Monday, April 26, 2010
Volume 1, Issue 9
NYSERDA Expands Biofuels Program for Another Year
The New York State Energy Research and Development Authority has extended their Biofuel Station Initiative that will allow for 50 percent of the costs, up to $50,000 per site, for new installations of biofuels dispensing equipment, storage tanks and associated piping equipment.
Read More >>
North Dakota establishes ethanol promotion group
BISMARCK, N.D. – Gov. John Hoeven, the North Dakota Ethanol Council and ethanol industry leaders today announced the establishment of a new program that will fund the newly-established North Dakota Ethanol Council’s marketing activities by dedicating a share of the industry’s production profits to promotion of ethanol.
Also known as a check-off, the program dedicates three one-hundredths of one cent per gallon of ethanol produced and sold in the state to develop research, education programs, promotion, and market development efforts to help build the state’s ethanol industry. The Council’s projected annual budget is $100,000.
“North Dakota’s agricultural economy and rural communities have directly benefited from the growth of the ethanol industry in our state,” Hoeven said. “Ethanol creates jobs and boosts income for our farmers.”
The North Dakota Ethanol Council includes representatives from all of the state’s major ethanol producers, including ADM Corn Processing, Walhalla; Blue Flint Ethanol, Underwood; Hankinson Renewable Energy, Hankinson; Red Trail Energy, LLC, Richardton; and Tharaldson Ethanol Plant, Casselton. Jeff Zueger of Blue Flint Ethanol serves as the group’s chairman.
“As an industry, we are excited to have the Council established and staff hired,” says Jeff Zueger, NDEC chairman and Blue Flint Ethanol general manager. “These steps allow us to move forward with a coordinated effort to expand the ethanol industry in North Dakota.”
The concept for the North Dakota Ethanol Council grew out of the EmPower North Dakota Commission, which was created by the Governor and authorized by the State Legislature in 2007 to further advance the state’s comprehensive energy policy, known as Empower ND. EmPower North Dakota works to develop all of the state’s energy resources, both renewables and traditional energy resources.
Read the full article at AgWeek.com
Read More >>
Growth Energy Offers Counter Mat for E85 and Blender Pump Stations
By popular demand, Growth Energy is offering specially designed “counter mats” for retailers. These heavy duty mats inform customers of how to distinguish their vehicle as E85 compatible from inside the convenience store every time they make a purchase.
To order a counter mat for your facility, click here.
Read More >>
Extending Tariff, Tax Credit Would Spur Job Growth
U.S. Ethanol Supporters Endorse Grassley-Conrad Bill
WASHINGTON, DC – Growth Energy, the coalition of U.S. ethanol supporters, issued the following statement after Sens. Charles Grassley, R-Iowa, and Kent Conrad, D-N.D., introduced a bipartisan bill to extend the Volumetric Ethanol Excise Tax Credit (VEETC) and ethanol tariff for five years and the cellulosic tax credit for three years, all at current levels.
“Extending these measures will ensure job growth and economic development across the entire country—all while reducing our dependence on foreign oil and cleaning our skies,” Tom Buis, CEO of Growth Energy, said. “If we let the tariff and VEETC expire, it would drain both hundreds of thousands of jobs and billions of dollars right out of our economy.”
The Senate bill mirrors bipartisan legislation that was introduced in the House in March by Reps. Earl Pomeroy, D-N.D., and John Shimkus, R-Ill. Pomeroy serves on the tax-writing House Ways and Means Committee, while in the Senate, both Grassley and Conrad serve on the tax-writing Finance Committee, giving the bipartisan legislation a strong advantage in the Congress.
Buis cited a University of Missouri study which found that allowing the tariff to lapse would force job losses of 39,506 in the first year, 115,624 in the second year, and 161,384 in the third year – with job losses continuing year-to-year and never regaining. The decline in economic activity was calculated at $9.2 billion in the first year, $26.4 billion in the second year, and $36,651 in the third year.
Read the full release at GrowthEnergy.org
Read More >>
Hoosiers Get Ethanol
Source: Hoosiers Ag Today
Last week the ethanol industry launched a series of national television ads designed to change consumer attitudes about ethanol. Those attitudes, however, don‘t need to be changed here in Indiana. When it comes to understanding ethanol, where it comes from, and why it is a good alternative to petroleum, Indiana motorists get it, says Greg Noble with POET Energy. “In the Midwest, most consumers are familiar with corn production and with ethanol,” he told HAT. He said that the further you move away from the farming population the less understanding there is. On the coasts, for example, there is very little understanding about ethanol, where it comes from, and its advantages.
One of the reasons Hoosiers understand ethanol so well is thanks to the efforts of Indiana farmers. Mark Walters, with the Indiana Corn Marketing Council, says their research shows the ethanol message has reached most Hoosiers, “Our research shows that Indiana consumers are very supportive of renewable fuels and ethanol in particular.” Walters said most Hoosiers understand the economic value ethanol brings to the state, they understand the environmental benefits, and they very much understand this is a matter of national security.
Most gasoline in Indiana is blended with 10% ethanol, but higher blends like E-85 are still hard to find. Currently, there are only 130 locations in the state that sell E-85. Walters says corn farmers are investing funds to help build the E-85 infrastructure, “I will be the first to admit we need more of those pumps and we need more flex fuel vehicles on the road.” Walters says that the more flex fuel cars there are on the road, the more willing retailers will be to put in flex fuel pumps.
Listen to an mp3 of this report at Hoosiers Ag Today.
Read More >>
ExxonMobil pays no U.S. corporate income tax; ethanol industry generates millions for communities
Source: Nebraska Ethanol Board
How much money did you send to Uncle Sam today? Chances are it was more than Exxon Mobil. According to Forbes Magazine, the oil giant didn’t pay a single dime in corporate income tax to the U.S. government in 2009.
To be fair, Exxon Mobil did pay corporate income tax; just none of it went to the U.S. government. Thanks to an elaborate scheme involving 20 subsidiaries based in off-shore tax shelters like the Bahamas and Cayman Islands, Exxon Mobil paid no U.S. corporate income tax on their 2008 profits of $45.22 billion.
Ethanol, however, continues to generate revenues for federal, state and local governments while creating thousands of outsource-proof jobs, at ethanol plants and in related industries. Omaha-based Union Pacific Rail Road was the transportation mode of choice for many Nebraska ethanol producers shipping ethanol to West Coast markets. The ethanol industry continues to create business for Nebraska companies and jobs for Nebraskans.
According to the Nebraska Public Power District, the ethanol industry has generated over $63.3 million in new tax revenues in Nebraska alone, while adding $2.13 million in household income and creating over 3,000 jobs. Another study found that in 2008, the ethanol industry generated $11.9 billion in federal tax revenues.
Todd Sneller, administrator of the Nebraska Ethanol Board, said one new ethanol plant can provide millions in tax revenue.
“Ethanol plants pay taxes that benefit Nebraskans,” Sneller said. “Ethanol is the rural development success story of Nebraska. It’s a win for drivers, farmers, and government. On April 15 it is especially important to recognize industries that make important contributions to our economy. As consumers make a fuel choice at the pump we encourage the ethanol option.”
Read More >>
Member Spotlight – Propel Fuels
Propel Fuels was founded in 2005 to make alternative fuels available to a market that could not have access to them. The company first started in Seattle and in 2008 moved to California to help alternative fuels and carbon fuels. Today, there are currently 12 people on the Propel team, but they are looking to expand rapidly.
Propel builds, owns and operates a growing network of alternative fueling sites. Their goal is to provide the community with easy access to high quality clean fuels. They partner with existing gasoline retailers, assisting with permits, equipment and financing.
Currently Propel Fuels has a total of 11 fueling stations in which 5 carry E85 that are located in Sacramento, CA. The other six are located in Seattle and they carry biodiesel. Propel was originally attracted to the market in Sacramento because of the incentives and grant agencies. Based on a tremendous success with the other fueling sites in Sacramento, Propel plans on installing 100 sites within the year.
Chief executive officer Matt Horton says, “We will be building in all the major markets in the next 12 months.” Propel recently received $20 million to roll out E85 and biodiesel sites when they partnered with the state of California.
The main reason Propel Fuels joined Growth Energy Market Development was to understand feedback from ethanol suppliers and producers, but also to cultivate relationships with those in the industry.
The most challenging aspect according to Horton is consumer education and market perception. Many people have not been exposed to E85 and been educated on the vehicles can use it. Propel partnered with auto dealers in Sacramento to change misconception and to educate consumers.
“We need to focus our efforts on where we reach people, building closer relationships with domestic and foreign dealers and discussing the availability of E85 but also the major benefits,” noted Horton. “Driving awareness of mapping out locations that carry E85 but also driving the message of the benefits ethanol contributes to nation security and environmental benefits.”
Read More >>
New and Renewed Growth Energy Market Development Members
Triple Ag Supply
Growmark
Mansfield Oil Co.
Country Pride Coop
Mid Pac Petroleum, LLC
Anjon of Bridgehampton, Inc.
Read More >>
New E85 and Blender Pump Stations
| Chevron Service Center | 3240 Fort Mead Road | Laurel | MD |
| Super Pantry #32 | 1501 N. Division | Morris | IL |
| Terrible Herbst | 810 West Mesquite Blvd | Mesquite | NV |
| Get Green LLC, Hot Stop | 7625 Shore Haven Drive | Las Vegas | NV |
| Circle K – Sunoco | 1349 Hwy. 60 East | Lake Wales | FL |
Read More >>
Letters to Growth Energy
Please send comments, questions or suggestions to our Market Development Team and we will share them with our readers in our next FYI newsletter. Email questions, comments or suggestions to: marketdevelopment@growthenergy.org.
Events Calendar
To submit a Calendar item, email marketdevelopment@growthenergy.org.
Monday, April 12, 2010
Volume 1, Issue 8
U.S. Ethanol Industry To Launch First-Ever National TV Ad Campaign
America’s ethanol supporters launched the industry’s first national TV ad campaign today to promote the only renewable, domestic fuel that is an alternative to imported oil, which makes up nearly 60 percent of the nation’s fuel supply.
“Ethanol is America’s fuel: it’s made here in the U.S., it creates U.S. jobs, and it contributes to America’s national and economic security. This ad campaign is designed to reach beyond the Beltway to communicate those facts about ethanol to the broader American public — people who until now have only heard one side of the story,” said (Ret.) Gen. Wesley K. Clark, Co-Chairman of Growth Energy, the coalition of U.S. ethanol supporters that is airing the “America’s Fuel” campaign.
Read more about the ads, watch the spots and see a webcast from the launch event at GrowthEnergy.org.
Read More >>
Tennessee DOT Offering E85 Grants — Deadline is Fast Approaching
The Tennessee Department of Transportation (TDOT) is now accepting applications for the next round of Green Island Biofuel Corridor Network grants. The deadline to apply for the grants is April 30, 2010.
The Green Island grant program is a competitive funding opportunity available to retail fuel station owners and farmer co-ops interested in promoting and selling two biofuel blends, E85 (ethanol) and B20 (biodiesel). The goal of the Green Island grant program is to establish a statewide network of publicly accessible B20 and E85 refueling stations, particularly along interstates and major highways and in major population centers.
“Green Island grants encourage and help expand the commercial availability of biofuels in Tennessee, giving motorists more options at the pump and reducing harmful vehicle emissions,” said Gov. Phil Bredesen in a written press statement. “This program is a vital piece of the state’s efforts to make biofuels a real option for Tennesseans.”
TDOT Commissioner Gerald Nicely says now that 65 biofuel pumps are serving Tennesseans across the state, this round of Green Island Grants focuses on completing the development of the Green Island Corridors.
“We want to identify partner retail fuel stations in areas along our major corridors where biofuel stations are not currently in place, particularly in the Chattanooga and Memphis areas,” Nicely also said in a written statement.
The Green Island grant program assists a limited number of retail fuel stations with the capital costs of converting or installing fuel storage tanks and dispensing equipment for B20 and/or E85. The maximum grant award is $45,000 per E85 or B20 fuel system ($90,000 for both fuels). Retail station owners must provide at least 20 percent of the total project costs. To learn more about this grant and to download an application, go tohttp://www.tn.gov/tdot/biofuel/application.htm.
The Tennessee Department of Agriculture is sponsoring a Ethanol Workshop in Nashville on April 28 to discuss installing ethanol infrastructure and grants available. A member from Growth Energy Market Development team will be available at the event to discuss our own grant opportunities. To learn more about the workshop or to register, contact Ed Coleman at (615) 837-5150.
Read More >>
South Dakota Ethanol Blender Pump Incentive Program Underway
On April 1, 2010 the state of South Dakota began accepting applications from retailers who wish to install ethanol blender pumps. Up to $10,000 per site is available and retailers must comply with the regulations established by the state of South Dakota. A total of $1,000,000 has been allocated for the program and applications must be received by May 30, 2010. Click here for more information.
A series of information meetings begins on April 13 in Rapid City and we encourage all South Dakota retailers to participate. For a complete list of the information meetings, click here.
Read More >>
North Dakota Ethanol Blender Pump Incentive Program Underway
The state of North Dakota is also providing grant funds of up to $5,000 per pump, limited to $40,000 per station to install blender pumps that dispense E10, E85, and any ethanol blend exceeding 20% alcohol. Click here for more information.
Applicants may also be eligible to receive an additional $2,500 grant from the North Dakota Corn Council. To review that application, click here.
Read More >>
Federal Funding Sought for Ethanol Pipeline
Terry, R-Neb., and Boswell, D-Iowa, recently introduced a bill that would provide federal loan guarantees for the massive $3.5 billion, 1,800-mile project guarantees that the project's backers say are critical to making it a reality.
Terry said the bill would extend to ethanol pipelines the same types of federal loan guarantees available to oil and gas pipeline projects.
“It's only fair,'' Terry said during a press conference with Boswell at Southwest Iowa Renewable Energy, a Bluffs ethanol producer.
Read More >>
New Study Shows E20 Reduces Tailpipe Emissions and Has No Impact on Drivability
A newly-released Rochester Institute of Technology study shows that E20 — a blend of 20-percent ethanol with gasoline — has no measurable impact on vehicle drivability or durability, and lower tailpipe emissions compared to conventional gasoline. Growth Energy, the coalition of U.S. ethanol supporters, said today that this study proves the value of moving to higher blends of ethanol in the country's fuel supply.
The study was conducted by RIT's Center of Integrated Manufacturing Studies. Using a 10-vehicle fleet owned and operated by Monroe County, N.Y., researchers fueled the vehicles — all with older gasoline engines not specifically designed to burn ethanol blends — over the accumulation of at least 100,000 miles per vehicle. Researchers found that the fleet showed an average reduction of 23 percent for carbon monoxide and a 13 percent reduction for hydrocarbon emissions, with no measurable stress on vehicle operation or mechanics.
Read More >>
Gilbarco Expands Standard Fuel Dispenser Warranty From E10 to E15
Gilbarco Veeder-Root has upgraded the warranty on its standard fuel dispensers to cover use of ethanol content up to E15. Gilbarco is the first supplier in the industry to announce this change for fuel dispensers that are under warranty in the field. These dispensers are currently Underwriters Laboratories (UL) approved for ethanol up to E10 under the UL 87 standard.
"We are pleased to lead the market with the expansion of our current warranty from E10 to E15, ensuring that our cutestomers are covered if the current E10 standard is broadened to E15," said Richard Browne, Vice-President Marketing, North America at Gilbarco Veeder-Root. "Our standard fuel dispenser models, currently UL listed to 10% ethanol, will now carry a warranty for up to 15% ethanol. This change is retroactive to Gilbarco® dispensers manufactured or commissioned in North America since April 1, 2008. Models include the Gilbarco Encore® and Legacy® series dispensers, as well as the Gasboy® Atlas® product line."
"Our customers can be confident that Gilbarco and Gasboy will honor warranty claims and otherwise support the dispensers they have recently purchased or are considering, should the blending standards change to E15," Browne said.
Gilbarco Veeder-Root is the industry's leader in alternative fuels dispensing technology with a full range of flexible fuel solutions. Earlier this month, the company obtained UL and National Conference on Weights and Measures approval for 19 Gilbarco Encore flexible fuel dispenser models for use with blends up to E25.
Read More >>
Colorado Opens First Blender Pump Facility
The opening of Colorado's first ethanol blender pump celebrated with a grand opening event from 10 a.m. to noon on Thursday, April 8. E20, E40, and E85 was offered at the Stratton Equity Coop station at 515 Lincoln Street in Burlington, Colorado.
station sold 512 gallons of the blended fuels at 99-cents a gallon to drivers of flexible fuel vehicles. "It says a lot that the first blender pump is opening in Burlington and in the heart of corn country," said Rick Palkowitsh, who farms near the community. "As a farmer, I am excited we will be the first city in Colorado offering new technology to encourage the use of renewable fuels by motorists. This blender pump will give consumers more choices as to the type of fuel they choose." Palkowitsh also chairs Colorado Corn's Market Development Action Team.
Dan Slinger, general manager of Stratton Equity Co-op, is excited to have the first blender pump in Burlington. Many of the co-op’s members grow corn. “We’re marketing about three million bushels of our members’ corn that’s going into ethanol production,” said Slinger.
This event was sponsored by Stratton Equity Coop, Little John's Equipment Company, Growth Energy and Colorado Corn. Currently, there are more than 100 E85 pumps in Colorado.
Read More >>
New Fuel Economy Standards May Benefit Ethanol
Today the Environmental Protection Agency (EPA) and the Department of Energy (DOE) signed a joint final rule that establishes greenhouse gas emission standards and corporate fuel economy standards for light duty vehicles for model years 2012-2016. This National Fuel Efficiency Policy requires passenger cars and light trucks to get an overall average of 35.5 miles per gallon (mpg) by 2016 while cars are expected to average 39 mpg and trucks will be required to get 30 mpg. According to the current administration, this measure is expected to save 1.8 billion barrels of oil over the life of the program.
However, we could actually reduce oil imports and emissions even more under this program by using ethanol.
Let me explain. The easiest way to gain the improved fuel economy is through “engine downsizing,” in other words, using smaller engines. But the new smaller engine technologies will not mean less power, like in the past. According to Ethanol Boosting Systems, their technology enables gasoline engines to “reach their full potential” by utilizing performance enhancing properties of ethanol in conjunction with advances in direct injection (DI) and turbocharging.
Here is how their system works: The EBS approach uses controlled direct ethanol injection to add a very significant vaporization-enhanced On-Demand Octane BoostTM that essentially removes the knock limit on engine performance. The elimination of the knock constraint has been proven by systematic engine dynamometer tests. This allows a small gasoline engine to provide the same or higher torque as compared to a conventional engine of much larger size.
This downsizing, the company explains, when combined with the use of a high compression ratio enables gas engines to improve efficiency, aka fuel economy, by 25-30 percent. The ethanol blend deriving the best results is E85 and in conjunction with a 3-way catalytic converter for emission control, you achieve both goals: decreased emissions and increased fuel economy. In other words, octane matters and the highest octane level you can purchase today, is E85.
Read More >>
Member Spotlight — Eddie’s Service Center
Eddie's Service Center is located on the north shore of Long Island, New York. Eddie's Service Center is a small, family owned and operated auto service center and fueling station that has been located at 743 E. Main St. in Kings Park, NY. They were past members of the NEVC and renewed their membership with Growth Energy Market Development.
The business was started in the 1970's by Edward Piotrowski Sr. His son, Eddie, joined the business while he was in high school. In 1979, Eddie Jr. became a partner in the business and continued to run the business after Ed Senior retired in 1992. His wife Jean works at the business taking care of the bookkeeping and accounting. He was later joined by his son, Eddie Jr. who worked through high school and college. He is now a NY City Fireman and continues to work in the business part time. An important member of the Eddie's team is the full time gas attendant, Haji, who has been working there for over 17 years.
Eddie's joined Growth Energy in order to become more educated on E85 fuel and to be able to be proactive in conserving energy and protecting the environment. "We feel that this is an important step for our business," noted Eddie. "Conservation and recycling are things we feel strongly about."
He went on, "We decided to offer E85 because we were undergoing tank replacement at our station. We felt it was a good time to re-evaluate the products we were offering. We had previously been selling kerosene, we decided to not continue with kerosene and introduce E85 instead. The greatest obstacle I see regarding E85 is consumer education. Many people are not aware that their vehicles can use E85. There is also the fear that something may go wrong with a vehicle because of the alternative fuel."
Eddie noted that the automobile manufacturers should educate the people who are purchasing the flex-fuel vehicles about the use and availability of the fuel, also consumer education is another challenge within the industry.
"Everyone who can use E-85 should be made aware of the environmental and cost benefits. The more it is used, the more popular it will become," he said
Many of the customers at Eddie's have been coming to the station for fuel and repairs for over 30 years and have known three generations of Eddie's.
Read More >>
New and Renewed Growth Energy Market Development Members
Dara's Fast Lane Corporate
Don Bowles Corporation
Should you wish to join Growth Energy, contact marketdevelopment@growthenergy.org.
Read More >>
New E85 and Blender Pump Stations
As of this publication, there are 2,127 E85 stations including 134 blender pumps. Below is a listing of those opened since our last publication.
| Moyer Energy | Kutztown | PA |
| Thornton's Store #155 | Louisville | KY |
| Mobil on the Run | Cuba | MO |
| Thornton's Store #386 | Champaign | IL |
| Thornton's Store #110 | Indianapolis | IN |
| Thornton's Store- #11 | Jeffersonville | IN |
| Thorton's Store-#401 | Lawrence | IN |
| Thornton's Store-#610 | Gallatin | TN |
| Thornton's Store | Louisville | KY |
| Thornton's Store | Louisville | KY |
| A & M Marathon | Taylorsville | KY |
| Zoomerz #59 | Newport | TN |
| Kum & Go | Urbandale | IA |
| Valero | Tempe | AZ |
| Stratton Equity Coop Station | Burlington | CO |
| Olive Street Station | Atlantic | IA |
| JG Service Station | Uniontown | PA |
| Pic Quik Stores | Las Cruces | NM |
If you know of an E85 station we do not have listed at http://www.e85refueling.com/, please contact us at marketdevelopment@growthenergy.org.
Read More >>
Letters to Growth Energy
It would be useful to know in every newsletter what if any federal legislation is being proposed/enacted to mandate that every gas station shall carry E85 fuel.
Thaddeus
Thaddeus J. Kochanny
Thaddeus,
VEETC, Tariff and Cellulosic Ethanol Tax Credit
Congressmen Earl Pomeroy, D-N.D., and John Shimkus. R-Ill., introduced legislation that would extend the 45 cent a gallon VEETC and 54 cent a gallon tariff for five years. Both the VEETC and the tariff are set to expire at the end of this year. The bill would also extend the $1.01 cellulosic tax credit, which is set to expire at the end of 2012 for three years and the 10-cent a gallon small-producer tax credit, which is set to expire at the end of this year, for five years. Sen. Grassley will introduce similar legislation in late April or early May.
Blender Pumps
The legislative affairs team is working to get language included in upcoming legislation that would allow gas stations to receive a tax credit for installing blender pumps. Under current law, they can only receive the tax credit for installing E85 pumps. It is unlikely this tax credit will be included in the tax extenders package because the blender pump tax credit is a multiyear tax credit.
Thanks again for your question!
Read More >>
Letters to Growth Energy
Please send comments, questions or suggestions to our Market Development Team and we will share them with our readers in our next FYI newsletter. Email questions, comments or suggestions to: marketdevelopment@growthenergy.org.
Events Calendar
To submit a Calendar item, email marketdevelopment@growthenergy.org.
