Renewable Fuels a Focus on Capitol Hill Today

Both the Senate Finance Committee and the House Ways and Means Committee Subcommittee on Select Revenue Measures are looking at the incentives provided for renewable fuel use.  The RFA will be testify at the House committee later this afternoon.  The full text of RFA’s testimony can be found on the RFA website.

Ethanol Supply Will Meet Demand

According to a report released by the Energy Information Administration (EIA) today, ethanol production is anticipated to average nearly 17 million gallons a day.

In an article from Reuters, “Unlike last summer when refiners had problems switching over to mixing ethanol with gasoline, more U.S. ethanol plants have come online, boosting supply by close to 28 percent.

“U.S. ethanol production this summer is forecast to average 399,000 barrels a day, up from 313,000 barrels a day last summer, the EIA said.”

The bad news:  gasoline prices are expected to average $2.81, down 3 cents from 2006.

Senate Energy Committee Hearing 4/12

The Senate Energy Committee has finalized its witness list for a hearing to discuss S.987, the Biofuels for Energy Security and Transportation Act.  Among other provisions, the legislation calls for 36 billion gallons of alternative fuel use by 2022. 

Those testifying include:

Panel 1
The Honorable Alexander Karsner , Assistant Secretary for Energy Efficiency and Renewable Energy, U.S. Department of Energy

Panel 2
Bob Dinneen , President and Chief Executive Officer, Renewable Fuels Association
Daniel Lashof , Science Director, Climate Center, Natural Resources Defense Council
Red Cavaney , President and Chief Executive Officer, American Petroleum Institute
Brian Foody , Chief Executive Officer, Iogen Corporation

Testimony from RFA President Bob Dinneen will be available on the RFA website Thursday morning.  All other testimony will be available on the committee’s website.

RFS Now Final

EPA Administrator Johnson, Energy Sec. Bodman and NHTSA Administration Nicole Nason today put the final rule for the Renewable Fuels Standard on the books.  During a press conference, they underscored the important role renewable fuels must play in meeting President Bush’s goal of reducing gasoline consumption by 20% in the next 10 years.

“The Renewable Fuel Standard offers the American people a hat trick – it protects the environment, strengthens our energy security, and supports America’s farmers,” said EPA Administrator Stephen L. Johnson.  “Today, we’re taking an important first step toward meeting President Bush’s “20 in 10” goal of jumping off the treadmill of foreign oil dependency.”

RFA Chairman Ron Miller recognized the important role the RFS and 2005 energy bill has played in moving the US ethanol industry forward:

“The Renewable Fuels Standard was a watershed piece of legislation for the U.S. ethanol industry,” said Renewable Fuels Association Chairman Ron Miller, the president and CEO of Aventine Renewable Energy, Inc. in

All the details of the final RFS regulations can be viewed on EPA’s website. 

Is Castro Right?

After months of silence, Cuban leader Fidel Castro has reemerged to challenge America’s renewable fuels industry.  Specifically, Castro is charging that the US ethanol industry will be responsible for starving millions of people around the globe.

Castro’s claims are just plain false, says Thomaz Almeida, a Brazilian research associate at the Council on Hemispheric Affairs.  In an interview with United Press International appearing April 5, Almeida said of Castro’s accusations, “It`s just not true. That`s not a major problem.”

Later in the article, Almeida claims the real impact will be felt in the size of profits made by the beef and chicken industries. 

“While the beef and chicken industries already expect to have a smaller profit for 2007 due to ethanol, ‘it will not lead people to starve; it will just lead to those industries having a smaller profit,’ he said.”

Ethanol Production Continued Momentum

The Renewable Fuels Association (RFA) today announced that U.S. ethanol production and demand continue to set records as more Americans are looking to renewable fuels like ethanol to start America down the road of energy sustainability.  According to information from the Energy Information Administration and the RFA, production of ethanol in January 2007 averaged 375,000 barrels per day (b/d) while demand averaged 414,000 b/d.The increases in production and demand represent a rise of 87,000 b/d and 143,000 b/d respectively from January 2006.

 The RFA released the following statistics:

January 2007 Statistics  (mg = million gallons; b/d = barrels per day) 

*Source: 

^ Jim Jordan and Associates