National Ethanol Vehicle Coalition - FYI Newsletter, Volume 7, Issue 3, January 29, 2002

In This Issue.  .  .

PRESIDENT BUSH VISITS MISSOURI CORN PROCESSING FACILITY

On January 14, 2002 President George W. Bush, Commerce Secretary Don Evans and Ag Secretary Ann Veneman made a brief stop in Aurora, Missouri to visit an MFA Incorporated feed mill.  The visit was part of a three-state tour to highlight the importance of U.S. agriculture and trade to the world economy.  During the stop, Bush also mentioned the importance of ethanol and renewable fuels to U.S. national security.  In addition, the President called on Congress to pass a comprehensive Farm Bill and end the death tax.  Gary Marshall, Missouri Corn Growers Association CEO, was in the crowd for the visit at the invitation of Senator Kit Bond (R-MO).  Gary Marshall is also serving as the Chairman of the National Ethanol Vehicle Coalition during 2002.

SIUE NEW ETHANOL PLANT

By Jim Getz of St. Louis Post-Dispatch, January 14, 2002

With a general contractor hired, earthmovers plowing up soil at the site and the search for a director reaching a head, Southern Illinois University at Edwardsville's corn-to-ethanol research plant is rapidly becoming a reality.

Brian Donnelly, executive director of University Park, SIUE's research arm, said January 14, 2002 was the closing date for accepting applications from prospective directors, although the university could reopen the search if a suitable candidate is not found in the first batch.

In any case, whoever becomes the director will have impressive credentials.

By July of 2001, bidding had closed on about 70 different pieces of equipment at the plant, including $873,000 for a distillation column. Among the other bids were $416,000 for a centrifuge, strainers and hydroclones; $142,000 for a rotary speed dryer; $130,000 for a gluten meal dryer; and $219,000 for evaporators.

Meanwhile, actual work is being done on the site where the symbolic groundbreaking ceremony took place last August.

Fru-Con Construction Corp., a Ballwin-based company that has built everything from chemical plants to geothermal power plants to schools, announced December 26, 2001 that it had been named general contractor on the project with its bid of $3,391,000.

There were eight other bids ranging up to $4,797,241 for the job, which is to construct the building to ensure that all kinds of scientific and production equipment fit inside perfectly.

The corn-to-ethanol project intrigued Fru-Con for its uniqueness, said Wright, a Collinsville native who as a child used to travel through the SIUE campus on his way to his grandparents' home at Holiday Shores Lake.

"We're putting a lot of credence to some of the legwork that's already been done in this area for research and development facilities," he said, referring to biotechnology. "We're saying, 'We certainly want to be a player in that market.' This was a high-profile and well-advertised project that we worked aggressively to get."

AUTOMAKERS OPT FOR FUEL CELL PLAN

By Jeff Plungis of Detroit News Washington Bureau

The U.S. government and the nation's major automakers announced a new partnership on January 9, 2002 at the 2002 North American International Auto Show aimed at replacing the internal combustion engine with cleaner, more efficient hydrogen-based fuel cells.

The new program, dubbed the Freedom CAR, will replace the Partnership for a New Generation of Vehicles (PNGV). That effort was championed in 1994 by former Vice-President Al Gore to develop various advanced technologies to create an affordable family sedan that could be driven 80 miles on a gallon of gasoline.

As part of his announcement, Energy Secretary Spencer Abraham, a former Michigan senator, underscored the Bush Administration's commitment to developing a hydrogen-based infrastructure to reduce dependence on foreign oil and reduce carbon dioxide emissions.

Under PNGV, the automakers worked on a variety of technologies -- including better aerodynamics, lightweight materials and electric and hybrid vehicles -- that could achieve the 80-mpg goal. The new program will be focused solely on fuel cell-powered vehicles.

Fuel cells are considered the most promising technology to replace the internal combustion engine. The automakers are under increasing pressure to develop more efficient vehicles to reduce emissions that contribute to smog and global warming.

Fuel cells use stored hydrogen and oxygen from the air to create electricity. In a pure hydrogen fuel cell, the only emission is water vapor. Fuel cells are cleaner and more efficient than combustion engines, but cost about 10 times more. Mass production is not expected for 10 to 20 years.

All the major automakers have made huge investments in fuel cells. DaimlerChrysler AG and Ford Motor Co. already have prototypes on the road in California. General Motors Co. has partnered with oil companies and fuel-cell makers to develop concepts. The Japanese and German automakers are also developing test vehicles.

PNGV has been administered by the Big Three through a consortium known as the U.S. Council for Automotive Research, or USCAR, since its inception. Freedom CAR will also consolidate management of the government portion of the research under the Department of Energy. PNGV had been split between the federal government's Energy and Commerce departments.

Abraham's announcement caps months of uncertainty about PNGV. The program was expected to undergo scrutiny, being the brainchild of Gore, President Bush's political opponent in 2000. The Bush administration proposed a $50-million cut to the program in its first budget last year. Despite the proposed reduction, the Big Three expressed relief the program would survive. Congress later restored the cut. Funding for 2002 is $127.1 million.

Since 1994, the government has spent more than $1 billion on PNGV. All three American manufacturers produced concept cars that came close to the 80-mpg goal by 2000, but none were close to moving the vehicles to production. That step was originally envisioned by 2004, 10 years after the program began.


Earlier this year, Abraham discussed shifting the program away from the family sedan toward SUVs and other vehicles that represent a growing portion of the marketplace. The emphasis on fuel cells will make the program technology-specific, rather than oriented toward one particular vehicle or set of vehicles.

Environmental groups frequently criticized PNGV as a corporate subsidy that allowed automakers to avoid improving fuel economy while yielding few benefits for consumers. Over the nine years of PNGV's existence, the average fuel economy of light vehicles has declined, as consumers have increasingly turned toward gas-guzzling SUVs and higher horsepower engines.

The automakers say the government spending is justified and necessary as long as policymakers continue to push for improved fuel economy while gasoline prices are low and consumers demand more powerful vehicles.

NEW E85 STATIONS IN MINNESOTA

A new E85 pump will soon be coming to Minnesota!  The Minneota station that will carry the alternative fuel is the Farmers Cooperative Association Cenex C-Store located at 301 East 1st Street in Minneota.

There are currently sixty-two commercial outlets and three private E85 fueling sites serving the state. 

INCENTIVES Considered FOR THE PURCHASE OF ALTERNATIVE FUEL VEHICLES in Washington State

A hearing took place on January 24, 2002 in the Cherberg Building at the State Capitol complex in Olympia before the Environment, Energy and Water Committee.  The Puget Sound Clean Cities Coalition proposed that SB6285 - provide incentives for the purchase of alternative fuel vehicles and the development of alternative fuel infrastructure.

A new section was added to chapter 82.04 RCW that read that persons who are taxable under the chapter and provide financial assistance for the purchase, or the lease for a period of at least three years, of new clean alternative fuel vehicles to school districts, transit agencies, and local governments may take a credit for amounts paid, if the vehicles are used for public transit.  Tax credits were also listed to be given for the costs involved in acquiring and installing alternative fuel and electric recharging equipment, including alternative fuel tanks. 

For more information, visit http://www.leg.wa.gov/wsladm/bills.cfm.

NORTH DAKOTA GOVERNOR ORDERS USE OF ETHANOL-BLENDED FUEL

 By Dale Wetzel of the Associated Press

On January 19, 2002 Governor John Hoeven ordered the state Department of Transportation to start buying ethanol-blended fuel for the state's fleet of more than 2,200 cars and trucks.

The directive, which takes effect next week, will give North Dakota's ethanol market a slight nudge. It creates new annual demand for at least 120,000 gallons of ethanol, which is made mostly from corn. North Dakota has ethanol factories in Walhalla and Grafton, in northeastern North Dakota. Together, they produce more than 30 million gallons of ethanol annually.

The requirement means a $ 71,800 increase in the state's fuel bill in the next year. Hoeven said the sum will be covered by a federal Department of Energy grant that is intended to encourage alternative fuel development.

Paul Feyereisen, the Transportation Department's fleet manager, said he had no problem with the switch. Ethanol-blended fuel performs well and has advantages over straight gasoline, he said.

State vehicles now use almost no ethanol-blended fuel, because it is more expensive for state government to buy, Feyereisen said.

Hoeven's order requires use of fuel that is 10 percent ethanol and 90 percent gasoline, which is a formula commonly found at North Dakota service stations.

The Transportation Department's vehicle fleet includes cars, trucks and vans used by state agencies and North Dakota's university system.

Feyereisen said the motor pool includes about 2,250 cars and trucks and about 550 heavy, diesel-powered trucks. Ethanol is not mixed with diesel fuel, although the Transportation Department is experimenting with biodiesel, a blend of diesel fuel and soybean oil.

The state motor pool has fueling stations in 10 locations statewide. When necessary, drivers of state vehicles also stop at commercial gas stations.

The state fuel pumps dispense about 1.2 million gallons of fuel annually. About 525,000 gallons are purchased at regular gas stations, Feyereisen said.

State government already provides some support for the ethanol industry.

Last year, the Legislature earmarked $ 2.5 million in subsidy payments to North Dakota ethanol plants. The two factories get 40 cents per gallon of ethanol they produce, until the money is exhausted.

Lawmakers also approved an income tax credit for agricultural producers who invest in agricultural processing ventures, a category that includes ethanol plants.

Alternative Fuel Workshop in Denver

The National Ethanol Vehicle Coalition and the U.S. Department of Energy are conducting a FREE Federal Workshop on alternative fuels in the Denver, Colorado area on February 7, 2002 from 8:30 a.m. to 12:00 p.m.  This workshop will include discussions on all forms of alternative fuels, but will mainly focus on E85.  ALL are invited to attend.  Breakfast will be served at 9:00 and the workshop will follow.

The workshop will be held at the Holiday Inn Denver West Village at 14707 West Colfax in Golden, Colorado.  Federal fleet drivers will be included in these events.  The efforts will concentrate on the reasons why Denver should use alternative fuels, (i.e. reducing winter pollution), the locations of new fueling sites, and the federal requirements concerning the use of alternative fuels.  Colorado’s General Services Administration Fleet Manager Mike Steffan will attend.

Please email Michelle Saab at info@e85.com to obtain a registration form.  Registration is due by January 29, 2002.
DID YOU KNOW?

·  E85 is renewable-based.  Ethanol is made primarily by fermenting the starch found in corn.

·  E85 reduces ozone-forming tailpipe pollution by 25%, greenhouse gas emissions by nearly 40% on a per mile basis and E85 contains 80% less of the chemicals found in gasoline.

* 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 8:30 a.m. to 12:00 p.m. at the Holiday Inn Denver West Village at 14707 West Colfax in Golden, CO.  For more information or to register, 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 ClevelandCall 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 26

National Ethanol Vehicle Coalition’s Annual Board Meeting at the Loews Coronado Bay Resort in San Diego, California from 1:00 p.m. to 5:00 p.m.  For more information, contact Randa Barker at info@e85.com.

February 27

Governors’ Ethanol Coalition Meeting at the Loews Coronado Bay Resort in San Diego, California at 10:00 a.m.  For more information, contact Anita Randolph at nrranda@mail.dnr.state.mo.us.

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.

April 11, 2002

National Alternative Fuels Day Odyssey from 8:00 a.m.- 9:00 p.m.  The Public is Welcome.  For more information contact: Teresa Hansen or Nick Wagoner at

1-800-642-1083 ext. 1277 or 402-562-1277 or visit: www.cccneb.edu/Columbus/altfuels 

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.

July 23-25

FedFleet 2002 at the Kansas City Convention Center in Kansas City, Missouri.  For more information, visit http://www.fedfleet.org.

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