National Ethanol Vehicle Coalition - FYI Newsletter, Volume 7, Issue 1

January 2, 2002

In This Issue.  .  .

MINNESOTA MAN SHOWS SUPPORT OF E85

Not only did A.J. Moses rent an FFV (battling the rental company to get it) and drive 1000 miles on E85, hanging new E85 banners at stations as he traveled, he also received approval from federal buildings/grounds folks to hang new metal parking lot signs.   No small task -- made more complicated after 9-11.   These signs urge federal E85 vehicle drivers to “refuel flex-fuel vehicles with E85 motor fuel” as required by Ex Order 13149.  Plastic versions of the sign may also be hung at key indoor locations.

A.J. is an employee of the General Services Administration and works in Minneapolis/St. Paul in the GSA Fleet Program.  AJ has been a leader and innovator in the GSA by “making it happen”.

The 1 millionth gallon of Minnesota E85 will be pumped at one of its 65 outlets by January 7.  About 550,000 gallons will be sold (based on MN Dept of Commerce stats and estimates from non-reporting locations). In 1999, about 75,000 gallons were sold.

Kudos to Mr. Moses for his determination and support of E85!

Crude Oil Price Jumped the Highest in One Year

Prices for crude oil recorded their largest jump of the year on the New York Mercantile Exchange on December 27 of last year, as traders became increasingly convinced that oil-producing nations would follow through on plans to cut production in this month.

The Organization of the Petroleum Exporting Countries announced in November of 2001 that it intended to cut output by 1.5 million barrels a day to reverse the 24 percent slide in oil prices since the Sept. 11 terrorist attacks, but the plan was contingent on persuading non-OPEC producers — led by Russia, Mexico and Norway — to cooperate by cutting their production by another 500,000 barrels.

Prices for crude oil to be delivered in February, 2002 reached $21.43 during the day — their highest level in more than a month — before settling back to $20.27 a barrel. That was still an increase of $1.65 a barrel, or 8.4 percent higher than the closing price on December 21, 2001, the last day of trading before the Christmas holiday. Heating oil for delivery in January also jumped 8.4 percent on the Nymex, closing at 59.46 cents a gallon.

Americans Favor Alternative Energy

In a November 8-11, 2001 poll conducted by the Gallop News Service, 91% of those contacted expressed their support for investments in alternative power sources.  This includes the development of solar, wind, and fuel cell technology.

The same poll indicates that Americans continue to oppose opening the Artic National Wildlife Refuge to oil exploration.  Gallop contacted 512 adults and the sample margin of error of 5%.

Clearly the majority of the nation believes that the United States should expend additional resources to develop and commercialize alternative energy sources.  E85 can and should be a major contributor to such a program.

New Ethanol Study Finds Increased Use of Renewable Fuels Will Benefit the Economy

A report by United Press International reported that a study out of Los Angeles concluded that a government mandate for increased use of renewable fuels in gasoline would bring great economic benefits to the U.S. over the next 15 years.

An analysis of the economic and national security aspects of the renewable fuel standard found that a proposed increase in the amount of ethanol used nationwide to 8.8 billion gallons by 2016 would both cut oil imports by nearly 302 million barrels per year and create as many as 300,000 new jobs.

"A renewable fuels standard, as proposed by Senators Chuck Hagel, R-Neb., and Tim Johnson, D-S.D., would reduce our dependence on foreign oil, improve our trade deficit, boost farm income, create new opportunities for rural businesses, and reduce farm program costs," said John McClelland, director of energy and analysis for the National Corn Growers Association.

The survey was released when Senate Democrats introduced their version of an energy bill, which provides for increased use of renewable fuels.

This survey was based on a 4 percent increase in the amount of renewable fuels used in the U.S., the primary of which is corn-based ethanol that is used as a clean-burning oxygenate in gasoline. Such an increase would lead to the use of 7.6 billion gallons by 2016.

The ethanol industry and the Midwest farm states have been eagerly anticipating a major increase in the use of their product, particularly since the petrochemical MTBE, the other major gasoline oxygenate currently in use, has been in disfavor due to groundwater contamination and possible links to cancer.

The oil industry, which prefers MTBE to ethanol due to chemical characteristics that make it easier to blend, has argued that the cancer link is not proven and that groundwater problems can be eliminated by fixing leaky underground storage tanks. The Oxygenated Fuels Association has warned that switching to ethanol would cause a number of supply problems and would add to the cost of gasoline.

There were also concerns that the nation's capacity to produce ethanol is still too small to support such a switchover, particularly in California where Gov. Gray Davis is expected to decided in a few weeks whether to continue with the phasing out of MTBE in his state or to push the deadline back in order to give supply more time to catch up with the state's potentially enormous demand.

"We have a real opportunity to stop the growth in imported energy," said Bob Dinneen, president of the Renewable Fuels Association. "The ethanol industry is prepared to build on our growth of the last two years. We urge Congress to take this historic opportunity to enhance energy independence, boost farm income, and promote a renewable, clean-burning fuel."

E85 Workshops to Be Scheduled

The National Ethanol Vehicle Coalition, along with the U.S. Department of Energy, is making plans to conduct E85 workshops in Denver and Salt Lake City.  The workshops will include discussions on all forms of alternative fuels, but will mainly focus on E85.

The first of the workshops will be held in Denver the week of February 5, 2002.  Both Federal and State fleet drivers will be included in these events.  The efforts will concentrate on the reasons why Denver and Salt Lake need to use alternative fuels, (i.e. reducing winter pollution), the locations of new fueling sites, and the federal and state requirements concerning the use of alternative fuels.  The workshops will be co-hosted by the General Services Administration.

More information will be offered when it becomes available. See our web site for the latest developments on these workshops.

Minnesota Mayor in the Market for E85 Vehicle

from Rochelle Olson’s article in the Star Tribune, Tuesday December 18, 2001

Minnesota’s new elected Mayor R.T. Rybak hopes his choice of official vehicle leads to a “green” purchasing strategy for the city.

Rather than a gasguzzling sedan, Rybak is in the market for an American-made car powered by ethanol. 

The symbolism of the mayor behind the wheel of an alternatively fueled vehicle is significant, Rybak said.

Mayor Rybak’s predecessor Mayor Sharon Sayles Belton rides in a Ford Crown Victoria, a vehicle that gets just under twenty miles per gallon.

The NEVC would like to express our appreciation and thanks to Mayor Rybak for exhibiting such leadership in the use of alternative fuels.  What kind of vehicle does your Mayor drive?

Missouri State Budget Cuts Hit Ethanol Fund

On Saturday, December 15, 2001, Missouri Department of Agriculture Director Lowell Mohler announced the recent round of state budget cuts may affect the Missouri Qualified Ethanol Producer Incentive Fund.  Speaking before the Missouri Corn Growers Association board of director's meeting, Mohler acknowledged that while the ethanol fund had escaped earlier cuts, $500,000 of General Revenue funding from the ethanol fund would be held in reserve until the end of the budget year and be cut if necessary to help balance the state budget.  The ethanol fund helps support ethanol production in the state of Missouri.  According to industry estimates, the fund contains less than two-thirds of the money necessary to fully fund the authorizing legislation.  MCGA will continue work with the Department of Agriculture, as well as others in the Holden Administration and the General Assembly, to seek a long-term funding mechanism for the ethanol fund.

Appropriation Grant Application

On December 27, 2001 the U.S. Department of Energy issued two grant solicitation announcements seeking proposals during 2002.  The DOE issued the 2002 Broad Area Announcement and the 2002 State Energy Program Announcement.

As a result of the efforts of the members and partners of the National Ethanol Vehicle Coalition during the 2002 program, funds have been specifically set aside for E85 projects.  During the past session of the U.S. Congress, the NEVC had been seeking an appropriation to support E85 development activities and the DOE has now made these funds available.

Both solicitations can be located at http://www.ccities.doe.gov/support.shtml.  Additionally, in mid-January, the NEVC will be assisting the Dept. of Energy by hosting conference calls with groups from around the nation that have an interest in seeking funds to advance the installation of E85 fueling systems.  The dates, times, and phone numbers to participate in these informational calls will be announced soon.

For more information regarding the E85 infrastructure solicitation, please contact Michelle Saab at the NEVC.

NEVC Calendar

January 6-7, 2002

Farm Bureau Showcase 2002 at the Reno Hilton Hotel in Reno, Nevada.  Contact Marsha Purcell, Showcase Manager at (847) 685-8764 or at marshap@fb.org for questions.

January 9-12, 2002

PMAA Motor Fuels & Lubes Conference at the Camelback Inn Marriott resort, Golf Club & Spa in Scottsdale, Arizona.  For registration or more information, visit http://pmaa.org/public/meet/.

February 21-23

Commodity Classic at the Opryland Hotel in Nashville, Tennessee.  Visit www.commodityclassic.com to learn more.

February 26-28

Western Petroleum Marketers and Convenience Store Expo at the MGM Grand in Las Vegas.  For more information, call 1-888-852-5550.

February 27-March 1, 2002

7th Annual National Ethanol Conference:  Policy and Marketing at Loews Coronado Bay Resort in San Diego, California.  For more information contact Fenella Furgerson at (719) 942-4353 or at fenella@bbiethanol.com. Also, visit http://www.bbiethanol.com/nce.

March 1-4, 2002

National Farmers Union Annual Meeting and 100th Anniversary in Irving, Texas.  For registration or more information visit http://nfu.org/index.cfm?category=membership&title=convention.

May 12-15, 2002

8th National Clean Cities Conference and Expo at the Myriad Convention Center in Oklahoma City, Oklahoma.  For more information, visit http://www.ccities.doe.gov/okconference.shtml.

June 9-11

12th Annual EPAC sponsored Ethanol Conference in Whitefish, MT.  A Golf Tournament will take place June 9 and the conference will be held June 10-11.

Visit www.ethanolmt.org for more information.

June 25-28, 2002

18th Annual International Fuel Ethanol Workshop and Trade Show at the Crowne Plaza Springfield in Springfield, Illinois.  For more information and to register, go to http://www.bbiethanol.com/few.

Contact Us. . .

Please feel free to e-mail your story suggestions to us at info@e85fuel.com or call us anytime.

Phillip J. Lampert, Executive Director - info@e85.com

Michelle Saab, Director of Communications - info@e85.com

 Randa Barker, Director of Administration - info@e85.com