http://www.ethanolrfa.org/ en Copyright 2012 2012-01-31T20:34:14+00:00 http://www.ethanolrfa.org/news/entry/rfa-raises-gatt-wto-concerns-over-recent-anti-trade-tax-in-brazil/ http://www.ethanolrfa.org/news/entry/rfa-raises-gatt-wto-concerns-over-recent-anti-trade-tax-in-brazil/ (January 31, 2012) Washington – The Renewable Fuels Association (RFA) today wrote to U.S. Trade Representative Ambassador Ron Kirk urging him to investigate the news that the Brazilian state of Sao Paulo was imposing a 25% tax on all imported ethanol.  Port Santos in Sao Paulo is the main port of entry for U.S. ethanol exports to Brazil, which accounted for an estimated 400 million gallons in 2011.    “Because ethanol produced in Sao Paulo is tax exempt, ethanol imported into Sao Paulo from the United States and other areas is at a substantial economic disadvantage,” wrote RFA President and CEO Bob Dinneen.  “We believe this action is discriminatory and may severely—and immediately—restrict the exportation of U.S. ethanol to Brazil.”  In early December, the nation of Brazil extended a temporary suspension of a 20% federal tariff on imported ethanol.  While the RFA welcomed that news, it cautioned that the decisions surrounding Brazil tariffs are neither permanent nor transparent and additional trade barriers could be constructed at any time.  The actions of the state of Sao Paulo are such an example. “This action not only effectively reinstates the tariff on U.S. exports, but increases it by 5%,” wrote Dinneen.  “Moreover, we believe the action taken by the state of Sao Paulo is in violation of Article III:4 of the Generalized Agreement on Tariffs and Trade (GATT) and possibly Article 2.1 of the World Trade Organization’s (WTO) Technical Barriers to Trade Agreement.” This year, exports of U.S. ethanol shattered previous records, reaching  more than 1 billion gallons in volume and some $2.5 billion in value. More than one-third of U.S. ethanol exports to Brazil in 2011; and, prior to this action, prospects for increased shipments to Brazil in 2012 were bright.  “These exports have helped to sustain the industry’s growth and profitability as we work to remove artificial barriers to the consumer market for ethanol in the U.S.  It is no doubt that this recent decision will result in the erection of another significant barrier to U.S. ethanol exports to Brazil.  We are hereby seeking your assistance in addressing this and other persisting trade distortions in Brazil,” wrote Dinneen. A copy of the letter can be read here. 2012-01-31T20:34:14+00:00 http://www.ethanolrfa.org/news/entry/eight-students-selected-for-national-ethanol-conference-scholarship/ http://www.ethanolrfa.org/news/entry/eight-students-selected-for-national-ethanol-conference-scholarship/ (January 31, 2012) Washington - The Renewable Fuels Association (RFA) and the Renewable Fuels Foundation (RFF) are excited to announce the eight recipients of a scholarship to attend the 17th Annual National Ethanol Conference: Accelerating Industry Innovation. This is the third consecutive year the scholarship has been available to students in higher education. These recipients will receive a complimentary registration to the conference, providing them an invaluable experience and opportunity to connect with hundreds of ethanol leaders, policy makers and experts in the renewable fuels industry. The National Ethanol Conference (NEC) has been recognized as the preeminent conference for delivering accurate, timely information on marketing, legislative and regulatory issues facing the ethanol industry.  With numerous networking opportunities, more business meetings are conducted and contacts made at this conference than any other ethanol conference. This year’s program will highlight how the ethanol industry continues to evolve to meet the demands of a rapidly changing marketplace. With federal policy changing, the global, market-driven environment in which the industry must compete comes with new market challenges. Industry leaders and experts will address how we are meeting these new demands by accelerating innovation in technology, marketing, logistics and feedstocks for the production of advanced ethanol. Each scholarship recipient is a student in higher education that has focused their studies on renewable energy and biofuels and is interested in pursuing a career in the industry. “It is very encouraging to see such high levels of interest in biofuels from students year after year through this program,” said Mike Jerke, RFF Chairman and General Manager for Chippewa Valley Ethanol Company.  “Networking with experts in the U.S. ethanol industry gives these students a first-hand look behind an evolving industry and the direction it is heading. This is a chance for them to explore the opportunities the industry has to offer.” The eight recipients of the NEC Scholarship are: Olumoye Ajao is currently a Ph.D student in chemical engineering at the École Polytechnique de Montréal. His research focus at the Research Unit on Energy Efficiency and Sustainable Development of the Forest Biorefinery is the development of biorefinery processes for the production of ethanol and furfural from hemicelluloses. Anahita Eckard is a PhD candidate and graduate research assistant in Agricultural and Biosystems Engineering at South Dakota State University. She is currently conducting research on novel surfactant and proteinaceous micelles that can improve the activity of cellulytic enzymes and fermenting yeast for production of bioethanol. Ted Elverson is majoring in Agriculture and Biosystems Engineering at South Dakota State University.  He grew up on a farm and has strong roots in agriculture.  Ethanol is a large part of agriculture and has affected him for most of his life.  This has led him into an internship with POET and a career focus in the biofuels. Hunter Flodman is a PhD candidate in the Department of Chemical and Biomolecular Engineering at the University of Nebraska – Lincoln.  He is a co-instructor for process control and unit operations courses.  Hunter’s research involves utilizing dry grind corn ethanol co-products to produce value added products.  Jason Levar is in his second year at A.A.S. Energy Technical Specialist program at Minnesota West Community & Technical College. Jason wishes to pursue a career in the ethanol and renewable fuels industry once he completes his degree. Karen Lewis is from a fifth generation family farm in Michigan that was settled in 1876.  She is currently a Ph.D. student at Arizona State University in the Morrison School of Agribusiness and Resource Management. Her research area of interest is agricultural policy analysis. Vinay Patel is an MBA student at Troy University in Troy, AL with a focus in Information Systems. Vinay is currently participating in National Clean Energy Business Plan Competition under United States Department of Energy (DOE). Yi Wang holds a Master degree in Environmental Engineering from University of Science and Technology of China (USTC), and is now pursuing his PhD degree in Agricultural and Biological Engineering at University of Illinois at Urbana-Champaign (UIUC). Yi’s research relates to biofuel production from lignocellulosic feedstocks through fermentation with clostridium or yeast.  The Renewable Fuels Foundation (RFF) is dedicated to meeting the education, research and strategic planning needs of the U.S. fuel ethanol industry. The goal is to assure a growing healthy renewable fuels industry well into the future. The focus of the RFF is toward academia, industry and public policy makers as we address issues related to new users, new feedstocks and new technologies that will impact the future of ethanol. For more information visit www.renewablefuels-foundation.org. 2012-01-31T15:06:18+00:00 http://www.ethanolrfa.org/news/entry/aec-says-senate-briefing-on-cellulosic-ethanol-shows-real-progress-in-marke/ http://www.ethanolrfa.org/news/entry/aec-says-senate-briefing-on-cellulosic-ethanol-shows-real-progress-in-marke/ (January 30, 2012) Washington – Advanced Ethanol Council (AEC) Executive Director Brooke Coleman issued the following statement in response to the Cellulosic Ethanol briefing co-hosted today by Senator Coons (D-DE), Senator Inhofe (R-OK) and the American Chemical Society: “Senator Coons’ statement was spot on. The industry is making real progress, with a number of commercial projects under construction across the country. As is the case for all forms of energy production, policy certainty is key. And much is at stake, including energy security, economic development and a vast set of environmental considerations,” said Coleman. Coleman added, “these plants produce the most innovative and cleanest liquid fuel in the world, and the development of this industry will open a global marketplace to new product streams that could put America at the forefront of a worldwide competition to commercialize next generation liquid transportation fuels and sustainable chemicals.” With regard to the panelists, the AEC made specific reference to the presentations delivered by Douglas Karlen of the U.S. Department of Agriculture (USDA) and Virginia Dale of the Oak Ridge National Laboratory. “Dr. Karlen and Dr. Dale are two of the foremost experts in the field of bioenergy, and should be commended for highlighting that advanced biofuel development is not just an energy security issue, but also provides a tremendous opportunity to further spur rural economic development, increase the quality of soil and water, reduce carbon emissions, and help the United States compete in the global race to produce next generation fuels, electricity and chemicals.” Coleman expressed some skepticism about the overly pessimistic view of advanced and cellulosic ethanol production expressed by University of Purdue Professor Wally Tyner.  Coleman noted that trying to fit the progress of advanced and cellulosic ethanol technology into the known evolution of the grain-based ethanol industry over 30 years is “like trying to put a square peg in a round hole.”  Coleman pointed out that the vast majority of capacity growth in the ethanol industry occurred in the last decade when economic conditions, technological evolutions, and consistent public policies helped encourage the industry’s growth. Such conditions are critical to the advanced ethanol industry as well.  “Dr. Tyner and the other panelists are right to point out that it is very difficult to make large-scale investments in new technology when clean energy tax incentives are being allowed to expire, when cornerstone policies like the RFS are under attack, and when there is so much spin in the national and international discussion about energy. U.S. policymakers need to paint the lines on the field and stick to them; otherwise we are going to lose even more investment capital to China, India and Brazil.” Advanced Ethanol Council 2012-01-30T22:05:45+00:00 http://www.ethanolrfa.org/news/entry/zeachem-selected-for-232.5-million-usda-loan-guarantee/ http://www.ethanolrfa.org/news/entry/zeachem-selected-for-232.5-million-usda-loan-guarantee/ AEC Member Company to Build Commercial-Scale Cellulosic Ethanol Biorefinery in Boardman, Oregon (January 26, 2012) Washington DC – ZeaChem, Inc., a developer of biorefineries for the conversion of renewable biomass into sustainable fuels and chemicals, announced today that it has been selected for a $232.5 million loan guarantee from the U.S. Department of Agriculture’s (USDA) 9003 Biorefinery Assistance Program. In a statement released today, ZeaChem president and chief executive officer Jim Imbler called the award “a significant validation for ZeaChem’s highly efficient, economical and flexible biorefinery technology,” and detailed the company’s ongoing development of a 25 million gallon per year commercial-scale cellulosic ethanol production facility adjacent to its demonstration plant in Boardman, Oregon. The facility will produce advanced ethanol and bio-chemicals from woody biomass and agricultural residues. “This is a very exciting and innovative project and we are very pleased to see ZeaChem moving into the commercial stages of cellulosic ethanol production,” said Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC). “The advanced and cellulosic ethanol industry is breaking through in a challenging financial climate, which speaks to the evolution of the technology and the value proposition offered by the most innovative liquid fuel and chemical producers in the world.” In a statement, U.S. Agriculture Secretary Tom Vilsack called the ZeaChem project and others like it “critical to ensuring America’s energy future.” The USDA loan guarantee program, which helps advanced biorefining projects attract capital and reduce the initial risk of deploying new technologies, remains critical to the advancement of the cellulosic ethanol industry in the United States. “Secretary Vilsack and the USDA clearly understand the urgency with which this country needs to develop cleaner and more secure sources of energy,” added Coleman. “These programs and USDA’s leadership are critical to our efforts to develop the advanced ethanol industry and ensure that the U.S. emerges as the global leader in the development of advanced biofuels and bio-products.” The AEC is the only advanced biofuel group with the singular purpose of promoting advanced ethanol fuels and technologies. Twelve member companies make up the AEC including, Abengoa Bioenergy, Beta Renewables, BlueFire Renewables, Coskata, Enerkem, Fulcrum BioEnergy, Inbicon, Iogen, Mascoma, Osage BioEnergy, Qteros and ZeaChem. Advanced Ethanol Council 2012-01-26T15:28:30+00:00 http://www.ethanolrfa.org/news/entry/usda-accepting-reap-fund-apps-for-blender-pump-installation-byo-ethanol-off/ http://www.ethanolrfa.org/news/entry/usda-accepting-reap-fund-apps-for-blender-pump-installation-byo-ethanol-off/ (January 24, 2012) Washington – The U.S. Department of Agriculture (USDA) is now accepting applications for federal REAP funds to help gasoline retailers install blender pumps designed to give consumers flexibility and choice in the ethanol blends they use. This is the second year that blender pumps have been authorized as part of the REAP program. Agriculture Secretary Tom Vilsack announced in 2011 that USDA had plans to install 10,000 blender pumps over the next five years. That announcement and this year’s opening of the application process is welcome news to the Blend Your Own (BYO) Ethanol campaign, a joint educational effort by the American Coalition for Ethanol (ACE) and the Renewable Fuels Association (RFA). The campaign will again offer free grant writing services to those interested in applying. “This program provided funding for more than 250 blender pumps last year, providing many consumers with the choice and flexibility they deserve to pick the ethanol blends that work for them based on their vehicle, their beliefs, and their budget,” said RFA Director of Market Development Robert White. “Through the BYO Ethanol Campaign, we have the ability to assist retailers in applying for these funds and help USDA and the Obama Administration achieve the renewable fuel goals they have put forward. With E15 fuel registration due any day, these blender pumps will help spread this new blend across the country.” “We can break the stranglehold oil has over our nation’s economy and energy future by giving consumers the option to choose clean American fuels that are not petroleum,” said ACE Senior Vice President Ron Lamberty. “In just five years, growing ethanol use has helped us reduce our reliance on foreign oil by more than 10% - to a point where imports are less than half of total demand. We can continue that move toward greater energy independence by getting more ethanol in front of more consumers. The USDA’s announcement together with the efforts of the BYO ethanol campaign will go a long way toward making that happen.” The BYO Ethanol Campaign is designed to inform gasoline marketers and retailers about the opportunities blender pumps offer. Blender pump technologies allow retailers and consumers to choose the blend of ethanol they want from no ethanol content to 85 percent ethanol by volume. Increasing the number of blender pumps in operation in conjunction with expanding the size of the America’s flex-fuel vehicle (FFV) fleet capable of using high level ethanol blends is critical to achieving our nation’s energy goals, including commercializing advanced ethanol technologies. According to information released by USDA on Friday, this program is designed to help spur rural development. This program offers funding for grants, and loan guarantees, but certain restrictions will apply on the size of the local communities and the businesses applying for the funds. Applications for this program are due on March 30, 2012. For more information on the REAP Program, free grant writing services or blender pumps, please visit www.BYOEthanol.com or contact the following: Robert White Renewable Fuels Association (RFA) rwhite@ethanolrfa.org (402) 391-1930 Ron Lamberty American Coalition for Ethanol rlamberty@ethanol.org (605) 334-3381 2012-01-24T14:07:04+00:00 http://www.ethanolrfa.org/news/entry/un-fao-director-general-comments-on-biofuels-misguided-grfa/ http://www.ethanolrfa.org/news/entry/un-fao-director-general-comments-on-biofuels-misguided-grfa/ (January 24, 2012) TORONTO, Canada – As the Global Forum for Food and Agriculture draws to a close in Berlin, The Global Renewable Fuels Alliance has challenged new FAO Director General, Jose Graziano Da Silva on his simplistic and misinformed critique of biofuels and their alleged impact on commodity prices. “Mr. Da Silva has failed to recognize that the rising price of energy is the primary driver in the rising cost of all commodities including corn and sugar,” said GRFA spokesperson, Bliss Baker. Many international organizations have back tracked on their criticism of biofuels based on research which has found biofuels to have played a very minor role in the escalation of food prices globally. In fact, David Hallam, the FAO’s own Deputy Director has said that “unexpected oil price spikes could further exacerbate an already precarious situation in food markets.” “Mr. Da Silva would do well to listen to the International Energy Agency’s dire warnings about our energy security future when commenting on biofuels,” said Mr. Baker.  “The IEA concluded that biofuels could provide 27% of total transport fuel by 2050 and avoid around 2.1 gigatonnes of CO2 emissions per year when produced sustainably without jeopardizing food security,” said Mr. Baker The GRFA has repeatedly called for an increase in the use of biofuels to help reduce the world’s crippling reliance on crude oil. “I would urge the new FAO Director General to focus on the real cause of high food prices - the rising cost of energy,” concluded Baker. The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 65% of the global biofuels production from 44 countries. Through the development of new technologies and best practices, the Alliance members are committed to producing renewable fuels with the smallest possible footprint. For More Information Please Contact: Bliss Baker Global Renewable Fuels Alliance Work: (Country Code “1”) 416-847-6497 Mobile: 647-309-0058 Email: info@globalrfa.org http://www.globalrfa.org 2012-01-24T14:06:36+00:00 http://www.ethanolrfa.org/news/entry/sec.-vilsack-to-headline-national-ethanol-conference/ http://www.ethanolrfa.org/news/entry/sec.-vilsack-to-headline-national-ethanol-conference/ (January 23, 2012)  Washington – U.S. Department of Agriculture Secretary Thomas J. Vilsack will be the headline speaker at the 17th Annual National Ethanol Conference of the Renewable Fuels Association (RFA) in Orlando, Florida.  Vilsack will address the crowd of some 1,400 attendees at 8:20 a.m. Eastern on February 24. During his tenure, Secretary Vilsack has been a champion for all domestic renewable fuels, including ethanol. Secretary Vilsack has led the charge to modernize America’s fueling infrastructure through the installation of blender pumps.  Under his leadership, USDA is investing in new ethanol technologies that will turn abundant materials like grasses, wood wastes, ag residues, and municipal solid waste into ethanol.  And, Secretary Vilsack has been a steady voice in combating falsehoods about ethanol, including soundly refuting claims ethanol is the driving factor behind rising food prices.  “Secretary Vilsack is an advocate without equal when it comes to the importance of domestic renewable fuels like ethanol and we are honored to welcome him to the National Ethanol Conference,” said Bob Dinneen, RFA President and CEO.  “America’s ethanol industry is embarking on a new era for renewable fuels in this country.  With the continued support of Secretary Vilsack and the Obama Administration, domestically produced ethanol will displace greater amounts of imported oil, expand the benefits of ethanol production beyond the traditional Corn Belt, and create tens of thousands of jobs all across America.  No one better appreciates the potential of domestic ethanol production than Secretary Vilsack and his remarks will be eagerly received by those attending the NEC.” The National Ethanol Conference is the preeminent conference for delivering accurate, timely information on marketing, legislative and regulatory issues facing the ethanol industry.  More information on this year’s event, including registration opportunities and a complete agenda, can be found at www.NationalEthanolConference.com. 2012-01-23T16:51:02+00:00 http://www.ethanolrfa.org/news/entry/judge-denies-california-attempt-to-reimplement-lcfs/ http://www.ethanolrfa.org/news/entry/judge-denies-california-attempt-to-reimplement-lcfs/ (January 23, 2012) Washington - Today, Judge Lawrence J. O'Neill denied the California Air Resources Board's (CARB) motion to stay the decision he issued on December 29, 2011 that had halted the enforcement of the California's Low Carbon Fuel Standard (LCFS) regulation because that regulation is unconstitutional. On Friday, January 20, 2012, CARB filed papers asking the Court to reverse its decision and allow the state to continue implementing the LCFS in 2012. Judge O'Neill ruled that CARB "improperly seeks to relitigate issues this Court resolved in its order granting the preliminary injunction and orders on the summary judgment motions." He further noted that CARB sought not to preserve the "status quo" but rather to "allow enforcement that imposes higher restrictions than had been imposed previously" without citing any authority to show why the Court would have jurisdiction to grant that type of relief."Judge O'Neill's decision demonstrates the strength of our claims against the LCFS," said Renewable Fuels Association President and CEO Bob Dinneen and Growth Energy CEO Tom Buis. "The California LCFS seeks to regulate conduct outside its borders and is blatantly discriminatory and unconstitutional. American ethanol advocates will continue to oppose CARB's effort to reinstate this punitive policy that illegally seeks to dictate the production and transportion of ethanol and other fuels outside its border."CARB has appealed Judge O'Neill's finding that the LCFS violates the Commerce Clause of the Constitution. That litigation is in the 9th Circuit Federal Court of Appeals. 2012-01-23T14:00:59+00:00 http://www.ethanolrfa.org/news/entry/ethanol-industry-responds-to-carb-quest-for-stay-of-lcfs-preliminary-injunc/ http://www.ethanolrfa.org/news/entry/ethanol-industry-responds-to-carb-quest-for-stay-of-lcfs-preliminary-injunc/ (January 21, 2012)  Sacramento – Yesterday, the California Air Resources Board (CARB) asked Judge Lawrence O'Neill of the U.S District Court for the Eastern District of California to stay the injunction he issued on December 29, 2011, that halted CARB's implementation and enforcement of the California Low Carbon Fuel Standard (LCFS).  Judge O'Neill issued the injunction because he had determined that the LCFS violates the commerce clause of the U.S. Constitution.  Earlier this month, on January 5, CARB filed an appeal of Judge's O'Neill's decision with the U.S. Court of Appeals for the 9th Circuit. "Judge O'Neill's ruling clearly established that the LCFS significantly overreaches by attempting to regulate commerce in states outside of California," said Renewable Fuels Association (RFA) President and CEO Bob Dinneen and Growth Energy CEO Tom Buis.  "We are confident Judge O'Neill's ruling will stand, particularly as he outlined other specific actions the state of California could take to regulate carbon emissions that would not infringe upon the business practices of entities outside of California's borders." In its December ruling, the District Court accepted two of the arguments challenging the constitutionality of the LCFS.  Specifically, the Court held • That the LCFS discriminates against interstate commerce in ethanol because it assigns worse carbon-intensity scores to Midwest ethanol than to California ethanol; and • That the LCFS attempts to regulate conduct occurring wholly outside the borders of the state of California and is thus impermissibly extraterritorial. In its opinion, the Court held that CARB "cannot take 'legal and political responsibility' of commerce occurring outside of California, even if the products of that commerce ultimately are sold in California." 2012-01-21T17:05:38+00:00 http://www.ethanolrfa.org/news/entry/rfa-outlines-priorities-in-letter-to-obama-before-sotu/ http://www.ethanolrfa.org/news/entry/rfa-outlines-priorities-in-letter-to-obama-before-sotu/ (January 20, 2012) Washington – American ethanol production is creating jobs, energizing rural economies, reducing oil imports, and helping all consumers save money at the pump emphasized the Renewable Fuels Association today in a letter to President Obama as he prepares for the State of Union address on Jan. 24.  “While renewable energy discussions have been few and far between on Capitol Hill and in the election this year, the upcoming State of the Union address offers the unique opportunity to remind lawmakers and the American public of the value of a strong domestic renewable fuel industry,” wrote RFA President and CEO Bob Dinneen.  “The story of renewable fuels in America is good one.  Domestic production of ethanol, the largest and most viable biofuel available today, was nearly 14 billion gallons in 2011.  That represents ten percent of the nation’s gasoline supply.  Even more impressively, ethanol represents one-quarter of all motor fuel used in gasoline engines that is produced from domestic sources.” Dinneen underscored the value of domestic ethanol production in job creation, stating that “job creation estimates for 2011 as a result of U.S. ethanol production suggest close to 100,000 direct jobs and an additional 350,000 indirect and induced jobs supported by America’s ethanol producers.” Additionally, Dinneen seized upon the downturn in America’s use of imported oil and the direct impact the rise in domestic ethanol production has played in reversing the trend of a growing dependence on imported oil.  “As you know, for the first time since 1997, net oil imports account for less than 50 percent of total U.S. demand for crude oil,” wrote Dinneen.  “That is down significantly from recent years when nearly two out of three barrels of oil used in the U.S. were sourced from other nations.  …with ten percent of America’s gasoline supply now comprised of a domestic renewable fuel, American ethanol is meaningfully and directly helping to make the dangerous threats of petrodictators to disrupt vital oil shipping lanes less impactful.  This is not only saving Americans money, but it is also a way to help mitigate the need for U.S. military action to protect the flow of oil.” Dinneen urged President Obama to build on his record of success in support of domestic ethanol production to push for four important policy directions. First, ensuring the integrity and intent of the Renewable Fuel Standard is paramount to both existing ethanol producers and companies developing new technologies.  “This policy is the only nationwide domestic energy strategy that is directly reducing imports of oil while also creating permanent U.S. jobs and economic opportunities.  Moreover, it serves as the policy foundation for investment in and commercialization of advanced and cellulosic ethanol technologies,” wrote Dinneen. Second, extending key tax provisions for cellulosic ethanol production will be key to commercializing these technologies.  “Extensions of both the Production Tax Credit (PTC) for cellulosic ethanol and the Accelerated Depreciation Allowance for cellulosic biorefineries are two polices that are needed to spur continued investment and create some semblance of balance and parity within energy tax policy that is lacking today.” Third, the continued focus of the Obama Administration on ethanol and renewable fuel infrastructure and new production technologies will be critical to breaking the fossil fuel monopoly on the nation’s fuel supply.  Specifically, Dinneen commended the work of Agriculture Secretary Tom Vilsack noting, “[t]he Department of Agriculture has made wise and fruitful investments in next generation ethanol technologies, farming practices and technologies to supply a growing array of biofuel feedstocks, and ethanol fueling infrastructure that is needed to expand the market opportunity for domestically-sourced ethanol and other biofuels.” Fourth, a level playing field is desperately needed in order for more domestic renewable fuels like ethanol to compete in the market.  Dinneen encouraged President Obama to continue his push to eliminate oil industry tax breaks.  “Now is the time to end taxpayer handouts to all oil companies, not just the largest or most profitable, and begin to create the level playing field and free market for which so many anti-ethanol and renewable energy critics claim to desire,” wrote Dinneen.  The entire RFA letter can be read here. 2012-01-20T17:16:12+00:00 http://www.ethanolrfa.org/news/entry/zeachem-latest-advanced-ethanol-leader-to-join-the-aec/ http://www.ethanolrfa.org/news/entry/zeachem-latest-advanced-ethanol-leader-to-join-the-aec/ (January 19, 2012)  Washington – The Advanced Ethanol Council (AEC) is pleased to welcome ZeaChem as a new member. ZeaChem is a developer of biorefineries for the conversion of cellulosic biomass into a diverse portfolio of sustainable fuels and chemicals. “ZeaChem is pleased to join the Advanced Ethanol Council, which has quickly and effectively established itself as a leading voice for the advanced ethanol industry,” said Jim Imbler, President & CEO of ZeaChem Inc. “Our priorities are similarly aligned to accelerate the construction of commercial production facilities, support the production of cellulosic ethanol, and promote the positive benefits of sustainable and economical advanced biofuels.” ZeaChem’s 250,000 gallons per year (GPY) demonstration biorefinery is located in Boardman, Oregon at the Port of Morrow. The company has started core project operations for the production of intermediate chemicals and cellulosic ethanol production will begin this year. A first commercial biorefinery of 25 million or more GPY is currently under development and will be located adjacent to the demonstration facility. “We are very pleased to have ZeaChem on board at the Advanced Ethanol Council (AEC),” said Bill Brady, President and CEO of Mascoma and Chairman of the AEC.  “The next several years are absolutely critical to the evolution of advanced ethanol fuels and technologies, and it is encouraging to see the major players aligning from both an organizational and public policy perspective. ZeaChem is an excellent addition to the Council, and we look forward to working with Jim Imbler and the ZeaChem team on policy and outreach efforts that will put the industry in the best position to succeed in 2012 and beyond.” The Advanced Ethanol Council (AEC), in partnership with the Renewable Fuels Association, represents worldwide leaders in the effort to develop and commercialize the next generation of ethanol fuels, ranging from cellulosic ethanol made from dedicated energy crops, forest residues and agricultural waste to advanced ethanol made from municipal solid waste, algae and other feedstocks. The AEC is the only advanced biofuel group with the singular purpose of promoting advanced ethanol fuels and technologies. Twelve member companies make up the AEC including, Abengoa Bioenergy Corp, Beta Renewables, BlueFire Renewables, Coskata, Enerkem, Fulcrum BioEnergy, Inbicon, Iogen, Mascoma, Osage BioEnergy, Qteros and ZeaChem. Advanced Ethanol Council 2012-01-19T16:23:51+00:00 http://www.ethanolrfa.org/news/entry/rfa-critical-of-effort-to-include-fossil-fuels-in-rfs/ http://www.ethanolrfa.org/news/entry/rfa-critical-of-effort-to-include-fossil-fuels-in-rfs/ (January 18, 2012) Washington - The Renewable Fuels Association (RFA) is rejecting the notion that greater efforts need to be made to include fossil fuels in the nation’s fuel supply.  Specifically, the RFA is very critical of efforts by Texas Republican Rep. Pete Olson and other fossil fuel supporters to modify the Renewable Fuel Standard (RFS) to include ethanol and other fuels produced from fossil fuels like natural gas.  Rep. Olson today introduced a bill called the Domestic Alternative Fuels Act of 2012 (H.R. 3773). “There is nothing renewable about fossil fuels and they have no place in national renewable energy policy.  The RFS has been a very successful tool and remains very critical to the development of truly renewable fuel technologies, like advanced and cellulosic ethanol,” said RFA President and CEO Bob Dinneen.  “We shouldn't be changing the rules of the RFS in the middle of the program because it is working.  It is reducing reliance on imported oil.  Scores of companies have made investments based on the program and new investments in next generation fuels will be chilled if the RFS is fundamentally changed before 2022.” Dinneen continued, “Rather than chasing more fossil fuels down a frack hole, members of Congress seeking to expand fossil fuels’ chokehold on the fuels industry should be supporting efforts like the Open Fuel Standard which would provide consumers with a real choice at the pump and leveling the playing field for fuels by eliminating tax breaks for very mature fossil fuel producers.” 2012-01-18T20:29:52+00:00 http://www.ethanolrfa.org/news/entry/november-ethanol-exports-set-record/ http://www.ethanolrfa.org/news/entry/november-ethanol-exports-set-record/ 2011 Exports Could Exceed 1.1 Billion Gallons (January 13, 2012)  Washington - U.S. exports of denatured and undenatured (non-beverage) ethanol set a new monthly record of 152.5 million gallons (mg) in November, according to government data released this morning. Brazil was the leading destination for U.S. product and accounted for nearly half of total shipments for the month.   Canada, Mexico, and the Netherlands were among other top destinations.  Year-to-date total exports through November stood at 1.02 billion gallons (bg), meaning exports were on pace for a 2011 calendar year total of 1.11 bg. Notably, these exports did not qualify for the ethanol blender’s tax credit, as the ethanol was not blended with gasoline prior to exportation. “Exports have become an important part of the business model for American ethanol producers,” said Geoff Cooper, Vice President of Research and Analysis at the Renewable Fuels Association.  “American ethanol producers are the lowest cost provider of motor fuel today and have ample supplies available to help meet ethanol demand around the globe.  While the preference for American producers would be to use more ethanol domestically through use of higher ethanol blends like E15, E30 and E85, overseas markets will remain a viable and important part of America’s ethanol industry.” In December, Cooper raised the issue of U.S. policies that perversely incent the import of ethanol from Brazil.  Cooper coined the phenomenon the “Ethanol Shuffle".  While import data for November is not yet available, anecdotal evidence suggests the “Ethanol Shuffle” continued in November and will continue into 2012.  On the co-products side, November exports of distillers dried grains with solubles (DDGS) totaled 538,174 metric tons (mt), the lowest monthly tally of the year. China was the top market (140,741 mt), followed by Mexico (117,108 mt), and Canada (53,458 mt). Year-to-date exports of DDGS stood at 7.08 million mt, meaning exports are on pace for 7.72 million mt for the calendar year. That total would be down 14% from 2010’s record exports of 9.03 million mt. For a more detailed analysis go to The E-Xchange Blog. 2012-01-13T15:59:46+00:00 http://www.ethanolrfa.org/news/entry/beta-renewables-joins-aec-in-leading-advanced-ethanol-advocacy/ http://www.ethanolrfa.org/news/entry/beta-renewables-joins-aec-in-leading-advanced-ethanol-advocacy/ (January 11, 2012)  Washington – The Advanced Ethanol Council (AEC) is pleased to welcome Beta Renewables as a new member. Beta Renewables is a leading company in making cellulosic biomass practical and cost-effective for the production of advanced biofuels and biochemicals.  Beta Renewables is a unique $350 million joint venture formed from the Chemtex division of Gruppo Mossi & Ghisolfi and TPG.  Chemtex brings over 60 years of success in process development and commercializing hundreds of plants worldwide. "There are obvious synergies between Beta Renewables' efforts to commercialize ligno-cellulosic bio-ethanol production and the Advanced Ethanol Council's singular focus on developing forward-looking policies and open markets for the advanced ethanol sector,” said Guido Ghisolfi, President and CEO of Beta Renewables. “The Advanced Ethanol Council has put itself at the center of the discussion about promoting both advanced ethanol and advanced biofuels as a whole, and we see our membership with the Council as a critical part of our efforts to further develop Chemtex's PROESA technology and related business platforms in the United States." Beta Renewables has invested over $200 million in the development of its PROESA™ process. The company is currently building the world’s largest cellulosic ethanol facility in Crescentino, Italy, which is expected to be in commercial production in mid-2012. The company has signed a number of PROESA™ technology licensing agreements with U.S. companies and is in the process of bringing its unique processing technology to the U.S. marketplace. “We are very pleased to have Beta Renewables on board at the Advanced Ethanol Council (AEC),” said Bill Brady, President and CEO of Mascoma and Chairman of the AEC.  “Beta Renewables is an excellent addition to our strong and growing membership. As we mature as an industry, it is critical that advanced ethanol interests align from both a policy and open fuel market perspective. We look forward to working with Guido and the Beta Renewables team on policy and open fuel market strategies that will put the industry in a position to succeed in 2012 and beyond.” The Advanced Ethanol Council (AEC), in partnership with the Renewable Fuels Association, represents worldwide leaders in the effort to develop and commercialize the next generation of ethanol fuels, ranging from cellulosic ethanol made from dedicated energy crops, forest residues and agricultural waste to advanced ethanol made from municipal solid waste, algae and other feedstocks. The AEC is the only advanced biofuel group with the singular purpose of promoting advanced ethanol fuels and technologies. Advanced Ethanol Council 2012-01-11T17:09:17+00:00 http://www.ethanolrfa.org/news/entry/cellulosic-ethanol-production-delayed-but-coming/ http://www.ethanolrfa.org/news/entry/cellulosic-ethanol-production-delayed-but-coming/ (January 10, 2012) Washington – Recent reporting, including in the New York Times, accurately points out the current shortfall in cellulosic biofuel production relative to the targets established by the Renewable Fuel Standard (RFS). However, the New York Times is just the latest media outlet to miscast the reasons for delay and the state of the advanced ethanol industry. “In a very difficult financial and policy environment, the first wave of commercial advanced ethanol production facilities are under construction in a number of states across the country,” said Advanced Ethanol Council Executive Director Brooke Coleman. “Diversifying America’s fuel supply with increasing amounts of clean, domestically produced renewable fuel requires us to keep our eyes on the prize and not be distracted by the noise and misdirection coming from naysayers protecting the status quo. “ Coleman continued, “It is important to remember why the RFS is needed. If the market operated based on free market principles, then we would not need blending requirements to force regulated parties to purchase renewable fuels. But instead, the market is controlled by one industry, and few players, who are increasingly reliant on OPEC to secure their product. In turn, we need forceful programs with the right incentives to introduce new fuels made by Americans. That’s what the RFS is, and it’s working.” The U.S. Environmental Protection Agency (EPA) is required by Congress to adjust the RFS cellulosic biofuel blending volumes based on forecasted future available supplies. For both 2011 and 2012, EPA reduced those volumes by over 90 percent to provide relief for regulated parties and simultaneously implement the very type of credit system the oil industry requested to address the inherent market uncertainties of deploying new fuel technologies in the marketplace. For perspective, the anticipated cost for 2011 waiver credits for obligated parties is $6.8 million. In 2010, the three largest publicly traded oil companies reported profits of $58.3 billion. These waiver credits represent approximately .01% of these profits and a pittance compared to the billions of dollars in taxpayer subsidies enjoyed by oil producers. Yet, this provision maintains at least a base level incentive in the marketplace for the oil companies to facilitate rather than obstruct the deployment of advanced ethanol. “We must not let the crocodile tears of a few multi-national oil companies become a Trojan horse for second guessing ourselves on the RFS. The progress of cellulosic ethanol industry has been slower than anyone in the industry would like due to a number of factors outside of their control, but it is simply false to suggest that the technology is not working and the industry is not emerging.” “Today, commercial scale facilities are being built and production is on the way to meet the adjusted requirement in 2012, and hopefully more aggressive requirements in the years to come,” Coleman added. “As crucial chokepoints of world oil supplies are being threatened, America cannot afford to back track on an RFS program that has already dramatically reduced foreign oil dependence and remains a linchpin for local bio-economies all over the country." Advanced Ethanol Council 2012-01-10T22:17:07+00:00 http://www.ethanolrfa.org/news/entry/rfa-reacts-to-carb-appeal-in-lcfs-case/ http://www.ethanolrfa.org/news/entry/rfa-reacts-to-carb-appeal-in-lcfs-case/ (January 5, 2012)  Washington – The California Air Resources Board (CARB) today filed a notice of appeal in the U.S. Court of Appeals for the 9th Circuit to challenge the ruling by U.S District Court for the Eastern District of California Judge Lawrence D. O’Neill that the California Low Carbon Fuel Standard (LCFS) violates the commerce clause of the U.S. Constitution.   Responding to CARB’s filing, the Renewable Fuels Association (RFA) issued the following statement: “RFA spearheaded the efforts at the District Court level in advocating the constitutional challenge under the commerce clause and fully believes the LCFS stands in clear violation.  Judge O’Neill agreed, basing his ruling on strong evidence and sound constitutional law.  In the Court of Appeals, RFA will vigorously defend the result obtained at the District Court level.” The RFA has evaluated the ruling by Judge O’Neill and its implications.  The analysis is available here. 2012-01-05T19:05:09+00:00 http://www.ethanolrfa.org/news/entry/the-2012-crystal-ball/ http://www.ethanolrfa.org/news/entry/the-2012-crystal-ball/ As we noted before Christmas, 2011 was an exciting year for American ethanol production.  Evolutions in the marketplace, advancements in technology, and progress in policy have all set the stage for a new era in American ethanol production.  Gone is the tax incentive that helped build the industry and then was allowed to expire after it had served its purpose.  Also gone is the tariff on imported ethanol.  Still in place, however, are the Renewable Fuel Standard (RFS) and a marketplace that is now comprised of 10 percent ethanol and growing.  With this backdrop, here are five stories to watch for in 2012, in the humble opinion of the RFA: 1.       First commercial availability of E15 blends for MY2001 and newer vehicles.  The RFA is working very hard to finalize federal requirements to certify E15 blends.  Once completed, getting E15 blends into the marketplace becomes a state-by-state march, with some states like Iowa and Illinois ready to go as soon as the federal requirements are completed.  When E15 gallons are first legally available is still up in the air, but we are betting it happens in the first half of 2012. 2.       Free and fair trade of ethanol.  In addition to being the world’s largest producer, consumer, and exporter of ethanol, American ethanol producers are also the lowest cost producer.  With this emergence, new challenges from ethanol interests in other nations have arisen.  Whether it is the European Union anti-dumping investigation or the vacillating ethanol policies in Brazil, a fair resolution to trade challenges will be important to the continued growth and evolution of domestic ethanol production. 3.       “You want the truth?  You can’t handle the truth!”  The upcoming year promises to see a great deal of legal activity surrounding American ethanol use.  The recent ruling by a federal judge that California’s Low Carbon Fuel Standard (LCFS) is unconstitutional will be appealed.  And, arguments in the oil/food processing/environmental lobbying industry lawsuit against EPA’s approval of E15 have yet to be heard.  All of this, as well as international litigation, promises to keep legal beagles busy in the year and years to come. 4.       Wave on wave of RFS challenges.  The conventional wisdom is Congress will accomplish even less in 2012 than it did last year – with it being an election year and all.  While this may prove to be true, it will not stop those who oppose American renewable fuels from seeking to dismantle the RFS.  We expect the barrage of unsubstantiated attacks on the RFS to continue and even intensify as the tax credit that long served as the boogeyman for anti-ethanol interests has expired. 5.       Answering cellulosic ethanol challengers.  Construction is slated to begin on commercial scale cellulosic ethanol biorefineries with production to follow in early 2013.  These facilities would be the first commercial-scale project of their kind in the world.  In order to assure these efforts are successful, Congress must renew key tax provisions for cellulosic ethanol producers before they expire at year’s end.  The RFA, and its partner organization, the Advanced Ethanol Council, will make extending these policies a top legislative priority.    Obviously, there are a host of issues with regard to America’s ethanol and energy sector that will deserve our attention.  Eliminating unnecessary subsidies for the petroleum industry and accurately accounting for carbon emissions from transportation fuels are good examples.  But we believe these five storylines will have the most lasting impact on ethanol production in the U.S. 2012-01-03T19:23:18+00:00 http://www.ethanolrfa.org/news/entry/federal-judge-finds-californias-low-carbon-fuel-standard-unconstitutional/ http://www.ethanolrfa.org/news/entry/federal-judge-finds-californias-low-carbon-fuel-standard-unconstitutional/ (December 29, 2011) Fresno, CA – A judge in Federal District Court in Fresno, California, today sided with America's ethanol industry in ruling that the State of California's Low Carbon Fuel Standard (LCFS) is unconstitutional. Judge Lawrence J. O'Neill agreed with the arguments that the LCFS is in violation of the Commerce Clause the U.S. Constitution. In a joint statement, RFA President and CEO Bob Dinneen and Growth Energy CEO Tom Buis said: "The state of California overreached in creating its low carbon fuel standard by making it unconstitutionally punitive for farmers and ethanol producers outside of the state's border. With this ruling, it is our hope that the California regulators will come back to the table to work on a thoughtful, fair, and ultimately achievable strategy for improving our environment by incenting the growth and evolution of American renewable fuels." The groups filed their suit on December 24, 2009 and asserted that the California LCFS violates the Commerce Clause by seeking to regulate farming and ethanol production practices in other states. The Commerce Clause specifically forbids state laws that discriminate against out-of-state goods and that regulate out-of-state conduct. With its original filing, the groups noted, "The LCFS imposes excessive burdens on the entire domestic ethanol industry while providing no benefit to Californians. In fact, in disadvantaging low-carbon, domestic ethanol, the LCFS denies the people of California a genuine opportunity to clean their air, create jobs, and strengthen their economic and national security. One state cannot dictate policy for all the others, yet that is precisely what California has aimed to do through a poorly conceived and, frankly, unconstitutional LCFS."On this claim the Court found that the LCFS discriminates against out-of-state corn-derived ethanol and impermissibly regulates extraterritorial conduct. As a result, the Court issued an injunction. Judge O'Neill also ruled that CARB failed to establish that there are no alternative methods to advance its goals of reducing GHG emissions to combat global warming.The ruling allows CARB to appeal Judge O'Neill's decision immediately to the U.S. Court of Appeals for the 9th Circuit. RFA and Growth Energy will defend the Judge's decision that the LCFS is unconstitutional in any appeal that may be filed by CARB. 2011-12-29T14:46:38+00:00 http://www.ethanolrfa.org/news/entry/top-5-ethanol-stories-for-2011/ http://www.ethanolrfa.org/news/entry/top-5-ethanol-stories-for-2011/ (December 22, 2011) Washington - America’s ethanol industry has been in a state of rapid evolution since the beginning of 2000.  Record-setting production, policy development, and market expansion have all moved forward with dramatic speed and helped to create the world’s largest, most efficient, most cost effective renewable fuels industry. However, developments in 2011 have set the stage for a new chapter in American ethanol history.  Here are the Top 5 stories of 2011 as seen through the eyes of the Renewable Fuels Association. 1.  EPA gives final approval to E15 for MY2001 and newer vehicles.  For the first time ever, Americans driving conventional vehicles will be provided the opportunity to choose ethanol blends in excess of 10 percent.  While a strong argument could be made for the end of the tax incentive as the year’s top story, the impact of an expanded market through E15 blends will have an exponentially greater impact on the U.S. ethanol market than the temporary adjustment caused by the end of VEETC.  2. End of VEETC and the secondary tariff.  Without protest, U.S. ethanol producers allowed the $0.45 per gallon tax incentive for ethanol blending to expire.  The offsetting secondary tariff on imported ethanol will also expire.  The domestic ethanol industry has evolved, policy has progressed, and the market has changed making now the right time for the incentive to expire.  Ethanol producers never intended for the tax incentive to be permanent.  Like all incentives, it was put in place to help build an industry and when successful, it should sunset.  Unfortunately, the same mentality does not extend to century-old tax subsidies supporting 20th century petroleum technologies. 3. U.S. exports set all-time highs.  As the U.S. worked to move beyond artificial barriers in the domestic market, new international markets emerged as opportunities for domestic ethanol producers.  An estimated one billion gallons of denatured and undenatured ethanol – gallons never blended with gasoline or eligible for the tax incentive – were exported in 2011.  Additionally, U.S. exports of ethanol feed co-products, largely distillers grains, also surged.  An estimated 8-9 million metric tons of this high value livestock feed was exported in 2011. 4. Restarting the advanced and cellulosic ethanol engine.  Weathering the economic collapse of 2008, advanced and cellulosic ethanol producers made big strides in 2011 to bring these promising technologies to commercial production.  A number of advanced and cellulosic ethanol companies, including Abengoa, Coskata, and Mascoma are beginning construction on ethanol biorefineries that will expand America’s ability to fuel its economy with a broader range of renewable feedstocks.  (An RFA side note:  The formation of the Advanced Ethanol Council in partnership with the RFA was a pivotal step forward in forcefully and effectively advocating for the accelerated commercialization of advanced and cellulosic ethanol technologies.) 5. Emergence of the integrated biorefinery model.  Ethanol production is far more than fuel and feed.  Today, approximately 40 percent of all ethanol facilities are capturing and selling corn oil.  An ever-increasing number of ethanol producers are also deploying technologies to produce proteins, biochemicals and other co-products that can further displace oil in marketplace.  Anything made from oil can be made from biomass.  It is matter of know-how and American ethanol producers are proving that it can be done and be done at scale. It is these five developments that defined 2011 and are setting the stage for 2012 and beyond.  In the first week of January, the RFA will be publishing a companion piece to this that looks at the Top 5 stories to watch for U.S. ethanol in 2012. Until then, Happy Holidays from the dedicated staff of the Renewable Fuels Association! 2011-12-22T15:39:16+00:00 http://www.ethanolrfa.org/news/entry/ethanol-growth-not-leading-to-cropland-expansion-new-usda-report-shows/ http://www.ethanolrfa.org/news/entry/ethanol-growth-not-leading-to-cropland-expansion-new-usda-report-shows/ (December 21, 2011) Washington - An in-depth analysis of U.S. land use patterns released today by the U.S. Department of Agriculture shows total cropland decreased by 34 million acres from 2002 to 2007, the lowest level since USDA began collecting this data 1945. The USDA report also shows significant increases in forestland, grassland and rangeland during the five-year period. The Renewable Fuels Association (RFA) said the new report is one more addition to the mounting body of evidence that proves increased ethanol production has not resulted in expansion of total U.S. cropland or a decline in grassland and forest. “Using real data from the real world, this report from USDA shows yet again that U.S. cropland is not expanding in response to increased ethanol demand,” said RFA President Bob Dinneen. “The report also shows that forest and grassland increased dramatically during a period when ethanol production more than tripled. This is more proof that the wild predictions of ethanol causing cropland expansion and conversion of forest and grassland are just plain wrong.” Meanwhile, the report shows land dedicated to urban areas and special-use areas (roads, industrial areas, rural residences, etc.) increased dramatically. “It is ironic that the land use debate has fixated on biofuels, when the actual culprit of land conversion has clearly been urban and suburban sprawl,” Dinneen said. “Subdivisions full of mini-mansions, big box stores, shopping malls, and parking lots are encroaching on productive farmland across the country.” According to the authors, “Urban land acreage quadrupled from 1945 to 2007, increasing at about twice the rate of population growth over this period. Land in urban areas was estimated at 61 million acres in 2007, up almost 2 percent since 2002 and 17 percent since 1990 (after adjusting the 1990 estimate for the new criteria used in the 2000 Census).” The estimated acreage of grassland pasture and range increased by 27 million acres (almost 5 percent) between 2002 and 2007, while forest-use land increased 20 million acres (3 percent) from 2002 to 2007, “continuing a trend that became evident in 2002 and reversing an almost 50-year downward trend.” RFA encourages the policymakers and regulators responsible for penalizing crop-based biofuels for indirect land use change to take a close look at the new USDA report. “There is simply no substitute for real data,” Dinneen said. “Our renewable energy policies and regulations should be based on what is actually happening on the ground, not on hypothetical results from black box economic models.” The USDA report is available here. *Special-use areas include highways, railroads, airports, defense, industrial, parks and other land uses. 2011-12-21T21:39:24+00:00 http://www.ethanolrfa.org/news/entry/rfa-seeks-answers-in-2012-rfs-delay/ http://www.ethanolrfa.org/news/entry/rfa-seeks-answers-in-2012-rfs-delay/ (December 20, 2011) Washington – The Renewable Fuels Association (RFA) today wrote to Environmental Protection Agency (EPA) Administrator Lisa Jackson seeking an explanation for the delay in releasing the 2012 Renewable Fuel Standard (RFS) requirements. According to statute, volume requirements for the coming compliance year were due by November 30th. The entire letter from RFA President and CEO Bob Dinneen to Administrator Jackson is as follows: December 20, 2011 Dear Administrator Jackson: With fewer than two weeks remaining before a new compliance year is set to begin under the Renewable Fuel Standard (RFS), it is concerning that EPA has thus far failed to announce the volume requirements for 2012 as dictated by the law. Equally concerning is the failure to provide renewable fuel providers and obligated parties under the RFS any explanation for the delay beyond the November 30th deadline set forth by the statute. The RFS provides critical market certainty for existing ethanol producers, emerging renewable fuel technologies, and motor fuel suppliers that must comply with the RFS. Additionally, the RFS is an important tool in reducing the nation’s dependence on imported oil and creating domestic jobs and economic opportunities that cannot be outsourced. This market certainty is put in jeopardy as long as questions remain about impending RFS requirements and when those requirements will be made final. With the holidays fast approaching and a new compliance year upon us, we are asking that EPA release its final volume RFS requirements for 2012 as soon as possible. At the very least, EPA should immediately explain the reasoning for the delay, provide guidance to renewable fuel producers and obligated parties, and disclose when release of the final rule might be expected. Quite frankly, this nearly three-week delay in the publication of 2012 RFS requirements is both inexplicable and unacceptable. The members of the RFA and the entire American motor fuels industry eagerly await your reply. Sincerely, Bob DinneenPresident and CEO 2011-12-20T17:07:19+00:00 http://www.ethanolrfa.org/news/entry/ethanol-industry-urges-extension-of-cellulosic-tax-incentives/ http://www.ethanolrfa.org/news/entry/ethanol-industry-urges-extension-of-cellulosic-tax-incentives/ (Dec. 12, 2011)  Washington – Advanced and cellulosic ethanol producers are urging Congress to extend key tax incentives for cellulosic ethanol beyond their expiration date of Dec. 31, 2012.  In a letter sent today to Congressional leaders, the Advanced Ethanol Council (AEC) pressed for the extension of the Cellulosic Biofuels Producer Tax Credit (PTC) and the Special Depreciation Allowance for Cellulosic Biofuel Plant Property. AEC Executive Director Brooke Coleman underscored the importance of these tax incentives, writing that they "are vital to the ongoing development of the domestic advanced ethanol industry. To ensure stability in the marketplace, and prevent unnecessary job losses, Congress should provide long‐term extensions of these provisions (5+ years).” As new ethanol biorefineries are beginning construction, the AEC emphasized the importance of consistent federal policy to this kind of multi-billion dollar investment.  “The advanced and cellulosic biofuels industry is now in the process of building new plants, innovating existing production facilities with emerging technologies, and introducing new product streams that will allow the renewable fuels sector to become more profitable, diversified and efficient,” wrote Coleman.  “Several billion dollars have been invested in advanced biofuels development with the expectation that Congress will stay the course with regard to its commitment to the industry. A tax increase on advanced biofuels at this time would curtail investment and undercut an industry just starting to close deals and break ground on first commercial plants.” The AEC is asking Congress to extend these important tax incentives this year as part of a final tax extenders package as they are set to expire next year.  “As Congress considers the extension of a number of tax provisions for the clean energy sector, we would also like to highlight the importance of timing. The mere prospect of the expiration of the PTC and Special Depreciation Allowance for cellulosic biofuels in 2012 will start to affect projects that take 18 months to build, and could drive our industry into a series of ‘fits and starts’ that has dampened investment in other domestic clean energy sectors for decades.” Advanced Ethanol Council 2011-12-12T21:01:14+00:00 http://www.ethanolrfa.org/news/entry/the-ethanol-shuffle/ http://www.ethanolrfa.org/news/entry/the-ethanol-shuffle/ Flawed carbon accounting schemes at both the federal and state level are creating a dynamic where the U.S. is importing ethanol from Brazil while simultaneously exporting greater volumes back to Brazil. This “ethanol shuffle” is occurring exclusively as the result of state and Federal fuel regulations that “treat Brazilian sugarcane ethanol as if it were the Holy Grail of biofuels,” according to Geoff Cooper, the Renewable Fuels Association’s Vice President of Research and Analysis. In his recent blog post, “The Ethanol Shuffle,” Cooper explores this convoluted trade relationship and how U.S. policy is turning world ethanol markets upside down. The heart of the issue is how both the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) are calculating carbon emissions for corn-based ethanol and Brazilian sugar ethanol.  Under both the federal Renewable Fuel Standard (RFS) and the California Low Carbon Fuels Standard (LCFS), the carbon footprint of Brazilian based sugar ethanol is deemed far superior to corn-based ethanol.  This results in a growing incentive for imports of ethanol from Brazil to meet increasingly aggressive carbon standards.  At the same time, a struggling Brazilian ethanol industry cannot meet its own domestic demand.  As such, Brazilian ethanol producers are finding it more valuable to export their product to America (and the carbon emissions that go with ocean transport) and import growing volumes of U.S. ethanol (and the same carbon emissions). As Cooper writes in his blog, “So, that’s how the “Ethanol Shuffle” works. California imports sugarcane ethanol from Brazil rather than corn ethanol from Nebraska or Kansas; and in turn, corn ethanol from the Midwest travels to Houston or Galveston via rail, then is shipped to Brazil via tanker to “backfill” the volumes they sent to the U.S. Picture the irony of a tanker full of U.S. corn ethanol bound for Brazil passing a tanker full of cane ethanol bound for Los Angeles or Miami along a Caribbean shipping route. Remember, this is all being done in the name of reducing GHG emissions.” Cooper explores just how environmentally destructive this practice can be. Cooper  found that transportation-related GHG emissions more than double in the scenario where California imports Brazilian cane ethanol and Brazil “backfills” those volumes with U.S. corn ethanol imports. And the miles traveled in in this scenario are more than eight times the miles traveled in a scenario where California ethanol demand is met with corn ethanol from the Midwest. There are economic ramifications to the shuffle effect as well. In concept, California gasoline blended with imported Brazilian ethanol has been 16 cents per gallon more expensive than gasoline blended with U.S. ethanol. All of this is compounded by trade distorting practices that the Brazilians discretely engage in to disadvantage U.S. ethanol.  The RFA recently raised this point in a letter to the U.S./Brazil Council. Cooper’s entire post, complete with detailed descriptions of the flawed science promoting this kind of trade, can be read here. 2011-12-12T19:50:18+00:00 http://www.ethanolrfa.org/news/entry/rfa-challenges-u.s.-brazil-council-on-fair-trade-commitment/ http://www.ethanolrfa.org/news/entry/rfa-challenges-u.s.-brazil-council-on-fair-trade-commitment/ (December 8, 2011) Washington – The Renewable Fuels Association (RFA) today wrote to the leadership of the U.S./Brazil Council and the U.S. Chamber of Commerce calling on them to denounce ethanol trade distorting policies in Brazil.  In late November, the groups urged Congress to allow the U.S. secondary tariff on imported ethanol to expire as it is scheduled.  In addition to the inaccurate information about the U.S. and global ethanol market contained within, the letter also failed to address a number of policies in Brazil that are impeding U.S. ethanol exports to that nation. “Please know that while we share your desire for the removal of trade distorting practices between the U.S. and Brazil, we are very concerned about the Council’s singular and biased focus on U.S. ethanol policy, and its failure to address more timely recent trade distorting practices engaged in by Brazil,” wrote RFA President and CEO Bob Dinneen.  Specifically, the RFA pointed out that the U.S. is now a major exporter of ethanol, sending nearly one billion of gallons to overseas markets including Brazil.  The reason for this growth has been U.S.-produced ethanol’s average $0.58 discount to Brazilian ethanol since July 2009 and the poor ethanol productivity of Brazilian sugar mills in recent months.  As such, the RFA expressed disappointment in the letter’s failure to address distorting trade policies in Brazil while inconsistently calling for fair trade. In its letter, the RFA pointed out two very specific actions taken by Brazil that limit U.S. access to that market. “First, Brazil has recently taken an action that has no other reasonable justification than to reduce the volume of U.S. exports of ethanol to Brazil.  Recently, the Brazil government reduced the volume of ethanol that can be blended in fuel from 25% to 20%.  As a result of this mandated reduction in blend volumes, U.S. exports of ethanol to Brazil are being dramatically reduced from levels that would have otherwise occurred had Brazil left the mandate at 25%,” the RFA pointed out.  The result has been an increase in Brazilian imports of dirtier, more expensive petroleum-based fuels.  “Second, while your letter to Congress is correct to state that Brazil’s 20% import tariff has been suspended, you fail to further explain that this suspension was only on a temporary basis.  While Brazil’s Chamber of Foreign Trade (CAMEX) did indeed reduce its tariff in April of 2010, the temporary suspension is scheduled to expire one day after the U.S. tariff is set to expire,” the RFA pointed out.  The RFA encourages these groups to urge the Brazilians to make their intentions known on this distorting practice. The U.S. secondary tariff on imported ethanol is set to expire at the end of this year.  So, too, is the tax incentive for which the tariff was implemented to offset.  The RFA is not advocating for the extension of either one.  However, the RFA believes it would be smart trade policy for Congress to allow the U.S. Trade Representative the authority to negotiate away the U.S. secondary tariff in exchange for the removal of ethanol trade barriers in other nations, like those described above.  In conclusion, the RFA wrote, “If the U.S. Chamber’s Brazil U.S Council is truly concerned about removing barriers to trade between the two countries, it would certainly be better served by addressing barriers that exist on both sides of the trade relationship.  We would also expect the Council to issue the same missive to decision makers in Brazil, and support the U.S. ethanol industry’s efforts to remove barriers to our exports.  Trade with Brazil must be free and fair.” 2011-12-08T17:46:54+00:00 http://www.ethanolrfa.org/news/entry/rfa-corrects-record-in-letter-to-senate-committee/ http://www.ethanolrfa.org/news/entry/rfa-corrects-record-in-letter-to-senate-committee/ (December 5, 2011) Washington – Critics of biofuels miss few opportunities to mischaracterize scientific studies and comments in their quest to demonize domestic production of ethanol and other renewable fuels.  In a letter to the Senate Environment and Public Works Committee leadership on November 30, a group of usual anti-ethanol suspects grossly misrepresented the finding of two recent papers on American biofuels and American biofuel policy – one from the National Academies of Science (NAS) and one from United Nations Committee on Food Security (CFS).   These groups, including corporate livestock, food manufacturing, fossil fuel production, and other industries, are seeking a hearing on domestic biofuels and the Renewable Fuel Standard (RFS).  Clarifying the record, the Renewable Fuels Association today sent a letter to the same EPW Committee leaders that directly refutes the statements made in the November 30th letter and provides additional research confirming the benefits of domestic biofuel production. “A recent letter to you from several anti-biofuel organizations grossly misrepresented and distorted the findings of recent studies by the National Academies of Sciences (NAS) and United Nations Committee on Food Security (CFS),” wrote RFA President and CEO Bob Dinneen.  “We are writing to address the letter’s obvious mischaracterizations of these two studies, particularly as they relate the Renewable Fuel Standard (RFS).  Judging by their erroneous description of the studies’ key conclusions, it seems the authors of the November 30th letter likely did not even read the studies to which they refer." Specifically, the RFA took exception to assertions made in the November 30th letter that the NAS study offered definitive conclusions about the environmental impacts of ethanol or the efficacy of the Renewable Fuel Standard (RFS).  “While the November 30th letter suggests the NAS report offers definitive conclusions about the environmental impacts of biofuels, the co-chairs of the panel distinctly emphasize in the study’s preface that ‘…our clearest conclusion is that there is very high uncertainty in the impacts we were trying to estimate.  The uncertainties include essentially all of the drivers of biofuel production and consumption and the complex interactions among those drivers: future crude oil prices, feedstock costs and availability, technological advances in conversion efficiencies, land-use change, government policy, and more.’,” the RFA pointed out.    The RFA also highlighted a finding of the NAS report conveniently omitted in the November 30th letter that  “…using biofuels holds potential to provide net environmental benefits compared to using petroleum-based fuels…”.  Some of the participants in the NAS research work have also questioned its applicability given its incompleteness and lack of definitive conclusions.  “For example, it has been reported by the American Association for the Advancement of Science (publishers of the journal Science) that Dr. Virginia Dale, an ecologist at the DOE’s Oak Ridge National Laboratory, believes the NAS report “is not based on the most current information” and could be "misleading if the assumptions of the analysis are not considered.”   Dr. Dale encouraged readers to “read the details with care,” an admonition the authors of the November 30th letter clearly ignored,” the RFA wrote.  Regarding the UN CFS study, the RFA noted that no mention of the RFS or specific biofuel policies were included in the study.  “In fact, the brief CFS report, which simply summarizes recent discussions by the committee’s expert panel on food security and nutrition, doesn’t even mention the RFS a single time,” the RFA wrote.  “Moreover, in regard to biofuels, the report recommends only that the expert panel should consider a review process that considers both the positive and potentially undesirable impacts of biofuel policies around the world.  Much more of the report is focused on constructive recommendations to address food security concerns, including reducing food waste and post-harvest losses, “tightening up” speculation on the futures market to “avoid price manipulations,” revisiting international trade rules, increasing investment in agriculture technology and research, and other actions that impact global food security.” The RFA believes that this letter and the claims made by these groups do not warrant a hearing by the Senate EPW committee.  However, the RFA concluded that “should your Committee decide that hearings are indeed warranted, we ask that your witness lists be fairly balanced to include representatives from the biofuels industry, and academics such as Dr. Dale who understand the enormous promise of biofuels.” 2011-12-05T17:58:45+00:00 http://www.ethanolrfa.org/news/entry/rfa-responds-to-eu-ethanol-investigation/ http://www.ethanolrfa.org/news/entry/rfa-responds-to-eu-ethanol-investigation/ (November 28, 2011) Washington – On November 24, the European Union (EU) initiated anti-dumping and countervailing duty investigations regarding U.S. exports of ethanol to Europe and current U.S. policies surrounding ethanol production and use.  Specifically at issue is the expiring volumetric ethanol excise tax credit, or VEETC, available to blenders of ethanol and gasoline.  Allegations by EU ethanol producers suggest that U.S. ethanol exports to Europe are taking advantage of the tax incentive before export, thus lowering its price and harming EU ethanol producers.  The Renewable Fuels Association (RFA) responded to these allegations when the first complaint was filed here. Responding to the launch of the EU investigations, the RFA issued the following statement: “The RFA is working with other industry groups to encourage all U.S. ethanol producers to cooperate with the EU investigations.  The RFA will continuously monitor the status of these investigations and will take any necessary steps to ensure the U.S. ethanol industry is not unjustly penalized. “Importantly, domestic ethanol producers are not eligible for VEETC. That tax incentive is specifically made available to gasoline blenders, marketers, and other end users. Therefore, we believe that U.S ethanol producers should not be the focus of any potential European action.  Moreover, VEETC will expire at the end of 2011, rendering the VEETC portion of this investigation and complaint irrelevant moving forward.” 2011-11-28T17:10:08+00:00 http://www.ethanolrfa.org/news/entry/rfa-statement-on-supercommittee-progress/ http://www.ethanolrfa.org/news/entry/rfa-statement-on-supercommittee-progress/ (November 21, 2011) Washington – The apparent failure of the so-called supercommittee to find the required $1.2 trillion in budget savings is not coming as a surprise to many inside the Beltway.  The failure to produce legislation, however, does raise questions about what bills Congress will consider in the final weeks of the year.  Specifically, speculation is swirling about possible bills to extend expiring tax provisions including those for ethanol blending. Responding to the supercommittee failure and the uncertainty left in its wake, the Renewable Fuels Association issued the following statement: “The supercommittee’s success or failure has little bearing on American ethanol production.  When the forward-looking compromise on ethanol tax incentives reached this summer by Senators Thune and Klobuchar was no longer a viable option, lawmakers and the ethanol industry alike moved forward with the understanding that the existing blenders’ credit and secondary tariff on imported ethanol would expire at the end of the year.  That continues to be the case today.  The RFA will continue to seek opportunities to accelerate the commercialization of cellulosic and advanced ethanol production and modernize America’s fueling infrastructure through the installation of blender pumps and other alternative fuel infrastructure. “Unfortunately, the supercommittee’s failure to move forward on budget-balancing policies likely means that American taxpayers will continue to subsidize very mature oil and fossil fuel technologies to the tune of billions of dollars a year.  Only when a truly level playing field in energy exists can the full economic, environmental and energy security benefits of ethanol and renewable fuels be fully realized.”  2011-11-21T21:41:16+00:00 http://www.ethanolrfa.org/news/entry/rfa-sensenbrenner-e15-bill-missing-the-point/ http://www.ethanolrfa.org/news/entry/rfa-sensenbrenner-e15-bill-missing-the-point/ (November 15, 2011) Washington – The Renewable Fuels Association has labeled yet another attempt by Rep. Jim Sensenbrenner (R-WI) to deny American consumers the choice of using E15 ethanol blends as “missing the point.” The Sensenbrenner bill would modify the Clean Air Act to force the U.S. Environmental Protection Agency to include fuel efficiency and engine durability testing as part of its efforts to certify new fuels.  Rep. Sensenbrenner contends that Americans should have “trust” in their fuels, implying that EPA’s recent approval of E15 ethanol blends is not trustworthy. Responding to this shortsighted approach, the RFA issued the following statement: “Congressman Sensenbrenner is missing the point with his attempts to thwart America’s expanded use of domestically-produced renewable fuels.  Not only has EPA thoroughly tested E15 – enough to make approximately 4,700 round trips from Washington to Milwaukee – it has carefully crafted a label and misfueling plan to ensure that consumers are properly and legally using increased levels of ethanol in gasoline.  The RFA believes that American drivers and consumers are smart enough to follow directions. “More to the point, ethanol has been a proven fuel in the U.S. for 30 years with all autos and most marine and small engine makers approving the use of 10% ethanol.  To suggest that ethanol is a fuel Americans cannot trust is flat out wrong.  The real question about trust should focus on what Congress is trying to do to make America less reliant of imported oil.  Amendments like this do nothing to reduce the flow of American wealth to hostile nation’s seeking to do us harm.”    2011-11-15T19:30:06+00:00 http://www.ethanolrfa.org/news/entry/iea-rising-demand-and-declining-resources-confirms-the-end-of-cheap-oil/ http://www.ethanolrfa.org/news/entry/iea-rising-demand-and-declining-resources-confirms-the-end-of-cheap-oil/ (November 10, 2011) TORONTO, Canada – Today’s release of the IEA’s annual World Energy Outlook in London has again confirmed the end of cheap oil blaming growing energy demand and declining oil reserves. According the Report, oil demand will rise 14% between 2010 and 2035, from 87 million barrels per day (mb/d) in 2010 to 99 mb/d in 2035. All net increases in oil demand will come entirely from the transportation sector in emerging economies as economic growth pushes up demand for personal mobility and freight goods. “This is a deeply disturbing picture that the IEA has painted for the world,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance. “Such increases are unsustainable making it imperative that all countries quickly bring real crude oil alternatives to market,” added Baker. To compensate for declining crude oil production at existing oil fields, the Report claims that 47 mb/d of oil production must be discovered and brought to market by 2035. That will mean new reserves will have to be exploited – namely environmentally damaging tar sands or dangerous deep well oil. “This means that the equivalent of two times the current total oil production of all OPEC countries in the Middle East will need to be discovered just to meet growing demand,” declared Mr. Baker. “This is a wakeup call to the world that we need to further promote biofuels to meet this ever growing energy demand,” added Mr. Baker. Equally troubling in the Report is the reference to a growing dependence on OPEC countries as a supplier of the world’s oil.  According to the IEA, over 90% of the required growth in world oil output will come from OPEC countries, pushing the share of OPEC in global production above 50% by 2035. The IEA also highlighted the potential for supply disruptions in the Middle East and North African countries as a potential threat to world oil supplies saying that “If, between 2011 and 2015, investment in the MENA region runs one-third lower than the $100 billion per year required…consumers could face a substantial near-term rise in the oil price to $150/barrel.” “The justification for significant investments in crude oil alternatives such as the ethanol and biodiesel sectors have never been more clear,” said Mr. Baker. “Biofuels production can help mitigate all these risks related to oil dependency – but we must take decisive action today to grow this vitally important industry,” concluded Mr. Baker. The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 65% of the global biofuels production from 44 countries. Through the development of new technologies and best practices, the Alliance members are committed to producing renewable fuels with the smallest possible footprint. For More Information Please Contact: Bliss Baker Global Renewable Fuels Alliance Work: (Country Code “1”) 416-847-6497 Mobile: 647-309-0058 Email: info@globalrfa.org http://www.globalrfa.org 2011-11-10T20:46:37+00:00 http://www.ethanolrfa.org/news/entry/rfa-responds-to-allegations-for-european-ethanol-producers/ http://www.ethanolrfa.org/news/entry/rfa-responds-to-allegations-for-european-ethanol-producers/ (November 2, 2011) Washington – A press statement from the European ethanol association ePure today confirmed they are requesting an investigation into U.S. ethanol tax policy and trade.  At issue is a European allegation that international ethanol traders were exporting E90 (90 percent ethanol blends) to Europe to take advantage of the European Union’s (EU) lower tariff on such blends as well as the tax incentive for ethanol blending in the U.S. – the $0.45 per gallon incentive known as VEETC set to expire at the end of this year. In response to ePure’s press statement, the Renewable Fuels Association (RFA) issued the following statement: “Based upon our research and work with the International Trade Commission (ITC), the RFA has neither discovered nor been provided any evidence by the EU or any other entity that such ethanol trades are occurring.  Moreover, the U.S. ethanol tax incentive that lies at the root of the European allegations will expire at the end of 2011, rendering the tax incentive portion of the alleged trading impossible in the future.  “Importantly, domestic ethanol producers are not eligible for the tax incentive referenced by the Europeans. That tax incentive is specifically made available to gasoline blenders, marketers, and other end users. Therefore, U.S ethanol producers cannot nor should not be the focus of any potential European action. “To be clear, all ethanol producing nations and regions provide incentives.  Nations of the European Union are no different.  The fact of the matter is U.S. ethanol remains the lowest cost, most cost effective ethanol in the market today.  This fact has led to a surge in U.S. ethanol exports to Brazil, Europe, Asia, and the Middle East.  Those volumes, as reported by the ITC and the RFA are denatured and undenatured volumes that have not received any tax incentive.  To date, the RFA has not found nor been provided any evidence the alleged trades of ethanol blended with gasoline have occurred. “The RFA will thoroughly evaluate any action that may emanate from the EU.  The more salient issue, as the RFA has long pointed out, is the EU tariff schedule that encourages the import of E90 blends by classifying them at a lower tariff rate than other ethanol imports.  Based upon any claims made, the RFA will work with U. S. trade officials to take the appropriate steps.” 2011-11-02T20:13:14+00:00