National Ethanol Vehicle Coalition - FYI Newsletter, Volume 7, Issue 4, February 12, 2002
In This Issue. . .
RESULTS RELEASED OF MISSOURI ETHANOL ECONOMIC IMPACT STUDY
On February 7, 2002, the leaders of the Missouri Corn Growers Association (MCGA) and the Missouri Corn Merchandising Council (MCMC) announced the completion of a statewide study to determine employment and economic benefits of ethanol fuel production in Missouri. Dr. Donald Van Dyne, retired Research Associate Professor of the University of Missouri-Columbia, presented the results of his independent study to farmers and public policy makers gathered at the Show-Me Ag Classic in Columbia,
Missouri. MCGA and MCMC commissioned the study in November 2001 to help quantify the impact of current and planned ethanol production in the state.
“Economic analysis by Dr. Van Dyne in the early 1990s helped Missouri farmers and public policy makers understand the potential for ethanol production in the state,” explains Brent Rockhold, MCGA President and farmer from Arbela, Missouri. “However, in recent years, some in and out of agriculture have questioned the true impact of the two current farmer-owned ethanol plants in Missouri. Thus, we felt it was time to commission a statewide study to document the employment and economic benefits of Missouri ethanol production.”
The three-month, in-depth study evaluated direct and indirect benefits of ethanol production in Missouri using actual financial results from the plants and a sophisticated input-output statistical model called IMPLAN. IMPLAN is a standard model used by public and private entities to estimate the additional jobs and economic benefits created by new businesses. For this study, IMPLAN was used to determine changes in employment, personal income and economic activity for geographic regions based on actual and expected sales of ethanol, distillers dried grains and carbon dioxide.
According to Dr. Van Dyne, “The two ethanol plants in north Missouri have added significant direct benefits to Missouri, with the Macon plant adding almost $14 million and the Craig plant adding slightly over $10 million this past year. The direct and indirect impacts of the two plants, each producing 22 million gallons of ethanol annually, have major positive impacts on the north Missouri economies, including: process and add value to almost 16 million bushels of corn annually, 1,815 additional jobs, $172.8 million increase in total output, and tax revenues of $17.7 million.”
“One of the most exciting things from my perspective is the documented impact to agriculture,” says Sam Creed, MCMC Chairman and farmer from Fairfax, Missouri. “According to the Van Dyne study, the total direct benefits of the Northeast Missouri Grain plant represents an increase of about $0.50 per bushel for all of the 27.8 million bushels of corn produced in the nine-county region surrounding the plant. The total benefits of the Golden Triangle Energy plant is an increase of about $0.23 per bushel for each of the 44 million bushels of corn produced in the four-county region of northwest Missouri. It was obviously a good use of corn check-off dollars to support the development of the two plants in the mid-1990s.”
“We also asked Dr. Van Dyne to analyze the potential impacts if the industry grows to five plants of 40 million gallons, as recommended in an earlier independent analysis for our organizations,” explains Gary Marshall, MCGA and MCMC CEO. “The Van Dyne study documents that with five ethanol plants the estimated direct and indirect impacts include the creation of 8,890 new jobs, $845 million increase in total output and over $87 million in new federal and state tax revenues annually. This study documents a nearly $1
billion total impact and what some of us in the industry have believed all along – that ethanol can cause a renewal in agriculture and rural Missouri and benefit the entire state economy.”
Price
of E85 Lower than Gasoline in Denver
While in town for a workshop on February 7, 2002, NEVC visited many Colorado E85 stations and found Silco Oil priced their E85 100+ octane fuel ten cents less than their 87-octane gasoline. NEVC gives Silco Oil a pat on the back for pricing their E85 at $0.999/gallon! Unleaded 87-octane gasoline was priced at $1.099/gallon at the same Conoco station at 295 South Broadway in Denver, Colorado. To see a snapshot of this station, visit http://www.e85fuel.com/news/021202.htm.
Senate Committee Chair Calls for Alternative Energy
-from SolarAccess.com
In a speech promoting the benefits of renewable energy, Democratic Senator John Kerry said the United States should set a national goal of generating twenty percent of its electricity from domestic renewable energy sources by 2020.
Kerry criticized President Bush's reliance on oil in his energy plan, which the administration is trying to pass through Congress, and he said more needs to be done to foster other energy technologies to improve U.S. energy security. He called for stronger standards under the Corporate Average Fuel Economy and repeated that he is prepared to filibuster any attempts to open drilling in the Arctic National Wildlife Refuge.
"Nothing is more indicative of old thinking, special interest policy than the attempt by the administration to falsely sell to the American people a rationale for drilling in the Arctic National Wildlife Refuge," said Kerry. "Big oil and its allies have lusted over the refuge for two decades," but he said the Arctic oil would not come on line for twenty years while oil groups currently are mothballing many exploration projects because of the low price of oil.
Kerry is chair of the Senate Commerce Committee, which is reviewing whether to raise fuel economy standards for cars and sports utility vehicles.
Alternative Fuel Workshop in Denver a Success!
The National Ethanol Vehicle Coalition and the U.S. Department of Energy conducted a free federal alternative fuels workshop in Denver, Colorado on February 7, 2002. The workshop featured Ernie Oakes from the Department of Energy, Mike Steffan from General Services Administration, and Hal Smedley and Phil Lampert from the National Ethanol Vehicle Coalition. The discussion topics were: the Energy Policy Act of 1992, Executive Order 13184, GSA-DOE Partnership on the Six Cities Program, alternative fuel, vehicles and E85.
Many attended the workshop, a few including representatives from: the Federal Highway Administration, the United States Air Force, the Colorado Army National Guard, and the Las Vegas Army Recruiting Center.
The NEVC and the U.S. Department of Energy are planning more free alternative fuel workshops in the future. The next is tentatively scheduled for April 9, 2002 in Salt Lake City, Utah. Look for more information to come!
ETHANOL ERNIE MAKES RADIO DEBUT
"Ernie the Ethanol Reporter" made his debut recently on radio airwaves across the state as part of an ethanol awareness campaign sponsored by the Missouri Corn Growers Association and the Missouri Corn Merchandising Council. While "reporting" from a farm, ethanol processing facility, and fueling stations, Ernie reminded listeners on the MissouriNet and several other radio stations about the benefits of ethanol including reduced dependence on foreign oil, cleaner air, and rural economic development. The messages also told consumers that "with ethanol, Missouri has energy to burn" and to "burn ethanol, because we'll grow more!" To listen to the four Ethanol Ernie radio commercials, visit Missouri Corn Online at: http://www.mocorn.org.
New Report Supports Renewable Fuels with No Barriers
A new report was completed for the U.S. Department of Energy (DOE) on the infrastructure requirements for an expanded ethanol industry. The report found that “no major infrastructure barriers exist” for producing and using over five billion gallons of ethanol across the country each year.
The report, Infrastructure Requirements for an Expanded Fuel Ethanol Industry, analyzed the infrastructure requirement for expanding ethanol use, including transportation, distribution and retailing issues. The study assumed ethanol production of 5.1 billion gallons per year, comparable to pending legislation establishing an RFS. According to the study, 495 terminals (58.6% of operating terminals) would offer ethanol. Also:
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181 terminals would need to add new ethanol tanks and an additional 63 existing tanks would by converted to ethanol use.
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49 terminals would need to add rail spurs and 287 terminals would need to add blending equipment.
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35,214 retail outlets would make one-time modifications to handle ethanol
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Amortized, the combined cost to terminals and retail outlets would be only $0.0008 per ethanol-blended gallon of gasoline.
Given the amount of Midwest production, the report found that nearly a billion gallons of ethanol from that area would be moved down the Mississippi River via river barge, staged in the Gulf Coast, and travel by ship to the West Coast and northern portions of the East Coast. Significant amounts of ethanol will also be shipped throughout the country by rail tank car.
The report found:
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The volume of ethanol shipped in Jones Act vessels is less than the volume of MTBE it would be replacing.
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21 river barges of 30,000 barrel capacity will need to be added. This is “not a major addition to demand for new barges.”
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2,549 additional rail tank cars will be needed. This “would not be a major challenge for the freight car builders.”
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The average freight cost for all categories would be $0.0767 per gallon of ethanol.
The report concluded “no major infrastructure barriers exist” and that needed investments on an amortized, per-gallon basis are “modest” and “present no major obstacle.”
The full report can be found on the U.S. DOE website at: www.afdc.doe.gov/pdfs/6235.pdf
Energy Bill Debate Shifts Gears
After several starts and stops, the Senate of the United States is poised to take up a National Energy Bill. First stop will be the Senate Finance Committee Chaired by Senator Max Baucus, Democrat in Montana. Mr. Baucus has scheduled a markup on February 13, 2002 to consider a number of energy tax incentives that have been proposed to be included in a Senate Energy Bill.
Of importance to alternative fuel vehicle advocates is the provision of this markup that will consider the addition of the provisions of S760, the CLEAR Act. This bill, introduced by Senator Hatch of Utah along with twelve additional sponsors, provides a wide range of federal income tax incentives to advance the use of alternative fuels, alternative fuel vehicles, hi-bred vehicles, and electric vehicles. The NEVC has been working with committee staff and members of Congress to ensure that E85 is fairly and equitably treated in the tax bill. We are optimistic that Senator Baucus will be favorably inclined to include E85. Look to the next edition of the FYI for a final summary of the Tax Incentive Package or go to the Finance Committee website at http://finance.senate.gov/sitepages/legislation.htm.
Along with alternative fuel vehicle incentives, the Senate Energy Package will include several extremely contentious issues including: drilling in the Artic National Wildlife Refuge, increase in Corporate Average Fuel Economy standards, oil and gas drilling allowances, etc. Several senators have already “placed a line in the sand” regarding these issues and it will be interesting to say the least, to watch the outcome of the discussions.
The debate is certain to include a Renewable Fuel Standard that would clearly advance the use of domestic renewable fuels across the nation and assist to reduce our dependence on foreign oil.
While the Finance Committee will be doing a markup on February 13, the timing of floor debate in the Senate is uncertain given the need to complete the Senate version of the Farm Bill and the Congressional Recess from February 18-24th. The NEVC will be closely monitoring the energy debate in the Senate to ensure that all forms of alternative transportation fuels are treated reasonably and impartially. There is a long, long way to go regarding a new National Energy Strategy, but it appears that the debate is well underway.
DID YOU KNOW?
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E85 has a 100+ octane rating and provides a boost in engine horsepower. E85 burns cooler than gasoline and keeps your engine running clean and smooth.
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E85 is often priced less than regular gasoline. FFVs running on E85 get slightly lower mileage.
NEVC Calendar
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 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