A panel of three Washington public policy specialists took the stage at the National Ethanol Conference on Tuesday to talk about what is going on inside the beltway.
The panelists included Anne Steckel with the American Farm Bureau, Jim Ford with the American Petroleum Institute and Mark Maher with GM. Not present was Michael Goo, formally with the Natural Resources Defense Council, who now has a new job under the new administration.
That led Renewable Fuels Association president Bob Dinneen to ask the panel what they think about the environmental community moving into high level positions in the administration. Overall, they seem to be very positive about the new administration and are looking forward to working with them. Steckel pointed out that the Obama administration wants to “make decisions based on sound science, so that really reassures us.”
Some senators got an early start on summer grilling season Wednesday by putting the heat on Big Oil.
As crude oil prices jumped over $4 to settle at more than $133 a barrel, oil company executives faced tough questions from the Senate Judiciary Committee on why prices continue to climb.
The oil executives defended their profits and the price increases with statements such as, “The fundamental laws of supply and demand are at work,” made by John Hofmeister, chairman of Shell Oil.
They also brought up biofuels and restrictions on drilling for oil in the United States. Peter Robertson with Chevron Corporation said, “Congress has recently made some hard policy choices on renewables and energy efficiency. We hope you can also make the equally hard choices to open up more federal lands and allow us to responsibly produce more American oil and natural gas, which can supply us for decades to come.”
When asked directly about their own personal income last year, most of the five Big Oil execs were vague and evasive. Only J. Stephen Simon, executive vice president of Exxon Mobil, was specific and direct - $12.5 million. No doubt he has no worries about spending $60 to fill up his tank.
Sen. John Thune (R-SD) plans to introduce a bill this week that would let buyers of cars or trucks capable of running on up to 85 percent ethanol enriched fuel claim a $1,000 tax credit.
Thune says we can’t conserve our way out of our dependence on foreign oil, “We’ve got to start taking steps to diversify our fuel supply.”
According to an AP story out of Sioux Falls, Thune’s bill would allow consumers purchasing an optimum flexible fuel vehicle - which runs on E-85 with an improved fuel economy similar to that of a gasoline-powered ride - to claim a $1,500 tax credit.
Thune, who was among a bipartisan group of Senators that sent a letter last week to Environmental Protection Agency Administrator Stephen Johnson supporting the Renewable Fuels Standard (RFS), says his legislation would encourage consumers to buy more flex-fuel vehicles, which would in turn increase demand for E-85 and blender pumps.
As the House Subcommittee on Energy and Air Quality heard testimony regarding the Renewable Fuels Standard (RFS) on Tuesday, oil hit yet another record high of $122 a barrel.
RFA president Bob Dinneen reminded the committee of that several times during the hearing, having to correct his own pre-prepared remarks. “Mr. Chairman, the RFS made sense when you passed it in December and prices were $90 a barrel,” Dinneen said. “It makes more sense today with crude oil prices at $120 a barrel. I’m sorry, just while this hearing has been going on, the market has increased and we’re now looking at $122 a barrel oil.”
“Ethanol is the only tool we have today that can address the nation’s most serious economic issue – our dependence on imported oil and the rising price of gasoline and crude oil,” he said.
Listen to Bob’s testimony here: 
Dinneen Hearing Testimony (6:00 MP3 file)
It was publicity hound P.T. Barnum who is credited with the quote “I don’t care what they say as long as they spell my name right.” Wonder if his name was as hard for the media to get right as “Dinneen.”
Bob’s name is frequently spelled “Dineen” by the media - like this recent Reuters story. Now seriously, they could spell Urbanchuk right but not Dinneen?
When I was in Journalism school back in the old days, it was considered a major fact error to get someone’s name wrong. And in today’s world of the internet, double-checking is just a click away.
In fact, the article was written by one person and edited by another. Someone should have been able to check.
The good news is, it was a positive article making RFA’s point that a waiver of the RFS would increase gasoline prices even more. So, in this case, Bob probably doesn’t care that they spelled his name wrong - the message was more important.
Update: Just noticed that the AP story on today’s hearing about the RFS by the House Subcommittee on Energy and Air Quality also spelled Bob’s name wrong, even though it is spelled correctly on the witness list. Sorry, but as a journalist that really bothers me.
“Getting It Right: Responding to Market Forces” was the plenary session at USDA’s 2008 Outlook Forum last week. The topics were livestock issues, trade issues, biotechnology and biofuels with the moderator saving “the man of the hour” - Bob Dinneen of the RFA - for last on the program.
Bob made it clear - once again - that ethanol is “not a silver bullet” for all of America’s energy, economic and environmental issues, but “biofuels are absolutely a part of addressing each of them to some extent.”
“We have become a critically important part of the nation’s economy,” Dinneen noted, talking about how ethanol has revitalized small towns across the country.
Dinneen also talked about how increased ethanol production has equaled the increase in gasoline usage over the past several years. “We have stemmed the tide of increased gasoline imports into this country,” he said.
And he talked about cellulosic ethanol. “We recognize that in order to grow our industry we need to move beyond grain,” and Dinneen says it is already happening.
The entire webcast of Bob’s remarks on the panel is posted on USDA’s website. The cast is almost two hours long and Bob is about an hour in to it, but its all worth listening to/watching.
RFA President Bob Dinneen testified before the House Appropriations Committee Subcommittee on Energy and Water Thursday about the energy security benefits and economic opportunities that are being created by the growth of America’s domestic ethanol industry.
Dinneen stressed the important role infrastructure and technology will play in the expansion of biofuels nationwide and how America’s domestic ethanol producers are already providing significant economic, environmental and energy security benefits for the country.
In an overall environment of slowing economic growth, the U.S. ethanol industry stands out in sharp contrast. According to a report soon to be released from economist John Urbanchuk of LECG, LLC, the American ethanol industry is a job creating engine. The increase in economic activity resulting from ongoing production and construction of new ethanol capacity supported the creation of 238,541 jobs in all sectors of the economy during 2007. These include more than 46,000 additional jobs in America’s manufacturing sector — American jobs making ethanol from grain produced by American farmers.
Ethanol is also helping to stem the tide of global warming, today. The use of low carbon fuels like ethanol is reducing greenhouse gas emissions from the more than 200 million cars on American roads. The 9 billion gallons of ethanol we will produce in 2008 will reduce greenhouse gas emissions by more than 14 million tons, or the equivalent of taking 2.5 million vehicles off the road. These benefits will only increase as new technologies, new feedstocks and new markets for renewable fuels are created.
Read the entire testimony here.
The Senate Committee on Energy and Natural Resources held a hearing this morning on the effects of the Renewable Fuels Standard on Energy Markets.
“The RFS requires that increasing amounts of our motor vehicle fuel come from biofuel, such as ethanol from corn and biodiesel from soy,” said Committee Chairman Jeff Bingaman (D-NM). “Homegrown biofuels are good energy policy, good environmental policy and good national security policy. However, there is some concern that RFS as enacted risks taking the biofuels industry backward rather than pushing it ahead. I am particularly concerned about three aspects of the RFS: first, early year biofuel requirements could be too aggressive; second, mandates for specific technologies and feedstock could prove to be overly prescriptive; finally, the environmental restrictions may be too narrow.”
Witnesses at the hearing included RFA president Bob Dinneen, ACE executive vice president Brian Jennings, Michael McAdams of the Advance Biofuels Coalition, Charles Drevna of the National Petrochemical and Refiners Association and Carol Werner with the Environmental and Energy Study Institute.
RFA President Bob Dinneen will present testimony to the Senate Energy and Natural Resource Committee at a hearing Thursday on the Energy Independence and Security Act (EISA) of 2007.
Bob Dinneen says the legislation was an historic step forward toward a stronger energy future and the American ethanol industry stands ready to do its part to make the law successful.
Part of Dinneen’s prepared testimony includes the following:
“The enactment of the 2007 Energy Act is a testament to what we can do when we work together toward a shared vision of the future. By increasingly relying on domestically produced renewable fuels, including next generation technologies such as cellulosic ethanol, we can begin the hard work necessary to mitigate the impact of global climate change, reduce our dependence on foreign oil, and leave a more stable and sustainable future for generations that follow.â€
A complete copy of Dinneen’s remarks will be available Thursday morning on the RFA website.
Renewable fuels had a place in the final State of the Union address by President George W. Bush.
To build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology. Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil consumption over the next decade, and you responded. Together we should take the next steps: Let us fund new technologies that can generate coal power while capturing carbon emissions. Let us increase the use of renewable power and emissions-free nuclear power. Let us continue investing in advanced battery technology and renewable fuels to power the cars and trucks of the future. Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources. And let us complete an international agreement that has the potential to slow, stop, and eventually reverse the growth of greenhouse gases.
The speech also focused on ways to stimulate economic growth in the nation, but RFA president Bob Dinneen notes that ethanol is already helping with both the economy and the environment.
“The emerging ethanol industry in the country is turning environmental stewardship into economic opportunity at a time when our economy desperately needs a shot in the arm. By investing our resources in developing domestic, renewable alternatives to foreign oil, we can begin reducing this nation’s global warming footprint and create jobs and economic activity at home rather than transferring our nation’s wealth to oil-rich countries around the globe. Renewable fuels like ethanol are demonstrating that when it comes to the environment and the economy, it is possible to have it both ways.â€
In an overall environment of slowing economic growth the U.S. ethanol industry stands out in sharp contrast. According to a report set to be released in late February from economist John Urbanchuk of LECG, LLC, the American ethanol industry is a job creating engine. The increase in economic activity resulting from ongoing production and construction of new ethanol capacity supported the creation of 238,541 jobs in all sectors of the economy during 2007. These include more than 46,000 additional jobs in America’s manufacturing sector — American jobs making ethanol from grain produced by American farmers.
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