3 Questions DOE and Congress Must Answer About the Renewable Energy Loan Guarantee Program
Since its creation, the Department of Energy’s Renewable Energy Loan Guarantee Program (as established by the 2005 energy bill) has been defined by inaction and obstruction and is largely seen as a complete failure to date in terms of bringing next generation biofuel technologies to the marketplace. Additionally, the loan guarantee program has been raided time and again to pay for other federal programs with little if anything to do with renewable energy. Despite repeated promises to restore funding, money stolen from the program is still MIA. At the Senate hearing this Thursday, DOE officials and members of Congress have some explaining to do.
Posted in Ethanol, Energy, Environment, Fuel, Renewable Fuels, U.S Dept. of Energy
Membership Spotlight: East Kansas Agri-Energy Turns Five!!
This October, RFA Member East Kansas Agri-Energy, LLC (EKAE) will be celebrating their 5th year anniversary of ethanol production and helping fuel America. A short five years ago, EKAE accepted their first load of corn, produced and shipped their first gallon of ethanol and delivered their first shipment of distillers grains. Throughout these past five years, EKAE has exceeded expectations, now producing ethanol past nameplate capacity and receiving numerous safety awards and energy efficiency recognition.
Posted in Ethanol, Energy, Environment, Exports, Fuel, Production, Water
No Surprise Here - More Problems Emerge with RFS Greenhouse Gas Calculations
Despite the fact that real-world data and events have disputed the ILUC theory at every turn (e.g., grain and oilseed exports haven’t fallen off, soybean acreage hasn’t decreased, livestock feed use remains steady, Amazon deforestation is decreasing, etc., etc.), EPA’s final rule for the RFS2 institutes a severe ILUC penalty against corn ethanol and other biofuels. But there’s a major problem with how EPA derived its ILUC penalties: the agency based the penalties on modeling scenarios where each individual biofuel was isolated and volumes of that biofuel were increased while other biofuel volumes were held constant. Of course, that’s not how the RFS2 works—the regulation requires simultaneous increases of several types of biofuels. When EPA modeled a scenario in which all biofuels volumes were increased simultaneously in accordance with RFS2 requirements, the amount of land use change was half of what it was in the cases where EPA isolated individual biofuels. If EPA had used this modeling case to develop its LUC penalties, the hit to corn ethanol would have been 10.8 g CO2e/MJ, rather than EPA’s estimate of 28.4 g/MJ. Such a reduction in LUC emissions means overall lifecycle GHG emissions for 2022 average corn ethanol would be 38% less than baseline gasoline emissions, rather than the 21% estimate finalized by EPA.
Posted in Ethanol, EPA, Environment, Land Use, Renewable Fuel Standard, Research
Environmentalist Expose Big Oil’s Record of Destruction…Finally
Many people, including me, have been puzzled by the silence, or at least perceived silence, of the environmental community over the oil spill in the Gulf. As millions of gallons of oil kill ocean life and ruin coastlines, many in the environmental community seem oddly muted in their protest. Finally, the National Wildlife Federation is exposing the record of spills, accidents and other incidences that have released countless gallons of oil into the environment all across the country since 2000…all while a new oil spill in Michigan highlights the risk of oil to all parts of the country.
Posted in Agriculture, E-Xchange, Ethanol, Energy, Environment
Corn Commentary Takes on the Gray Lady
East Coast media has long had disdain for agriculture, and by extension, ethanol. Much of this dislike stems from a fundamental lack of understanding about the industries and issues important to rural America. While the Wall Street Journal has long been the standard bearer for such vitriol, when it comes to ethanol, the New York Times doesn't fall too far behind. The Times' latest anti-ethanol effort is disguised as a choice between good and bad energy subsidies. The Times argues that subsidies for wind and solar are critical to those industries' survival and our nation's goal of reduced oil consumption (we don't use oil to produce electricity, by the way). The Times then says investments in ethanol, which does replace oil directly in American gas tanks, is unworthy. To be clear, we should be increasing investments in all renewable energies, not picking and choosing winners. Supporting its position, the Times relies on many of the canards offered by ethanol critics about environmental concerns and land usage. My friends over at the Corn Commentary take exception with the Gray Lady's portrayal and perception of ethanol, and offer a rebuttal. Worth a read.
Posted in Agriculture, Ethanol, Energy, Environment, Fuel, Land Use, Media, VEETC
Protecting Our Addiction to Oil Comes at a Cost
For years now, we have heard environmentalists and some in the government tell us that gasoline production and oil use don't have indirect greenhouse gas emissions. It is only biofuels like ethanol, we have been told, that must suffer penalties for these so-called indirect emissions. According the a new groundbreaking report to be published in Environmental Science, requiring our military to protect the free flow of oil comes with environmental consequences. And those impacts are potentially HUGE.
Posted in Ethanol, EPA, Environment, Land Use, Renewable Fuels, Research
TGIF!
After a frenetic week in Washington for America's ethanol industry, all i have to say is Thank Goodness It's Friday!
Posted in Ethanol, Energy, Environment, Renewable Fuel Standard, Tariff , VEETC
CBO, Ethanol, and the Rest of the Story
This week, the Congressional Budget Office (CBO) released a report critical of ethanol tax incentives, but devoid of any comparisons to other energy tax incentives (like those for Big Oil). The report relied on what were, in large part, worst-case assumptions and also failed to give credit for co-products now an undeniable component of the industry that must be taken into account. After a thorough review, we have come up with some of key takeaways and criticisms of the report.
Posted in Ethanol, Environment, Renewable Fuels, Renewable Fuel Standard, VEETC
CBO, Chairman Bingaman and the Future of the Ethanol Tax Incentive (First Cut)
A new report from the Congressional Budget Office takes the issue of ethanol tax incentives completely out of context. Nowhere in the report does CBO compare ethanol incentives to those provided to fossil fuels. Neither does CBO give credit to America's ethanol industry for the environmental and efficiency improvements it has made or the production of coproducts such as livestock feed and corn oil.
Posted in Ethanol, Energy, Environment, VEETC
Funny if it weren’t so sad
Environmentalists may lack some concrete solutions today to actively address the nation’s energy challenges, but one thing they are not short on is creativity – at least when it comes to finding new ways to thwart biofuels.
Posted in Ethanol, Energy, Environment
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