National Ethanol Vehicle Coalition - FYI Newsletter, Volume 7, Issue 10, May 29, 2002

In This Issue.  .  .

MCGA LOBBYING EFFORTS REWARDED

On May 17, 2002, the final day of the 2002 legislative session, the Missouri General Assembly passed several bills important to ethanol and agriculture, including House Bill 1348, Senate Bill 984 and Senate Bill 915.

House Bill 1348, omnibus agriculture legislation, includes provisions to improve the state ethanol program and requires that ethanol plants must be at least 51 percent farmer-owned to qualify for program payments. 

Senate Bill 984, relating to environmental regulation, also makes an additional enhancement to the Missouri ethanol program, allowing ethanol plants to continue to receive program payments beyond the 5 years allowed in current law, if they've failed to receive payments during the period due to state budget constraints.  Senate Bill 915, the transportation-funding bill, provides stable funding for the Missouri ethanol program at $3 million per year.

Brent Rockhold, Missouri Corn Growers Association president and corn farmer from Arbela, MO, stated that passage of the three bills are a huge win for corn growers.  “The Missouri Corn Growers Association played an important role in pushing for improved ethanol and agriculture legislation, and our hard work was rewarded today.  The new legislation is a win-win-win for farmers, consumers and the environment.  We greatly appreciate the tremendous support of our friends in the Missouri General Assembly.”

Missouri’s farmer-owned ethanol industry is expected to grow as a result of the legislation.  Through expansion construction, Northeast Missouri Grain will double the annual ethanol output of the plant in the next year.  Three additional farmer-owned efforts are also underway to build ethanol plants in west-central, east-central and southeast Missouri.

For more information on the legislation, visit Missouri Corn Online at: http://www.mocorn.org/legislative.htm.

Hi, I'm Ron. And I'm an ethanolic

- by Ron Wiggins of The Palm Beach Post, May 5, 2002

Last fall, in the wake of the terrorist horror, I wondered how we would survive an oil embargo or terrorist attacks on pipelines and tankers, and I found the answer at the University of Florida.

Seven years ago, microbiologist Lonnie Ingram developed a genetically altered "super microbe" that chews up biomass (plant-based waste matter) and spits out ethanol that we can burn in our gas tanks. When I talked to Ingram after the attacks, he said work had already begun on an ethanol plant in Jennings, Louisiana, using his mutant microbes on sugar cane waste.

Ingram envisioned alcohol plants in Florida, the Midwest and California with the potential of replacing all the oil we use in our cars with clean, renewable alcohol. What's more, the scientist said, the process is not dependent on surplus corn, the present source of ethanol fuel. Biomass-sourced ethanol can be made cheaper than corn-based ethanol. Today, Ingram noted, some one million motor vehicles in the Corn Belt burn an 85-percent-ethanol, 15-percent-gasoline mix. The E85 mix and its cousin, the E95 diesel mix, are priced the same as gasoline.

There's always a catch, of course. It takes 18 months to build a super microbe alcohol distillery and probably that long to add pumps at gas stations. Your car or truck, once modified to burn E85, will still burn 87 octane regular. Curiously, the ethanol mix is 105 octane and gives a slight horsepower boost at a cost of slightly lower fuel economy.

Interested? You can buy the Ford Taurus, the Mercury Sable and Chrysler minivans already modified with stainless steel fuel tanks and Teflon gas lines to burn regular or E85. General Motors offers a lineup of SUVs and trucks that thrive on the cleaner-burning E85.  You can find a complete list of E85 compatible vehicles at www.E85Fuel.com.

That was the story in September. So, how's that ethanol plant in Jennings coming? What about E85 for Florida? I called BC International, the Denham, Massachusetts based biotech company behind the Jennings project, where vice president for development John Doyle agreed to answer my questions.

Q: When will the Louisiana plant open?

A: "Our pilot project has been successful and we're looking for full-scale production 18 months from start of construction. Construction begins in six months if the loans are committed. We look to produce 23 million gallons of ethanol a year."

Q: Do you expect to get your financing in place in six months?

A: "Yes. The market for ethanol is expanding as some states, particularly California, are required to replace certain compounds that reduce smog, but pollute ground water. Ethanol replaces those compounds. We can make ethanol from rice straw in California."

Q: Can you confirm that your microbe technology lowers the price of ethanol?

A: "Yes, by 30 percent. There is only so much corn. Biomass is unlimited. Our microbe technology can use virtually any biomass _ sugar cane waste, sawdust, rice straw, and paper from landfills."

Q: I've heard that attempts to make alcohol from garbage didn't work out.

A: "True, but that was using the old fermentation technology from yeast. Microbes do it cheaper."

Q: Can you explain how the new ethanol technology works?

A: "Any biomass or waste is collected, ground up and run through 100,000 gallon fermenter tanks containing the microbes. The part of the biomass that is cellulose, a sugar, is digested by the microbes, producing ethanol. Garbage is a good source of cellulose because once you have reclaimed the aluminum and plastic, you have mostly paper cellulose."

Q: Where do you get the microbes?

A: "We start with the master culture in a petri dish and go from there."

Q: Any plans for building ethanol plants in Florida?

A: "No immediate plans, just preliminary talks. If the demand comes, we could be up and running in 18 months. It's a chicken and egg thing. There needs to be a reason for gas stations to pump E85. The reason in the Midwest is the corn availability for ethanol."

Q: Could a fuel mix of 85 percent alcohol eventually replace straight gasoline for all cars?

A: "Henry Ford thought so. He made his first cars to run on alcohol. He was talked into gasoline by people with oil to sell. Now it's all coming together. Gasoline producers need alcohol to replace the banned additives and our company, BC International, is working with corn-based groups. When the corn runs out, we can make ethanol from leaves and cobs."

I hereby refuse to worry about oil embargoes, pipeline disasters and oil field destruction by our enemies. If our oil is cut off, it is clear that we can have inexhaustible supplies of cheap, renewable ethanol after only 18 months of economic chaos and gas station riots.

Ron Wiggins writes for the Palm Beach Post. You may email him at: ronwiggins@pbpost.com

State seeks ways to make ethanol to power cars

- by Robert Rodriguez of The Fresno Bee, May 5, 2002

A gasoline cocktail using raisin-made ethanol could one day power California cars.

The idea may sound far-fetched, but not when you consider that California's need for ethanol, a high-octane alcohol, is expected to skyrocket in less than two years.

The mighty Midwest corn growers -- the undisputed kings of ethanol -- are eager to supply California, a relatively puny ethanol producer. At least a dozen new plants, most in the Midwest, are planned with an eye on quenching California's ethanol thirst.

State officials estimate that by 2004, car-loving California may need between 760 to 950 million gallons of ethanol a year. Currently, just two ethanol plants exist in the state, one uses cheese waste and the other uses old soda and beer. The two plants dribble out about five million gallons a year and nearly all of it goes to the chemical industry.

That leaves a big question about who will supply California with ethanol.  The Midwest corn growers stand ready to ship westward thousands of rail cars and barges full of its high-grade ethanol.

But struggling California farmers also see the incredible potential of mashing and fermenting their own ethanol out of surplus crops such as raisins and new crops such as sugar cane.

From Butte County to the Imperial Valley, farmers are drafting plans, talking with investors and meeting with researchers to try to gain a foothold in California's developing ethanol industry.

Getting to the point where the state produces enough ethanol to be self-sufficient is not a simple matter. The Environmental Protection Agency recently raised concerns about the emissions from ethanol plants. And at least one potential ethanol plant builder worries that investors are skittish over the shifting dates for using ethanol in California.

"Would you want to spend $50 million or more to build a plant, then find out that the mandate for ethanol has been pulled out from underneath you?" said entrepreneur Michael Hart of Oakdale, who wants to build an ethanol plant in the state. "People want to see that California is committed to ethanol."

"There is going to be a demand for ethanol in this state," Pat Perez, manager of the California Energy Commission's fuels office said. "We understand there is uncertainty about creating a new industry in this state, but there is also a tremendous opportunity for using agriculture products and forestry waste for making ethanol."

Fresno State agricultural economist Ellen Burnes is aware of the possibilities. She is studying the feasibility of using local surplus commodities, including raisins and tree fruit, as a fuel source for ethanol. Burnes is asking farm industry groups for financial support for her research, but the response has been slow.   She is hoping for $180,000 over the next two years. So far, she has collected $5,000 from the California Department of Food and Agriculture.

"It is only a drop, but it is a start," Burnes said.

Although she understands Central Valley farmers are facing depressed commodity prices and research money is hard to come by, Burnes said the ethanol issue is not going away and could create a new market for growers.

Research shows that raisins hold the most promise for making ethanol because of their high sugar content, as much as 70%. And Burnes isn't suggesting the use of high-grade raisins. Ethanol can be made from raisins that don't pass muster for retail sale.

Burnes notes that it takes roughly thirteen pounds of raisins to make a gallon of ethanol compared to 22 pounds of corn.

"This is one of the most productive farm regions in the state, and we have to ask ourselves what role do we want to play in California's ethanol program," Burnes said.

Fresno County Farm Bureau President Paul Betancourt is among the few farmers in the Central Valley pushing ethanol research. He said the county should be at the forefront of figuring out how farmers can participate in meeting California's ethanol's needs. He and others are concerned that Fresno County is lagging in its investigation.

"We are behind, no doubt about it," he said.

Longtime Fresno County raisin farmer Pete Penner applauds any effort to find a new home for surplus or discarded raisins. The big question is at what price and can Fresno produce enough for an ethanol plant. Raisin prices for the last several years have been low.

If growers can make more money selling their discarded raisins for cattle feed or to the winery for distillation, then ethanol may not be an option.

The nation's ethanol producers are hungrily eyeing California's market. Last year, about 60 plants -- 90% located in the Midwest -- produced 1.7 billion gallons of ethanol. That production is expected to exceed 2.7 billion. And it could grow beyond that.

A recently approved U.S. Senate bill seeks to require more ethanol use in gasoline, resulting in a tripling of ethanol production to 5 billion gallons a year by 2012.

Lee Klein, chairman of the National Corn Grower's board of directors, was among a handful of Midwest representatives meeting with Fresno growers several weeks ago. It was a sales show of sorts. The Midwest farmers want to sell corn to any new ethanol plant.

Westside farmer Ryan Turner was among the farmers sitting at the table with the Midwest corn growers.

"They have been marketing and holding these ethanol conferences all over the place, hoping somebody is going to bite," Turner said. "The fact is, they have a lot of corn."

Klein admits his aim is to create new markets for the 31,000 farmers in 48 states he represents. Although Klein said he supports California creating its own ethanol industry, he knows full well the state probably won't become come entirely self-sufficient.

It takes an average of 18 months for an ethanol plant to be built and California officials have yet to see a business plan or know of a permit for the construction of an ethanol plant.

"I think they are going to need our corn," Klein said. "I don't see that going away."

The reporter can be reached at brodriguez@fresnobee.com or 441-6327.

8th Annual Clean Cities Conference Gave an Alternative to Gasoline

GM displayed their E85 GMC Sierra pickup at the event.

The Eighth National Clean Cities Conference and Exposition was held May 12 –  May 15, 2002 at the Myriad Cox Convention Center in Oklahoma City.  About 750 alternative fuel advocates attended the event including sixty exhibitors.

Ford Motor Company kicked off the event Sunday, May 12 with a reception at the National Cowboy and Western Heritage Museum.  Attendees visited the museum showcases of the history of the rodeo, had old-time photos taken, enjoyed a live Indian dance and food and beverages.

Seminars followed Monday with the opening of the Exposition Hall.  The NEVC manned a booth at the conference where they gave away candy, t-shirts, hats, key chains, and other promotional items.  Executive Director Phil Lampert also presented a workshop entitled “How to Build a Business Case for Infrastructure”.  The light-duty AFV 2003 product roll-out was a highlight of the day where DaimlerChrysler introduced three new FFVs including the Sebring, Stratus and Cargo Van.

GM displayed their E85 Tahoe at the event

“We’re very excited about the new DaimlerChrysler E85 vehicles,” Lampert stated.  “The Ford Taurus is the only available car that is now being produced as an FFV.  The Sebring and Stratus will be a nice addition.”

Monday night concluded with a “How the West Was Fun” Reception in the Exhibition Hall sponsored by Honda.

Tuesday, May 14 opened with the Clean Cities Awards Breakfast at 8 a.m. where Tim Gerlach received the award of 2002 Clean Cities Coordinator of the Year.  (Read more about Gerlach’s award below).

Tuesday continued with more sessions and ended with a “Happy Trails” Reception from GM.  The conference concluded on Wednesday afternoon.

The conference was proven a large learning experience for all forms of alternative fuels. 

TIM GERLACH NAMED CLEAN CITIES COORDINATOR OF THE YEAR

Tim Gerlach was named Clean Cities Coordinator of the Year at the Eighth National Clean Cities Conference and Expo on May 14 in Oklahoma City.  An honor for the International Falls,Minnesota native that has been working for the American Lung Association for three and a half years. 

Gerlach’s efforts have been mostly centered on E85, “We hope to have 75-80 E85 outlets in place in Minnesota by the end of 2002.  We also hope E85 sales hit 750,000 to one million gallons this year.”

These goals aren’t that far in the future.  Minnesota now has more than 65 E85 outlets - more than twice as many outlets than anywhere else in the United States!

His support of E85 is not just apparent in the workplace, but also at home.  He owns a 1997 Taurus FFV that has just crossed the 100,000 mile mark – 65,000 of which has run only on E85!

“We have done special events including E85, propane, biodiesel and natural gas,” stated Gerlach.  “We also work with Flint Hills Resources on the promotion of low-sulfur/low-benzene Blue Planet gasoline, which is available in the Twin Cities market. Looking ahead, we hope to do more with propane and Minnesota-based Bi-Phase Technologies and Minnesota Valley Transit Authority's CNG buses.”

 “I wish we didn't call them 'alternative’ [fuels],” Gerlach said.  “Personally, I believe in the future.  We will need all the energy sources we have - regardless of whether they are traditional or alternative. It is extremely short-sighted for us NOT to put emphasis on the development of non-petroleum sources. We are not going to run out of petroleum tomorrow, but, as each year passes, we are competing with a lot more people for that same petroleum.”

“I live in Eagan, MN, where Zacarias Moussaoui, the alleged '20th hijacker,' was arrested a month before September 11. He was arrested at a hotel near one of our E85 stations. Every day as I drive past there, I think of September 11 and what role our Mideast oil policy has played in the rise of this hatred. In some small way, I believe new fuels advocates are working to change this.”

The NEVC would like to give Mr. Gerlach a hats-off for all his hard work.  He certainly makes our efforts here at the NEVC much easier.

NEVC honors peterson air force base master sergeant

The NEVC honored MSgt. Mark A. Trolio of the U.S. Air Force for his efforts with the introduction of E85 onto Peterson Air force Base, Colorado.  The NEVC presented MSgt. Trolio a plaque honoring his dedication to the project at the Clean Cities Conference in Oklahoma City on May 14.  

President Clinton signed Executive Order 13149 into law on April 21, 2000 which requires federal vehicle fleets to reduce petroleum consumption by 20 percent by the end of Fiscal Year 2005.  Trolio saw the need to comply with the order. 

“I didn't realize the vehicles were being manufactured to burn either E85 or unleaded fuel until the Clean Cities Conference last year in Philadelphia,” stated Trolio.  “After returning to Peterson, we looked at our bases, which had E85 vehicles currently, and what future requirements were to come.”

“My view of E85 and alternative fuels is that we as a nation should be utilizing all alternative fuels available,” said Trolio.  “Since we have the technology to build vehicles that burn these fuels it only makes sense to use what we have in our country.” 

Why begin with Peterson Air Force Base?  Trolio’s response was simple, “We looked at Peterson first since it is “in our back yard”.   Once I decided to utilize Peterson Air Force Base, Chief Jordan and I had to sell this to the base and our Logistics Officer, Col. Kai Lee Norwood.  After talking to Phil Lampert about tank requirements, we presented our case to convert a tank to E85, which was a minimal cost to Col. Norwood.”

Not only was Peterson the first to install E85 on its base but it was also the first to install an E85 pump in Colorado.  A large stepping stone.

MSgt. Trolio will be retiring June 14, 2002.  “I am going to miss the involvement I have had with alternative fuels and our future and I will continually support the alternative fuels programs.”

 The NEVC wishes MSgt. Trolio the best in his future endeavors.

COUNTY IN MARYLAND CELEBRATES ITS FIRST E85 PUMP

Montgomery County celebrated the opening of its first E85 refueling pump on May 21, 2002 at 16640 Crabbs Branch Way in Rockville, Maryland.  Although the station was traditionally opened to only county vehicles, County Executive Douglas Duncan opened the station to the public by the use of a special fueling card system. The opening became possible through a grant by the Maryland Energy Administration from the U.S. Department of Energy. 

The ribbon-cutting ceremony included appearances by:  Douglas M. Duncan, Montgomery County Executive; Lee Slezak, Program Manager, U.S. Department of Energy; Fred Hoover, Director of the Maryland Energy Administration; Merrylin Zaw-Mon, Acting Secretary, Maryland Department of the Environment; Brad Powers, Deputy Secretary, Maryland Department of Agriculture; Bill Willard, Chairman, Montgomery County Agricultural Advisory Committee; Phil Lampert, Executive Director, National Ethanol Vehicle Coalition; Drew Stabler, Maryland Grain Producers Utilization Board Member; and Abert Genetti, Jr., Director, Montgomery County Department of Public Works and Transportation.

This is the second station ever to pump E85 fuel in Maryland.  In November of 2001, the Chevron Station at 3240 Fort Meade Road, Laurel on Rt. 198 in Fort Meade began pumping the clean, domestic fuel.  Additional E85 pumps are planned for opening in Annapolis, Gaithersburg and Baltimore.

The NEVC commends the Maryland Grain Producers Utilization Board (MGPUB) for their support and dedication to this project.

NEVC Calendar

June 2-5, 2002

Fifth Annual Energy 2002 at the Palm Springs Convention Center in Palm Springs, CA.  For more information, visit www.energy2002.ee.doe.gov.

June 3-5, 2002

Future Car Congress at the Hyatt Regency Crystal City in Arlington, Virginia.  For more information, visit www.futurecarcongress.org.

June 4-5, 2002

First Annual Pacific Ethanol Conference & Expo:  Developing Renewable Energy Through Ethanol at the Hilton Brisbane in Brisbane, Australia.  For more information, visit http://www.pacificethanol.com

June 9-11, 2002

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, 2002

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

October 6-8, 2002

National Association of Convenience Stores Show at the Orlando County Convention Center in Orlando, FL.  For more information, visit http://www.cstorecentral.com/nacsshow/2002info.asp.

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