National Ethanol Vehicle Coalition - FYI Newsletter, Volume 7, Issue 2, January 15, 2002

In This Issue.  .  .

Suit Filed Against Bush Administration on Alternative Fuel Law

Three environmental organizations filed suit January 1, 2002 alleging the Bush administration is violating a Gulf War-era alternative fuels law signed by President Bush's father.

The suit filed in federal court in San Francisco accuses 18 federal agencies of failing to follow the 1992 Energy Policy Act, which requires federal agencies to buy vehicles that run on alternative fuels. Agencies with vehicle fleets in larger cities were required to phase in purchases of alternative fuel vehicles starting in 1996, with 75 percent of the vehicles to use alternative fuels by 1999 and thereafter.

However, the environmental groups note that the law allows the agencies to buy vehicles that can use alternative fuel, but does not require the vehicles to actually run on the alternative fuel. They contend some agencies have bought vehicles that will run on either gasoline or ethanol, but then run them on gasoline.

That, the groups allege, violates both the law's goal of cutting the use of petroleum and a 2000 Presidential Executive Order.

Among the alleged violators is the U.S. Department of Energy, which is charged with enforcing the act. Others include the Departments of Justice, Transportation, Commerce, Defense, Agriculture, Interior, and the Environmental Protection Agency.

Earthjustice attorney Jay Tutchton accused the agencies of "wholesale noncompliance" with the law. The environmental law firm is representing the Center for Biological Diversity, Bluewater Network and the Sierra Club in this suit.

For instance, the suit alleges the Department of Commerce purchased only 17 percent alternative fuel vehicles in 2000. The suit alleges the EPA purchased 35 percent alternative fuel vehicles in 1998, well short of the 50 percent then required by the law.

Saving Money From Renewable Fuels

- from Environment News Service on January 4, 2002 by Cat Lazaroff

Energy legislation emphasizing renewable fuels could help boost the U.S. economy by $300 billion and create as many as 300,000 new jobs by 2016, an independent analysis suggests. The study, sponsored by the National Biodiesel Board, finds that increased use of American made fuels such as biodiesel and ethanol would generate an additional $71 billion over the next fifteen years.

The AUS Consultant’s study assumes that the nation will reach goals such as meeting 1.2 percent of the nation's vehicle fuel needs with renewable fuels in 2002, increasing to four percent by 2016. The four percent level would displace the annual equivalent of 302 million barrels of crude oil by 2016, or almost 2.9 billion barrels of crude oil between 2002 and 2016.

"Relying on renewable fuels for an increasing share of our transportation fuel requirements means that every acre of land that produces biomass used to make a renewable fuel ethanol becomes an oil patch that never runs dry," the report states.

The study suggests that taxpayers would benefit from increased renewable fuels use, because increased demand for farm crops would decrease the need for government farm subsidies, in some scenarios by up to $7.8 billion between 2002 and 2016.

Soybean prices are projected to increase by an average of 68 cents per bushel. Corn prices could rise by more than 11 percent, as demand for corn for ethanol production rises from 652 million bushels in 2002 to nearly 2.5 billion bushels by 2016, the report projects.

The production of biodiesel and ethanol would add $6.6 billion in annual cash income to farmers, for a total of $99 billion by 2016.

Energy packages now under consideration by the Senate would promote U.S. energy independence by having a percentage of U.S. motor fuels contain either biodiesel or ethanol. Based on U.S. Department of Energy projections, AUS Consultants looked at legislation sponsored by Senators Chuck Hagel, a Nebraska Republican, and Tim Johnson, a South Dakota Democrat.

"With U.S. dependence on foreign oil at an all time high and increasing, we must look for alternative forms of energy," said Hagel.

I believe renewable fuels such as ethanol and biodiesel should be the centerpiece of our future energy strategy, because these fuels are home grown solutions," Johnson added.

Since the study was completed, Senate Majority Leader Tom Daschle has introduced another bill that includes even more support for alternative and renewable fuels.

Not everyone agrees that requiring the use of renewable fuels such as ethanol would be good for the nation. In December, a coalition of highway users, a construction union, small businesses, gasoline marketers, oil refiners, petrochemical manufacturers and oxygenated fuel manufacturers sent a letter to the Senate leadership warning that mandating ethanol use in transportation fuels would have "serious, adverse consequences on the U.S. economy, environment and fuel supply."

The letter, copies of which were sent to every member of the Senate, urged Senators to reject proposals to incorporate an ethanol mandate in Senate energy legislation. The letter argued that the mandate would increase fuel costs to consumers, because ethanol is currently twice as expensive as the gasoline it is intended to displace.

The mandate would also pose problems for the environment because the volatility of ethanol blends could increase air pollution, the coalition charged.

But conservation groups welcome the Senate's consideration of ethanol mandates and other measures which would increase renewable fuel use.

New E85 pumps to be opened in St. Louis and Salt Lake City

Two new E85 pumps are to be opened by the end of this year in St. Louis, Missouri and Salt Lake City, Utah.  The Mobil refueling station at 624 North New Ballas Road in St. Louis and the Texaco refueling station at 1350 East 700 South in Salt Lake City will offer E85 along with their many other conveniences. 

The NEVC is excited that these stations are joining us in our effort in providing E85 to the public!

GOVERNOR HOLDEN NAMED CHAIRMAN OF GOVERNORS’ ETHANOL COALITION

In mid-December of 2001, the Governors’ Ethanol Coalition named Governor Bob Holden of Missouri the new chairman of the 25-state Governors’ Ethanol Coalition for 2002.  Holden served as vice chairman for 2001 and therefore automatically becomes chairman for the following year.  The multi-state coalition works to increase the use of ethanol-based fuels, to decrease the nation's dependence on imported energy resources, improve the environment and stimulate the national economy. 

IOWA GASOLINE DEALERS TO RECEIVE ETHANOL TAX INCENTIVE IN 2002

- from Oxy-Fuel News, December 31, 2001 by  Rachel Gantz 

Starting January 1, 2002, Iowa retail gasoline dealers will be able to take advantage of a new ethanol tax incentive, assuming more than 60% of their annual gasoline sales involve ethanol-blended fuel, the state Secretary of Agriculture reminded dealers.

The incentive, recently passed by the Iowa legislature and signed into law, would give gasoline dealers a tax credit of 2.5 cents, multiplied by the total gallons of ethanol-blended fuel it sold during the tax year, in excess of 60%.

For example, if a dealer sold 100,000 gallons of gasoline at the service station during the tax year, 70,000 gallons of which were ethanol-blended, the dealer would be eligible for the tax credit. The number of gallons sold in excess of 60% would be 10,000, and two and one-half cents multiplied by 10,000 equals a $250 tax credit.

Ethanol production is growing rapidly in Iowa, according to the agriculture secretary. In 2000, 779 million gallons of ethanol-blended fuel were sold in Iowa, a 111 million gallon increase over the previous year.

Patent is Granted for Product to Convert Carbonaceous Material into Ethanol

-from Power Energy Fuels, Inc. on January 10, 2002

Power Energy Fuels, Inc. has recently been granted a patent on a revolutionary new technology that will convert any carbonaceous material into an ethanol product trademarked Ecalene™.

Imagine creating a clean burning automotive fuel from the garbage, wood, agricultural, or animal waste produced daily in every corner of the world - or from the methane gasses these pollutants create in our dwindling landfills. The Power Energy System™ performs based on the following feedstocks and consistently demonstrates a return on investment of 25% or more. 

For additional information please reference: www.powerenergy.com.

NEVC Meets with Petroleum Marketers Association

On January 11, 2002 the National Ethanol Vehicle Coalition made a presentation to the PMAA “Motor Fuels and Lubes Conference” which was held in Scottsdale, Arizona.  Phil Lampert, Executive Director of the NEVC, was invited to discuss the opportunities provided by E85.  In addition to the E85 presentation, PMAA also heard from representatives of the National Biodiesel Development Board.  The title of the session was “Going Green:  Opportunities for Biodiesel and E85!”

According to Lampert, the session was very well attended with a great deal of interest being exhibited.  “As one marketer commented, ‘what difference should it make to us what kind of fuel we sell, as long as we sell fuel?!’”  Much of the discussion centered on the prospects for additional federal intervention into the transportation fuel business in the form of a new energy bill that has passed the House and is pending in the Senate.  Most of the marketers in attendance felt that it was very likely that with the events of September 11, 2001 and other national security issues, a national energy strategy would be approved by the Congress that significantly advances alternative fuels.

DID YOU KNOW?

* look for more DID YOU KNOW in future issues of FYI

NEVC Calendar

February 7, 2002

FREE NEVC and U.S. DOE sponsored alternative fuel workshop from 8:00 a.m. to 12:00 p.m. at the Holiday Inn Denver West Village at 14707 West Colfax in Golden, CO.  Breakfast will be provided.  For more information, contact Michelle Saab at info@e85.com. 

February 13, 2002

The Northeast Ohio Clean Fuels Coalition Clean Fuel Seminar at Burke Lake Front Airport at 1501 N. Marginal Rd. in Cleveland.  Call Clean Cities Coordinator Stephanie Strong with questions at 216-281-6468.

February 21-22

The Mid-Atlantic Regional Distributed Energy Resources Workshop at the Sheraton Rittenhouse Square Hotel in Philadelphia, PA.  Contact MaryLee Blackwood at (410) 953-6277 for more information.

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.  The Governor’s Ethanol Coalition meeting will be held at Loews Coronado Bay on February 27 at 10:00 a.m.

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