn that is being returned to the livestock market.

    According to the RFA, by volume, that production is greater than the total amount of grain consumed by all of the beef cattle in the nation’s feedlots.

    The RFA also pointed out some fun facts about how much corn this represents:

    For the current 2010/2011 marketing year, feed production from the ethanol industry is projected at 39 mmt.  
    - if the 39 mmt of livestock feed was a country’s corn crop, it would represent the 4th largest crop in the world 39 mmt of livestock feed would be enough feed to produce 50 billion quarter-pound hamburgers – seven patties for each person on the planet 
    - 39 mmt of livestock feed would be enough to produce one chicken breast for every American every day for a year
    American ethanol produces both Food AND Fuel.

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    Tuesday, March 30, 2010

    E20 Fuel Reduces Carbon Monoxide and Hydrocarbon Emissions in Automobiles

    A new study by the Center for Integrated Manufacturing Studies at Rochester Institute of Technology indicates that the use of E20 fuel, which blends 20 percent ethanol with gasoline, reduces the tail pipe emissions of hydrocarbons and carbon monoxide, compared with traditional gasoline or E10 blends.

    In addition, the research team found no measurable impact to vehicle drivability or maintenance in conventional internal combustion engines.


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    Friday, August 7, 2009

    GAO Report Shows Food Prices Increased Higher than Farm Prices

    GAO Government Accounting Office Higher Food Prices
    A new report by the Government Accountability Office (GAO) found that supermarket prices for food have climbed by 128 percent since 1982 – four times the increase in crop prices for farmers.

    The new GAO report found that since 1982, farmers have generally received higher monthly prices for their commodities, but these prices have increased less than food prices and inflation in the broader economy.

    So exactly how does ethanol lead to higher food prices?

    It doesn't.

    As we've long said here, consumer food prices are largely driven by costs after the farm costs---labor, energy, transportations, marketing AND profits.

    And a Senate committee found earlier this summer that recent higher commodity costs were driven by speculators. Again, not by ethanol policy or farmers.

    But the Grocery Manufacturers Association continues to stir up hatred for the renewable fuel.

    Big Food companies like Kraft Foods continue to record record high profits.

    All thanks to their higher food prices and "let's blame the farmers" strategy.

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    Thursday, August 6, 2009

    Cash for Clunkers Raids Clean Energy Fund

    Car Allowance Rebate System Cash for Clunkers
    Look out, Congress is raiding the clean energy cookie jar!

    "Cash for Clunkers" might sound good to many. It's helping to put new cars into driveways of Americans across the country. (Isn't that a lot like a "chicken in every pot?")

    But it's disheartening to learn that Congress may fund additional billions for the program from monies meant for clean renewable energy development.

    The House voted last week 316 to 109 to add an additional $2 Billion to extend the program and to take the money from the clean energy fund as part of the American Recovery and Investment Act.

    There's a blog post from the House leadership to "return" the money.

    But, who's going to really notice?

    The senate may vote this week, and as soon as today, to pass similar legislation.

    America needs to continue to make investments in renewable energy infrastructure.

    Is raiding Peter to pay Paul really the best approach?


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    Monday, July 20, 2009

    Barrel Blast is a Blast

    As the summer driving season kicks into high-gear, Americans will be burning oil---polluting, dirty foreign oil to be exact.

    But if you're on a "staycation", log onto the new fun Barrel Blaster game provided by the American Coalition for Ethanol.

    The game's simple to play: “Greentown is being overrun by marauding hordes of oil” - and it’s up to you to save the city by shooting down oil barrels when they come on-screen with your weapons - “ethanol zappers.”

    You choose to play between various forms of transportation: a motor scooter, a VW bug, and a Hummer. Each has its own strengths.

    So blast those barrels as you learn more about alternative fuels!


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    Friday, July 10, 2009

    Ethanol Flex Fuel Vehicles Go Postal

    United States Postal Service FFV E85 ethanol vehicles
    The U.S. Postal Service will add 1,000 E-85 ethanol-capable and 900 gasoline/electric hybrid vehicles to its delivery fleet, part of a vehicle purchase by the U.S. General Services Administration (GSA).

    At nearly 220,000, the Postal Service operates and maintains the largest civilian fleet in the country. The 1,900 vehicles from GSA will bring the total number of alternate fuel-capable vehicles in the Postal Service fleet to more than 43,000.
    “With our fleet traveling more than 1.2 billion miles a year, the Postal Service consistently looks for ways to reduce the environmental footprint that results from visiting every home and business in America six days a week,” said Sam Pulcrano, vice president, Sustainability. “The GSA fleet upgrade program will help us continue these strategies.”
    The Postal Service has increased alternative fuel use by 41 percent since 2006, and plans to reduce petroleum use by 20 percent over the next five years. Replacing aging vehicles with more fuel-efficient and alternative fuel-capable vehicles is key to reaching that goal.
    “This is a unique opportunity for the Postal Service to continue work on our goals for improved fuel economy, greenhouse gas reductions, and on our position as an environmental leader,” said Wayne Corey, manager, Vehicle Operations, who is overseeing the vehicle delivery.

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