News Archive - 06/2010

U.S. Rep. Introduces Blender Pump, FFV Mandate Bills

Source: OPIS (Subscription Required)

U.S. Rep. Stephanie Herseth Sandlin (D-S.D.) introduced two bills yesterday in an effort to beef up both infrastructure and vehicles to handle higher blends of ethanol.

The bills, H.R. 5632 and 5633, are essentially splits of S. 1627, the Consumers Fuels and Vehicles Choice Act that Sens. Tom Harkin (D-Iowa) and Richard Lugar (R-Ind.) introduced in August 2009.

H.R. 5632, the Consumer Fuels Choice Act of 2010, would authorize grants of 50% of the cost of installing blender pumps and storage tanks for the sale of ethanol fuel blends. The spread of blender pumps around the country would allow a much larger group of consumers to access varying ethanol blends, Herseth Sandlin explained, noting that most of the approximately 165 stations which have blender pumps are located in the Midwest.

That bill is co-sponsored by Rep. Adrian Smith (R-Neb.).

Herseth also introduced H.R. 5633 yesterday, the Consumer Vehicle Choice Act of 2010, which mandates more flexible fuel vehicles (FFVs), which can handle higher ethanol blends. Under the bill, 50% of all cars and light-duty vehicles in model years 2011 and 2012 must be FFVs, rising to 90% in model year 2013 and years after.

"Americans need more choices at the pump, and those choices can begin with the cars and trucks they drive," said Herseth Sandlin. "By requiring that auto manufacturers produce vehicles that give Americans greater choice of fuels, we will help reduce costs for consumers and bring the nation closer to energy independence," she added.

H.R. 5633 did not have any co-sponsors.

Both bills introduced were referred to the House Energy and Commerce Committee, although it was unclear why Herseth Sandlin chose to split Harkin and Lugar's bill and introduce them as two separate provisions.

The American Coalition for Ethanol, the Renewable Fuels Association and Growth Energy all offered support for Herseth Sandlin's bills.

However, U.S. automakers are still against any FFV-related mandates.

New E85 and Blender Pump Stations

There are currently a total of 2,160 E85 stations and 160 blender pump stations

New E85 and blender pumps as of the last newsletter:

** indicates blender pump available

New and Renewed Growth Energy Market Development Members

365 Christian Realty Corp: Spirit Gas

Member Spotlight – Farmers Union Oil Company of Moorhead, MN

Farmers Union Oil Company of Moorhead, MN has recently renewed its membership with Growth Energy Market Development. The cooperative also has a retail business, Petro Serve USA. Formed in 1934, it now owns and operates 12 convenience stores in Red River Valley of North Dakota and Minnesota. They also operate a large LP Gas and Bulk Fuels business serving residential, commercial and agricultural customers. They serve approximately 4,000 customers and have a total staff of approximately 150 employees.

According to Kent Satrang, CEO and General Manager of the cooperative, their primary interest in joining Growth Energy Market Development was because they wanted to lessen their dependence on foreign oil imports and help rural communities and family farmers that they call neighbors. “We sell propane, ethanol, soy diesel and traditional petroleum products to our farm customers/owners. We hope to add value by increasing the market share of farm gown renewable fuels through our growing network of retail Petro Serve USA Convenience Stores. We are hoping to partner the abundant Bakken oil fields of western North Dakota with the productive corn fields of eastern North Dakota to create rural economic growth for everyone that works and lives in our state.”

Petro Serve USA has been an avid supporter of ethanol fuels, first offering ethanol in 1985. They have offered E85 since 1999 and more recently have begun offering E30. They initially installed the pumps and started offering blended fuel to offer consumers choices at the pump and also to allow a change in everyone’s pocket books.

Petro Serve currently has one operated and unbranded station that offers three ethanol blender pumps that dispenses regular gasoline, E10, E20, E30 and E85. The station also offers biodisel with blends of B2, B5, B10 and B20. In addition to the unbranded stations, Petro Serve also operates 6 Cenex branded stations that exclusively offer blender pumps and 5 Tesoro branded stations. The Tesoro branded stations will soon offer E10, premium, E30 and E85.

According to Satrang, the biggest obstacle Petro Serve has faced is the lack of biofuels and blender pumps in the mainstream infrastructure of fueling stations. Grand Forks, ND has about 4,000 FFV’s registered inside the city limits and no E85 or blender pump. “Blender pumps are like an ethanol pipeline that runs right from the corn field through the ethanol production plant and right to the FFV’s,” noted Satrang.

Satrang said that it is important to educate consumers about energy independence, about the environmental and economic reasons to promote American green jobs. Petro Serve uses the advertising slogan “Helping America Fuel Better.” However, the slogan serves more of a mission.

“Station owners should entice retailers by installing blender pumps and offering biofuels or it will be impossible to sell significant volumes of renewable fuels, Satrang said. “North Dakota has been an innovative leader of ethanol production, marketing and per capita volume sales over the past ten years. We are proud that our small Congressional Delegation are the lead sponsors on both the Senate and House VEETC bills. ND Governor John Hoeven recently brought farmers, station owners and oil industry to the table to collectively promote Blender Pump Legislation that passed the 2009 State Legislature with a 90% plus positive vote. Ten years ago we had 2 E85 pumps in ND. Two years ago we had 10. Today we have 125+ blender pumps in the pipeline being installed today. The goal by the end of 2010 is that North Dakota will be at about 250 blenders. I believe that within three years every pump in every large city in North Dakota will be a bio-blender pump.”

EPAC’s 20th Annual Conference Kicks Off

Ethanol Producers and Consumers (EPAC), an educational outreach non-profit organization who supports the production and use of biofuels as a renewable alternative fuel, kicked off their 20th annual conference today in Missoula, MT. “The Biofuel Journey” conference held a number of sessions focusing on ethanol, biodiesel and small grains.

“Twenty years! Who would have thought it?” noted Chairman of the EPAC board, Shirley Ball in her welcome. “Thanks for being here in 2010 to help us celebrate!”

Montana’s Director of Agriculture Ron De Yong presented opening remarks this morning followed by a video greeting from Senator Max Baucus, Senator Jon Tester and Representative Dennis Rehberg. The session that followed, The Journey Begins . . . “The OFEC (Old Fogie Ethanol Coalition) Perspective” included presentations from Shirley Ball, Larry Johnson of LLJ Consulting and Business Development, Dave Hallberg of PRIME BioSolutions, Patsy Reimche of EPAC, and Todd Sneller of the Nebraska Ethanol Board.

Sessions following included speakers on the topics of: Early Years – Early Support – The Industry Grows, Air Quality, Biodiesel, and Small Grains.

Growth Energy Market Development Manager Michelle Kautz also spoke at the event on mid to high level blend opportunities. “EPAC has been a value to the industry as an informative resource in the industry. We look forward to working with the group more in the future.”

General Motors Statement on Flex-Fuel Vehicle Pledge

Source: GM

DETROIT – General Motors is a leader in the production of flex-fuel vehicles and has increased annual production of flex-fuel vehicles to more than 850,000 annually, an increase of 55 percent from 2006 volumes.

More than 5 million of the 7.5 million flex-fuel vehicles on the road in North America are GM cars and trucks. GM offers 17 models in its 2010 lineup with flex-fuel capability, allowing them to run on E85 ethanol, gasoline, or any combination of the two. This is more than any other manufacturer.

With the introduction of the 2011 Buick Regal this summer, GM will be the first manufacturer to offer fuel-fuel capability on a four-cylinder direct injection turbocharged engine. GM is strongly committed to biofuels and has pledged to make more than half our vehicle production flex-fuel capable by 2012.

“We continue to believe that biofuels are the best near-term solution to reduce dependence on petroleum, expand our nation’s energy portfolio and reduce the carbon footprint of driving,” said Mike Robinson, GM vice president, environment, energy and safety policy. “We anticipate more than 8.5 million flex-fuel vehicles on the road by 2012, exceeding our pledge made in 2006 and the potential to reduce the CO2 footprint of driving more than 6.8 million tons per year.”

GM is a leader in research and development of advanced biofuels and has invested in two companies, Coskata Inc. and Mascoma Corp. that produce ethanol from non-food sources.

GM’s lineup for 2011 includes:
Chevrolet Equinox
GMC Terrain
Buick Regal
Buick Lucerne
Chevrolet Impala
Chevrolet Malibu
Chevrolet HHR
Chevrolet Tahoe
Chevrolet Suburban
Chevrolet Avalanche
Chevrolet Silverado 1500
Chevrolet Caprice – Patrol/Detective
Chevrolet Impala – Patrol/Undercover
Chevrolet Tahoe – Patrol/Special Service
Chevrolet Express
GMC Savana
GMC Yukon/Denali/XL/Denali XL
GMC Sierra 1500
Cadillac Escalade
Cadillac EXT

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Propel Fuels, Growth Energy Offer Free Biodiesel Fuel, Ethanol

Source: Sacramento Business Journal

Ethanol and biodiesel retailer Propel Fuels and Growth Energy aim to get more Sacramento-area drivers to use homegrown renewable fuels with a promotion announced Monday.

Through July 4, consumers can obtain a pre-paid fuel card for five free gallons of E-85, an ethanol blend, or biodiesel, to be used any time at one of Propel’s five area stations. To register for the card, visit the Propel Fuels site. Once registered, Propel will mail free fuel cards to customers while supplies last.

“There are more than 40,000 flex fuel drivers in the Sacramento area and we want to make sure they know that homegrown fuels, like Propel’s E85 and biodiesel, are locally available alternatives to the foreign oil used in gasoline,” Growth Energy chief executive officer Tom Buis said in a news release. “With our country’s own Independence Day right around the corner, we want to encourage flex fuel vehicle owners to also demonstrate their independence from foreign oil at the pump.”

“Drivers now have a choice, they can break free from imported oil,” Propel Fuels CEO Matt Horton said. “Together with Growth Energy, we are increasing awareness and use of alternative fuels which will create jobs, improve our environment and decreasing our nation’s dependence on oil.”

Propel Fuels installed E-85 and B-5 biodiesel pumps at five gas stations in Sacramento, Rocklin, Citrus Heights and Elk Grove. It also has biofuels pumps at six stations in Washington state, and it plans to put hundreds more in California.

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Herseth Sandlin, Thune slam EPA on E15

Source: The Daily Republic

Two South Dakota congressional delegates from opposite parties are unhappy — to say the least — with a delay by the Environmental Protection Agency in its consideration of increasing the maximum ethanol blend in gasoline from 10 to 15 percent.

“We’re very frustrated, and we’re making as much noise as we can about it,” said Sen. John Thune, R-S.D., on a Thursday conference call with reporters. “We just need to get this done.”

The EPA announced last week that it will wait until this fall to decide whether standard vehicle engines can handle higher concentrations of ethanol in gasoline, although the EPA said initial tests “look good.” The current maximum blend is often referred to as “E10.” It’s the maximum for vehicles that are not specially equipped to handle E85.

A decision is expected to come after the Energy Department completes testing of the higher blend on vehicles built after 2007.

The delay doesn’t sit well with Rep. Stephanie Herseth Sandlin, D-S.D., who was clearly angered with the delay Thursday.

“This delay isn’t just disappointing, it’s inexcusable,” she said on her conference call with reporters.

Herseth Sandlin said approval of the waiver for a higher blend would create more than 136,000 new jobs in the United States, reduce dependence on foreign oil by 7 billion gallons, reduce greenhouse gas emissions by an amount equivalent to removing 10.5 million cars from the road, and revitalize rural communities.

“I support all of these steps,” she said. “That’s why I’m going to be asking a lot of questions to the Department of Energy directly.”

Thune said the issue has been “studied to death” and blamed special-interest groups and members of the current administration for the decision’s delay.

“The energy secretary (Steven Chu) is a critic of corn-based ethanol, and he would have a lot, obviously, to say about whether or not this gets approved,” Thune said. “There’s just way too much political resistance to making the necessary changes.”

Herseth Sandlin said “pressures” were applied to DOE employees by the automobile and oil industries.

“It is a well worn-out tactic in Washington to call out for more studies when you want inaction,” she said. “I believe that same kind of pressure may be coming to bear.”

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Ethanol Dispensers Receive Final Safety Certification

Source: Growth Energy

WASHINGTON, DC – Growth Energy today announced that Underwriters Laboratory (UL) has simultaneously issued certifications to both the Gilbarco Veeder-Root Encore® E85 fueling dispenser and the Dresser Wayne Ovation ®Eco fueling E85 dispenser. These fuel pumps are now completely certified and approved for dispensing any range of fuel ethanol from E0 through E85.

“The final UL certification of both the Gilbarco and Dresser Wayne fuel dispensers represents a significant step in expanding our national effort to provide higher level blends of ethanol directly to consumers,” said Growth Energy CEO, Tom Buis. “Now that these two outstanding domestically based pump manufacturers have received all the final approvals and certifications, we anticipate a more rapid expansion in the number of higher blend fueling facilities across the nation.”

“This UL approval will have an extremely positive impact on our customers, motorists and the entire alternative fuels industry. Consumers are increasingly demanding renewable fuel options for their vehicles, and car manufacturers are steadily increasing the number of vehicle models that use eco-friendly fuels. Now, fuel retailers dispensing E85 with Dresser Wayne Ovation Eco Fuel E85 dispensers can meet consumer demands and also be in compliance with industry standards. This UL approval helps Dresser Wayne further its commitment to the development of green refueling technologies,” said Scott Negley, Director of Alternative Energy Products for Dresser Wayne. http://www.dresserwayne.com/index.cfm/go/content-detail/dresserpage/Press-Releases/

“We are pleased to be leading the development of the infrastructure required for alternative fuels, including increased use of ethanol,” said Chad Johnson, marketing manager for Encore dispensers at Gilbarco Veeder-Root. “The Encore S Flexible Fuel dispensers for E85 provide our customers with the same innovative, money-making features and durability they enjoy with the gasoline models.” http://www.gilbarco.com/page/Press_Archives

Regarding blender pumps, Buis noted, “Growth Energy salutes both manufacturers for their persistence in addressing the new and robust standards which have been established for certification of E85 dispensing equipment and we look forward to the completion of the process that will allow the certification of blender pumps in the near future.”

The impact of the approval enables the industry to build much-needed infrastructure to support renewable fuels and allows retailers to install ethanol equipment that is legal to operate. It also knocks down a significant barrier that impeded the growth of alternative fuels from becoming more of a mainstream product offering in the marketplace.

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Corn Ethanol Goes From ‘Energy Sink’ To ‘substantial Net Energy Gain’ — USDA

Source: E&E (subscription required)

Katherine Ling, E&E reporter

Corn ethanol supplies twice the amount of energy that is required to make it, the Agriculture Department said in a report released today.

For every British thermal unit (Btu) of energy required to make corn ethanol, 2.3 Btu is produced, the report says. The ratio is higher, it adds, if companies use biomass energy in ethanol production.

"Ethanol has made the transition from an energy sink, to a moderate net energy gain in the 1990s, to a substantial net energy gain in the present," the report says. "And there are still prospects for improvement."

It takes less corn to make an equal amount of ethanol, the report says. Greater use of starch in corn and higher corn crop yields per acre of land have helped ethanol yields increase by 10 percent in the past two decades, the report says.

USDA's Office of Energy Policy and New Uses gathered data for the report from a survey of corn growers in 2005 and ethanol production plants in fall 2008 and winter 2009.

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ANALYSIS-Higher US Ethanol Blend May Revive Auto Industry

Source: Reuters

By Roberto Samora and Reese Ewing

SAO PAULO, June 21 (Reuters) - U.S. automakers oppose raising the blend of ethanol in gasoline from the current 10 percent, saying cars won't run as well on higher blends, but Brazil's experience shows their arguments are weak.

Brazil, a model in the biofuels industry, began its ethanol program in 1975 after the world oil crisis sent its economy into a nose dive. The country was importing about 80 percent of its crude at the time.

It now mandates 20 to 25 percent ethanol in all gasoline and its auto industry adapted engines to the more corrosive fuel in 1979. Ethanol now holds equal market share as gasoline and sales of cars that run on it are booming.

The U.S. Environmental Protection Agency and Energy Department are studying the potential impact of an increase of ethanol in gasoline to 15 percent. 

U.S. ethanol producers say this would expand demand and improve the health of the industry, suffering from a glut of the biofuel typically made from corn in the United States.

But the U.S. Alliance of Automobile Manufacturers has lobbied against raising the blend, saying it would affect vehicle emissions, performance and durability.

Emissions are complicated as there are many gasses and particulates produced to varying degrees depending on the blend and the quality of gasoline and type of ethanol. Some are worse than others for humans and the environment.

But as for performance and durability, Brazilian engineers say local cars that run on E20-E25 gasoline are in no way inferior to their North American counterparts.

"From the technical point of view, this could be done without any difficulty (in the United States)," former Brazil Chief Executive for Ford (F.N) and current Director of the Center for Automotive Studies Luiz Carlos Mello said.

He noted that U.S. automakers were instrumental in designing the 100 percent ethanol car that started rolling off Brazilian factory floors three decades ago.

"But it's not an easy decision, for if it were just a matter of economics, they would have already made it," he said, adding that there were broad political implications with the U.S. economy, which is heavily geared toward petroleum.

For years, some car manufacturers have been producing parts and vehicles in the United States with more corrosion-resistant metal alloys, such as stainless steel to handle higher blends of ethanol.

"I'd say that some manufacturers already can handle 15 percent ethanol, so I think they would have to do very little," said Fernando Barata, an engineer who was instrumental in the development of Brazil's flex-fuel car that runs on any mixture of ethanol or gasoline.

But the U.S. industry overall is likely to have to invest in the reworking their production lines, parts and testing.

"It would be impossible to speak of costs, beyond a true shot in the dark, but it could be something more or less significant," Heymann Leite, an engineering professor at various universities in Brazil.

The necessary part design and technologies for E15, however, are already being used in Brazil by the very same automakers operating in the United States, such as General Motors [GM.UL], Fiat (FIA.MI), Volkswagen (VOWG.DE) and Ford.

Mello added that the U.S. auto industry's additional costs of modifying their production lines for higher blends would be diluted by the massive scale of U.S. production.

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Blender Pump Program Boosts South Dakota to Lead Nation

Source: The Madison Leader

The Flandreau lawmaker who sponsored ethanol blender pump legislation during the 2010 session believes the state's $1 million grant program will put South Dakota in the lead among the entire nation.

Mitch Fargen, D-Dist. 8, said he and other ethanol supporters have stayed busy since last winter's legislative session ended trying to coordinate efforts to have fuel stations install more blender pumps in the state.

"We're trying to maximize the money that was put into the program," Fargen said. "Our organizations have done our best to educate people -- to sit down with the operators of gasoline stations and explain the benefits that blender pumps offer."

Fargen noted that gas stations in Watertown and Britton were the first two in the nation to operate blender pumps.

"This grant program places us back into the lead for the entire country," he said.

Blender pumps allow motorists to select the amount of ethanol in their fuel -- from 10 percent up to 20, 30 and 85 percent ethanol.

The $1 million program, which was signed into law by Gov. Mike Rounds, offers grants of up to $10,000 per pump to help retail fuel dealers defray the cost of installing the equipment. The new pumps can cost up to $25,000 each.

Lt. Gov. Dennis Daugaard announced on Wednesday that the program will help install up to 100 blender pumps at 49 more fuel stations in 40 South Dakota communities. Daugaard said the additions will put the state at the front of the pack for number of blender pumps.

"As of June 1, there were 157 service stations with blender pumps in 14 states," Daugaard said. "Minnesota was in the lead with 49, and South Dakota had 42 of them."

Howard, Flandreau and Arlington are on the list of communities that will have blender pumps installed through the grant program.

Typically, fuel stations operating blender pumps use two underground tanks -- one for unleaded gasoline and another for E85 -- which dispense the E10, E20, E30 and other blends.

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Growth Energy to Participate in KC Clean Cities Ethanol Workshop

The Kansas City Regional Clean Cities will be hosting a workshop titled Exploring Ethanol on Friday, July 9. The workshop will be held at the Johnson County Community College at 12345 College Blvd. in Overland Park, Kansas.

Best Practices on ethanol: distribution, handling and use, vehicles and fleet success stories, incentives and resources will be discussed during the workshop. Speakers expected to attend are:

Rich Cregar, Wake Tech Community College
Kelly Gilbert, Kansas City Regional Clean Cities
Cindy Dixon, State of Missouri 
Don Gard, US General Services, Region VI 
Bryan Fox, KCP&L 
Scott Zaremba, Zarco 66, Inc. 
Michelle Kautz, Growth Energy Market Development

Growth Energy will be discussing funding opportunities for E85 and blender pump infrastructure through their and MO Corn Growers Blender Pump Program.

RSVP prior to July 1 by emailing Sierra Mathis at sierra@kcenergy.org.  

Member Spotlight – Deuel County Cenex

Deuel County Cenex of Toronto, South Daktoa recently renewed its membership with Growth Energy. Formed in 1936, the farm supply cooperative has five locations in three different towns. Petroleum, agronomy, feed and grain are their main products sold.

According to the General Manager Harry Mewherter, Deuel County Cenex’s primary interest in joining Growth Energy Market Development was to develop and sell the products farmers are growing in the United States. “We need to be more self-sufficient on energy. I believe Growth Energy Market Development will achieve this goal,” noted Mewherter.

Deuel County Cenex decided to initially install blender pumps because their customers were asking for E85. They wanted to offer more choice for ethanol blends, so instead of just offering E85, they decided to offer consumers exactly what they were looking for -- more choices. Deuel County Cenex was among the first blender pumps offered in the state of South Dakota .

The group voiced their concerns on the challenges the ethanol industry has is consumer education. They noted that the public needs to be more educated on the value of burning ethanol and the environmental benefits. “We need more refueling sites that carry E85 and mid level blends in more states,” said Mewherter.

Mewherter recognizes the importance of maintaining the connections between fuel providers, farmers, and the ethanol industry, “We want to support the farmers who are growing this product. We are located relatively close to an ethanol plant, so blender pumps are a great way to support our local communities. Our customers were looking for more choices and now that they have them, they appreciate those choices.”

Deuel County Cenex has two blender pump fueling locations in South Dakota. The Cenex located at 375 Main Avenue in Toronto offers blends of E10, E15, E20, E30 E40 and E85. The blender pump in Clear Lake located at 222 3rd Ave S offers blends of E 10, E20, E30, E40 and E85.

New E85 and Blender Pump Stations

There are currently 2,153 total E85 locations and 157 blender pumps.
Below are the new E85 and blender pumps as of the last newsletter.

New and Renewed Growth Energy Market Development Members

ROC One Stop – Russell Oil Company

Jeff Broin Wins High Octane Award at FEW

Source: POET

POET CEO Jeff Broin received the High Octane Award from BBI International in St. Louis at the Fuel Ethanol Workshop (FEW) on June 15 for his role in helping develop the ethanol industry into a significant force in the national transportation fuel market. The award recognizes a person whose passion and unstoppable pursuits have significantly benefited the ethanol industry. Broin is just that.

Through vision, leadership and a strong commitment to the industry, POET CEO and President Jeff Broin took one ethanol production facility in Scotland, S.D. to a billion-gallon enterprise that includes 21 ethanol plants in operation by POET and six additional plants currently under construction or in the midst of an expansion. POET, located in Sioux Falls, S.D., became the top producer of ethanol in the world with the completion of POET Biorefining - Portland, Ind. in September, 2007. POET now has 26 plants in seven states and produces more than 1.6 billion gallons of ethanol annually. POET also is one of the founders of Growth Energy.

“I’m humbled and honored to receive this award,” Broin noted during the presentation of the award. “Although this award was given to me, I really need to give the credit … to the team at POET who make me look good every day,” Broin said.

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Letter to the White House from Growth Energy

Source: Growth Energy

In response to recent developments related to Growth Energy’s Green Jobs Waiver, Growth Energy CEO Tom Buis wrote the following letter to President Obama. View a PDF version.

June 17, 2010

President Barack H. Obama
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500

Dear Mr. President:

I am writing on behalf of Growth Energy, which represents 58 ethanol plant members, 38 associated industry members and more than 18,000 individuals to express our disappointment that the federal agencies involved in making a decision on Growth Energy’s Green Jobs Waiver have delayed action yet again on allowing an increase in the amount of ethanol that can be blended with gasoline. As you have said yourself, Mr. President, accelerating the production of domestic ethanol would create U.S. jobs, help clean our environment, and strengthen our national security. Every day we delay the decision on the Green Jobs Waiver for E15 is another day we continue our addiction to foreign oil.

Mr. President, in March of 2009 Growth Energy filed a waiver with the U.S. Environmental Protection Agency to raise the amount of ethanol that can be blended with gasoline from 10 percent to 15 percent. Accompanying our waiver was a significant body of data which we believe demonstrates that raising the blend to 15 percent ethanol meets all the requirements of the Clean Air Act.

The waiver process requires a decision on a waiver within 270 days. However, instead of making a decision, EPA informed us on Dec. 1, 2009 that they were delaying the decision until the U.S. Department of Energy completed their own studies on the impact of moving from E10 to E15. EPA made a promise in writing that the decision would be made by the middle of this year. We are hearing that the decision on the waiver will again be delayed because the DOE tests would not be completed until this fall.

As you would expect, we find this further delay unacceptable. The fact that the federal agencies involved here cannot meet their own deadlines – on a decision that means so much to our nation – reinforces a public perception that government bureaucracy does not work in the best interests of the public. Approval of our waiver would create more than 136,000 new jobs in the U.S., reduce our dependence on foreign oil by 7 billion gallons, reduce greenhouse gas emissions equivalent to removing 10.5 million cars from the road, and revitalize our rural communities.

We urge you to direct the federal agencies involved in this waiver to expedite the testing process, add extra staff, additional shifts, or whatever other steps necessary to accelerate the completion of the testing. Again, the waiver decision should have been made in December 2009; when that deadline was not met, we were promised a decision in mid June of this year. Now we are again being told to wait for testing that we believe was unnecessary in the first place to make a decision.

Again, we recognize your leadership and support for renewable fuels and for your efforts to reduce our nation’s addiction to foreign oil. We want to help. The U.S. ethanol industry currently provides almost 10 percent of our nation’s blended gasoline use, but we can do much more if the barriers that have been erected by the federal government are removed.

We certainly understand that there many vested interests that do not share our belief that we should reduce our dependence on foreign oil. One well-worn tactic for delaying action in Washington, D.C., is to continually study or demand further testing. But as the data submitted with our waiver shows, the science already proves the benefits of ethanol as a transportation fuel; the demands for testing beyond the requirements of the Clean Air Act will do nothing to meet our nation’s objective of energy independence, and in fact will also delay the development of cellulosic ethanol. We also stand with you in pursuing energy legislation in Congress to create a national energy policy that creates jobs in the United States, improves our environment and strengthens our national security by reducing our reliance on foreign oil. As you have said yourself, “Inaction is unacceptable.”

We believe that can be accomplished with legislation requiring automakers to produce flex fuel vehicles and retailers to install blender pumps nationwide so that we create an open market that will allow consumers to choose their fuel at the pump – whether that be domestic ethanol or gas refined from foreign oil. We ask you for your support of that legislation to expand the infrastructure for delivering domestic ethanol to consumers through the installation of 200,000 blender pumps and the mandate that all automobiles sold in America be flex fuel vehicles.

With fossil fuels getting dirtier, costlier and riskier to extract, as we are witnessing with the epic catastrophe in the Gulf of Mexico, now is the time we should move on expanding the production and consumption of clean, renewable fuels like ethanol. As you have said yourself, if Brazil can become energy independent with the use of domestic renewable fuels such as ethanol, so can the United States. The obstacles that we face are our own federal regulations limiting the amount of ethanol that can be blended, and the lack of a coherent national energy policy that would remove the infrastructure and market barriers that prevent consumers from having a choice of fuels. We urge you to move quickly and end any further delay on E15, as well as support our effort to open the transportation fuels market – with FFVs and blender pumps – to give consumers more choice at the pump.

Mr. President, we look forward to working with you as we take immediate action to move this country forward on developing clean, renewable fuels.

Sincerely,

Tom Buis
CEO, Growth Energy

cc: Agriculture Secretary Tom Vilsack
Energy Secretary Stephen Chu
EPA Administrator Lisa Jackson

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EPA Decision on Ethanol Blend Put Off Until Fall

Source: AP

By MARY CLARE JALONICK and MATTHEW DALY (AP)

WASHINGTON — The Environmental Protection Agency says it will wait until this fall to decide whether car engines can handle higher concentrations of ethanol in gasoline.

The agency had been expected to decide by this month whether to increase the maximum blend from 10 to 15 percent.

The EPA said Thursday that initial tests "look good" and should be completed by the end of September. A decision will come after the Energy Department completes the testing of the higher blend on vehicles built after 2007.

The ethanol industry has maintained that there is sufficient evidence to show that a 15 percent ethanol blend in motor fuel will not harm the performance of car engines. But the refining industry, small engine manufacturers and some environmental groups have argued against an increase.

The EPA has indicated in the past that they will raise the blend, saying a congressional mandate for increased ethanol use can't be achieved without allowing higher blends of the renewable fuel, most of which comes from corn. Congress has required refiners to blend 12.9 billion gallons of biofuels in 2010, of which 12 billion gallons would be ethanol. The mandate soars to 36 billion gallons, mostly ethanol, by 2022.

Ethanol groups immediately expressed disappointment with the delay. Tom Buis, president of Growth Energy, the ethanol group that filed the original petition for the increase, used the oil spill in the Gulf of Mexico as an argument in a letter to President Barack Obama on Thursday.

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Growth Energy Pushes For Infrastructure Improvements

Source: BrownField

President Obama is using the Gulf oil spill to renew his push for clean energy investments. Growth Energy CEO Tom Buis was on Capitol Hill this week outlining the ethanol industry’s priorities in that area, which include improvements to the renewable fuels infrastructure.

“We want to see mandatory flex-fuel vehicle production in this country. We want to see blender pumps installed around the country,” Buis says, “and that gives the power to the consumers and you don’t have to worry about whether or not they can utilize it in their vehicles in the future, if they’re all flex-fuel vehicles.”

Growth Energy is also pushing for legislation that would provide federal loan guarantees to build an ethanol pipeline from the Midwest to the Northeast. “That will lower our carbon footprint by moving ethanol by pipeline, as opposed to using fossil fuel-powered vehicles to move it—and also lowers the cost to the consumers,” Buis says.

Buis says extension of the ethanol blender’s tax credit and the secondary tariff on ethanol is also essential. And he eagerly awaits the EPA’s decision on a higher ethanol blend rate.

“We’re up against the blend wall—and everyone knew it. That’s why we filed the waiver a year ago last winter,” says Buis. “We don’t have a problem producing it. We just have these artificial barriers that keep us from producing and contributing more to our nation’s energy needs.”

Speculation is that the EPA will compromise with an E12 or E13 blend, but Buis still holds out hope that they will make the jump for E10 to E15.

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Lifecycle Analysis Shows POET Cellulosic Ethanol Cuts Greenhouse Gas Emissions 111% Over Gasoline

Source: BioFuels Journal

Sioux Falls, SD — Ethanol produced by Project LIBERTY, POET's first planned commercial cellulosic ethanol plant, will reduce carbon emissions by 111 percent over gasoline, an independent lifecycle analysis shows.

This means POET's cellulosic ethanol actually has negative emissions; it will offset more greenhouse gas emissions than it produces.

"Not only is cellulosic ethanol a clean and safe alternative fuel, in cases such as Project LIBERTY, it can literally reverse some of the effects of our nation's dependence on fossil energy such as oil," POET CEO Jeff Broinsaid.

"By expanding the number of sources for ethanol production, the entire nation can contribute to helping our nation's economy, security and environment through alternative fuel production."

Broin presented the results to reporters today at the Fuel Ethanol Workshop & Expo in St. Louis, MO.

A lifecycle analysis tracks the emissions of ethanol production from "field to tank."

It includes emissions from planting and harvest, feedstock transportation, conversion to ethanol, waste products, co-products and transportation of the ethanol.

It also includes Environmental Protection Agency calculations for changes in land use and effects on agriculture inputs.

The analysis, compiled by Air Improvement Resource, Inc. out of Novi, MI, highlights a number of characteristics of POET's process that lead to this large emissions reduction.

• Project LIBERTY produces ethanol from agriculture waste. Because it uses a waste product from an existing crop, there are no additional inputs for planting and growing the feedstock.
• The disputed theory of Indirect Land Use Change, which creates an emissions penalty for grain-based ethanol, does not have any penalty associated with POET's cellulosic ethanol.
• The waste stream from POET's process is fed into two anaerobic digesters to create biogas. Enough biogas is produced to completely power both Project LIBERTY and the adjacent grain-based ethanol plant. The natural gas that is displaced in this process is credited to the cellulosic ethanol plant.

"The production of biogas as a co-product is an exciting aspect of this process," Broin said.

"We will use renewable energy to produce renewable energy."

The analysis found that all the inputs into Project LIBERTY will emit 41.8 grams of carbon dioxide equivalent units per megajoule of energy produced.

The biogas exported as a co-product will offset 49.8 gCO2eq/MJ. EPA estimates for land use and agriculture changes offset an additional 1.7 gCO2eq/MJ, bringing Project LIBERTY's total emissions to -9.7 gCO2eq/MJ.

EPA's standard for gasoline emissions is 92.9 gCO2eq/MJ.

The Project LIBERTY lifecycle analysis was conducted using the most current design elements available.

However, POET will continue to learn from laboratory work and its pilot cellulosic ethanol plant currently operating in Scotland, S.D. As changes occur, the analysis will be updated.

For more information, call 605-965-2200.

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Wesley Clark: The Lesson Is, It’s Time to Diversify

Source: Tallahassee Democrat

The world is holding its breath, waiting for a resolution to an ecological disaster now seen as the worst of our time. We can only hope BP will soon find a solution, even as thousands work to protect fragile beaches and wetlands, and Gulf Coast residents begin to confront the devastating economic fallout.

In a speech the day before he visited the region, President Obama emphasized one key lesson from the terrible situation: "More than anything else, this economic and environmental tragedy — and it's a tragedy — underscores the urgent need for this nation to develop clean, renewable sources of energy."

Indeed, the tragedy is a forceful reminder of the cost of our excessive dependence on petroleum and compels us to consider alternatives. With world oil supplies increasingly hard to find, expensive to develop and requiring greater risk to exploit, this accident won't be the last. Even without accidents, the "fixed costs" of our petroleum addiction are enormous and, over time, untenable: up to $500 billion each year sent to oil-producing nations, some of which are opposed to America's best interests; the "oil curse" of petro-dollars fueling corruption in developing nations; and hundreds of millions of tons of carbon released each year into the atmosphere that contribute to climate change.

Following the disastrous Exxon Valdez spill in Alaska in 1989, we did not have a viable alternative to oil. The ethanol industry was in its infancy. Electric automobiles were decades away. Demand for change quieted because the price of oil actually declined from levels reached during the earlier oil-shock years.

Today, much has changed. Demand for oil has increased dramatically, as India and China clamor for their right to live as energy-rich as we Americans. World oil production has risen by 40 percent, and price has jumped from around $18 to around $80 per barrel. Electric cars are again in vogue. But even though significant investments are being made in battery technology, and optimists believe we could see millions of electric cars within the next two decades, in truth, the vast majority of all cars is expected to be liquid-fueled for the foreseeable future — and that would seem to mean an unceasing demand for oil.

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Blender Pumps Could Put SD In Ethanol Lead

Source: KELOLAND Television

By Erica Johnson

YANKTON, SD — South Dakota could soon lead the way in ethanol distribution in the country. That's thanks to stimulus funds that would put more blender pumps at gas stations across South Dakota.

The next time you make a trip to the pumps you might notice you have more choices. That's because more blender pumps are expected to be put in at 40 communities across the state thanks to a federal grant.

The $1 million is part of the state's stimulus money. Terry Stucky owns Double T Truck Stop and applied for a grant. Today, his station has one of 49 blender pumps planned across the state.

“I had a lot of people asking for E-85 and there are some people who use 30 which is 30 percent ethanol. I had a big call for that. That's what stirred my interest,” Stucky said.

Those blender pumps will allow drivers to fill up with the traditional E-10 mixture or E-20, E-30 and E-85. Most of these mixtures are safe with cars and compatible with flex fuel vehicles. And for customers like Callie Aune, the options will increase ethanol production which will help drivers help the state.  

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Growth Energy Partners With Thorntons To Establish 20 New E85 Stations In Five States

Jefferson City, MO -- Growth Energy has joined forces with Thorntons Inc., a leading, independent gasoline/convenience-chain retailer, to establish 20 new E85 stations throughout five states. Growth Energy will provide funds to support the installation of new equipment to dispense high level blends of ethanol. Thorntons has become a part of Growth Energy’s 2010 E85 and Blender Pump Program, where funds are provided to retailers to establish mid and high level blend infrastructure throughout the country. Over 60 new mid and high level blend sites have been provided financial support in 2010.

“It’s exciting to know that Thorntons, one of the largest gasoline retailers, is working to establish such a large network of E85 fueling stations,” said CEO of Growth Energy, Tom Buis. “We are delighted to collaborate with them and commend Thorntons on their leadership of promoting this clean burning, alternative fuel.”

 “We are very excited about the expansion of E85 fuel in our stores,” said Matt Thornton, Chief Executive Officer of Thorntons. “We support the use of ethanol, wherever it is economically available.”

E85 locations working to be established within the next few months at Thorntons Convenience Stores in the following areas:

Island Lake, IL
Volo, IL
Lakemoor, IL
Third Lake, IL
Woodale, IL
Terre Haute, IN
Evansville, IN
Greenwood, IN
Lexington, KY
2 in Louisville, KY
Galloway, OH
2 in Columbus, OH
Canal Winchester, OH
Cincinatti, OH
Hamilton, OH
Cincinatti, OH
Fairefield, OH
Lebanon, TN

“We are pleased to partner with Growth Energy on the expansion and promotion, and appreciate their financial support of the expansion of our E85 fuel offerings,” noted Thornton.Growth Energy continues to encourage fuel retailers which have an interest in establishing mid and high level blend ethanol dispensing facilities to contact our offices to determine eligibility for support.

For more information on the 2010 Growth Energy E85 and Blender Pump Program, contact the Growth Energy Market Development office at 1-877-485-8595 or at scourter@growthenergy.org.

Growth Energy: New Energy-Climate Bill Includes Initiatives to Help Break Our Addiction to Oil

Source: Growth Energy

A new energy bill that has been introduced by Sen. Richard Lugar (R-Ind.) will help our nation realize its energy independence because it includes stronger vehicle fuel standards and a mandate for Flex Fuel Vehicles, according to Growth Energy, the coalition of U.S. ethanol supporters.

“An energy bill that supports the expanded production and use of Flex Fuel Vehicles is the only way that our nation will be able to kick our addiction to oil and decrease the impact it has on our economy, our environment and our national security,” said Growth Energy CEO Tom Buis.

Today, almost eight million vehicles on U.S. highways are flexible fuel vehicles, out of over 246 million vehicles on the road. The Lugar bill requires that up to 90 percent of all new vehicles sold in the United States be flex-fuel capable. This commitment will help ensure that we meet Congress’ goal of 36 billion gallons of biofuel production by 2022 as enacted in the 2007 Energy Independence and Security Act, Buis said.

“If we are truly going to meet our nation’s renewable fuel goals and substantially reduce our dependence on foreign oil, we need to invest in policies like these that will bring our entire vehicle fleet up to modern engine standards, and open the market to more ethanol.

“We commend Senator Lugar for introducing this legislation and we will continue to work with congress to pass a bill that includes an investment in clean, renewable transportation fuels to make our nation more energy independent and strengthen our economic security,” Buis added.

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Growth Energy, Veyance Announce UL Approval Of E85 Compatible Hose

Source: Growth Energy

Certified Ethanol Blender Pumps Available Soon

Growth Energy, the nation’s primary advocate of the use of ethanol, and Veyance Technologies, a manufacturer of liquid fuel dispenser hoses, today announced Underwriters Laboratory (UL) certification of the Veyance Flexsteel® Futura liquid fuel dispenser hose for use with mid- and high-level blends of ethanol.

This is the last equipment part requiring UL certification for mid- and high-level blend dispensing equipment, following a 2006 decision by UL to rescind previous certification and revise equipment standards for this type of dispenser. This announcement concludes the final series of UL testing for the “hanging hardware” which is attached to the basic fuel dispenser.

Growth Energy had partnered with Veyance and provided financial support necessary to accelerate the submission of the hose for UL testing and, ultimately, certification.

“We have been pleased to work with Veyance on this project in order to facilitate the testing and certification of the hose needed to dispense mid- and high-level blends of ethanol in blender pumps,” said Growth Energy CEO, Tom Buis. “Veyance’s certification on their liquid fuel hose represents a significant step in acquiring the complete certification of a mid- and high-level blend dispenser.”

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Farmers union: Ethanol blends should be labeled accurately at the pump

Source: Alexandria Echo Press

The Federal Trade Commission (FTC) is working on a label for ethanol blends at the pump. Minnesota Farmers Union is urging the FTC to use labels that are accurate, descriptive, and not harmful to the ethanol blends so that consumers who drive flex-fuel vehicles can have a real, home-grown, domestic fuel choice.

“Currently, the ethanol industry replaces 364 million barrels of imported oil each and every year,” said Doug Peterson, Minnesota Farmers Union President. “A major study by the Windmill Group identifies 645,000 jobs created by ethanol, and $92 billion to our country’s Gross Domestic Product.”

A study by Yale University’s Journal of Industrial Ecology states that grain ethanol has 59 percent fewer Greenhouse Gas Emissions when compared to conventional gasoline, and the use of ethanol reduces carbon emissions by 16.5 million tons of greenhouse gas emissions. Cellulosic ethanol, the second generation of renewable fuels, is 90 percent cleaner than gasoline, and with the current feed stock of biomass, there is enough biomass in the country to produce 85 billion gallons of cellulosic ethanol annually!

“The fact is - ethanol works – it makes us less dependent on foreign oil, contributes to this country’s economy and is better for the environment, so lets help consumers choose cleaner, home-grown energy by putting a factual label on ethanol blend pumps,” said Peterson.

Minnesota Farmers Union (www.mfu.org) is a nonprofit membership-based organization working to protect and enhance the economic interests and quality of life of family farmers and ranchers, as well as rural communities.

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Member Spotlight – Farmers Union Oil

Farmers Union Oil of Portland, ND recently renewed its membership with Growth Energy. Formed in 1930, the locally owned cooperative has been providing bulk fuel, propane, and farm supply services to Portland and neighboring communities for the past eighty years. Besides these services, the Portland Farmers Union Oil also maintains a 24-hour convenience store in neighboring Mayville and cardtrol sites in Galesburg and Clifford.

According to the manager of Farmers Union Oil of Portland, Ken Kornkven, their primary interest in joining Growth Energy Market Development was to continue supporting ethanol. “We’ve been avid supporters of ethanol since the 70’s and we have been selling ethanol enhanced gas for over 40 years. About five years ago, we put in E85 and a year and a half ago decided to offer more choices at the pump, by installing blenders that offer E20, E30, E40 and E85.”

As part of a Midwestern cooperative, Kornkven recognizes the importance of maintaining the connections between fuel providers, farmers, and the ethanol industry, “We want to support the organizations that support us.” They were the second in the state to install blender pumps.

As more flexible fuel vehicles appeared on the road, Farmers Union of Portland wanted to support local farmers and continue their support of ethanol. They decided to switch over to blender pumps and put in a product that the farmers were growing.

The transition to Ethanol blended product has not been an easy one over the years as Kornkven can attest. “Unfortunately, there are a few obstacles, challenging the growth of alternative fuels and E85. There is a loss in mileage with E85. However, when we installed the blender pumps we were pleasantly surprised; E30 doesn’t affect mileage and is very close to the mileage from E10. Sometimes it is challenging when big oil and big ranchers lash out at ethanol, it can be hard to overcome the negative feedback nationally.”

In light of the challenges with ethanol, Kornkven sees promise for the future. “I think we’ve overcome a lot with consumer education. Over the past ten years we’ve been able to address consumer backlash by dispelling many of the myths surrounding Ethanol. When you are producing your own fuel it’s easier to sell and to support local communities. As FFV vehicles become more widespread, we need to continue to educate the public about the benefits of ethanol.”

Mansfield Oil Acquires Western Ethanol

Source: Convenience Store News

ATLANTA -- Mansfield Oil Co. acquired all of Western Ethanol's assets and added Doug Vind, the company's president, to the Mansfield team.

In addition to providing bulk deliveries of ethanol, Western Ethanol specializes in the distribution of E85 for use in Flex Fuel Vehicles and is a leading distributor of E85 in the western United States.

"Our acquisition of Western Ethanol is an important addition to our renewable fuels strategy and provides Western's customers and suppliers with long-term stability in a partner they have valued for many years," said Douglas Haugh, executive vice president of Mansfield Oil. "We are also excited to add Doug Vind to our management team. He has been an innovator in the ethanol industry over the past two decades and we look forward to integrating his vision and experience into our long-term strategy for our renewable fuels business."

Western Ethanol's customers include major gasoline refiners and large gasoline blenders for bulk ethanol sales, as well as independent gasoline retailers and federal, state and municipal automotive fleets for E85 sales throughout California, Washington, Oregon, Idaho, Nevada, Arizona and Hawaii.

"We look forward to offering our customers the additional supply chain management capabilities provided by Mansfield being able to grow both our wholesaling efforts and proprietary ethanol transloading services business with their support," said Doug Vind, president of Western Ethanol. 

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New E85 and Blender Pump Stations

We currently have 2149 total locations and 157 blender pumps as of the last FYI Newsletter.

New and Renewed Growth Energy Market Development Members

Rocky Point Citgo
Gerstner Oil Companies

Ethanol Teams with Veterans to Highlight Energy Security on Memorial Day

Source: Ethanol Across America

Washington, DC — The Clean Fuels Development Coalition, the Ethanol Across America education campaign, and the FlexFuel Vehicle (FFV) Club once again teamed with Volunteers of Underage Military Service (VUMS) yesterday with a procession of ethanol and hybrid vehicles in the national Memorial Day parade to highlight the role of energy and national security.

Capping a weekend of national remembrance for America's fallen soldiers, the parade through the streets of the nation's capitol featured hundreds of veterans with a crowd of more than 200,000 in attendance. The VUMS group represents the highest degree of dedication as it is comprised of veterans who enlisted despite being underage. Marine Lt. Col. (ret) William C. Holmberg, a VUM and a nationally recognized environmentalist and proponent of renewable energy like ethanol, conceived the idea several years ago to team the VUMS with groups promoting domestic alternatives to imported petroleum.

"Our slogan is There is no National Security without Energy Security," said Holmberg, a board member of the American Council On Renewable Energy. "Groups like CFDC, Ethanol Across America, the Flexible Fuel Vehicle Club, the Renewable Fuels Association, and ACORE work every day to increase that awareness. Marching together in the shadow of the WashingtonMonument, the Capitol, and the memorials helps people get the connection that much of the unrest around the globe has links to oil. Increasing our supply of domestic fuels makes our nation safer and more secure, plain and simple," he said.

The procession included the CFDC/Ethanol Across America FlexFuel Chevy Avalanche and the Flexible Fuel Vehicle Club's Chevy Tahoe, the Renewable Fuels Association’s Ford E85-Electric Hybrid Escape, and several electric hybrid vehicles.

"Under any circumstances it would be an honor for us to be part of the salute to all those who have served. Our generation sees the loss of jobs, wealth, and military cost of importing more than 60% of our oil, and we have an opportunity to do something about it," said Douglas A. Durante, Director of the Ethanol Across America program. "If reducing our dependence on oil keeps us out of one less conflict, and keeps young Americans from having to be memorialized, then we should all be working toward that goal."

According to FlexFuel Vehicle Club President Burl Haigwood, the parade provided an opportunity to increase public awareness that we can do something about it, right now. "With nearly 8 million flex fuel vehicles on the road today, if we ran those vehicles on clean, domestic fuels like ethanol we could reduce our reliance on unstable regimes and reduce the military costs of protecting our oil interests. Consumers can utilize the flex fuel vehicles they already own and look at the flex fuel vehicle option for future purchases," said Haigwood.

Col. Holmberg concluded the day’s events stating “Alternative fuel, high-mileage vehicles and ethanol are our front lines in securing a more secure energy future for America, and, by the way, major artillery in our climate change battles.” .

For more information on the Ethanol Across America campaign, the FlexFuel Vehicle Club, or issues relating to ethanol and biofuels, please visit http://www.ethanolacrossamerica.org. For information on the Veterans of Underage Military Service please contact William C. Holmberg at biorefiner@aol.com.