In This Issue:

FYI Newsletter Volume 9, Issue 12, July 30, 2004 

•  Redwood Falls, MN Record Breaking E85    Promotion •  NEVC Attends Federal Fleet Conference •  GM/NEVC ‘Tailgate Party’ to Take Place     at ACE Conference •  National Alternative Fuel Training    Consortium Focuses on E85

•  E85 Legislative Update •  Member Spotlight –    Abengoa Bioenergy •  Renewable Energy Action Project    Named Clean Air Trust 'Villain of the    Month' •  Letters to the NEVC

Redwood Falls, MN Successful E85 Promotion

A record 1,608 gallons of E85 were pumped at the Grand Opening of the Cenex C-Store in Redwood Falls, Minnesota on July 23.  The promotion sold E85 for 85 Cents per gallon from noon until 6 p.m.

“Wow.  The advertising, publicity and especially the local support really paid off!” said Tim Gerlach of the Minnesota E85 Team. 

Marketing of the grand opening event consisted of newspaper and radio ads, mailing of postcards, banners and posters supplied by the local cooperative.

The station located at 1400 East Bridge Street in Redwood Falls converted a 12,000 gallon gasoline tank to store the clean-burning alternative fuel.  The site has twelve E85 hoses and has the pay-at-the pump option for all pumps.  They also plan to sell the fuel at 20 cents below gasoline at all times.

“We decided to sell E85 because of the high cost of gasoline and to rely less on imported oil,” said Jim Miller, General Manager of Farmers Coop Oil.  “Enough is enough and we have to do something.”

The Redwood Falls Cenex is one of four E85 locations Farmers Coop Oil owns in Minnesota.  Other stations include those in Olivia, Danube, and Renville.  The celebration was sponsored by Farmers Coop Oil, the Redwood Falls County Corn Growers and their E85 Committee, and the Minnesota E85 Team.

The National Ethanol Vehicle Coalition congratulates Farmers Coop Oil for their leadership in the use of E85.  “Farmers Coop Oil is a model E85 vendor/distributor that can and should be duplicated by other groups across the nation,” said Todd Sneller, Chairman of the National Ethanol Vehicle Coalition.  “We applaud the efforts of Farmers Coop Oil and ask other cooperatives across the country to consider joining in such efforts to promote domestic-renewable transportation fuels.”

To view all E85 locations throughout the U.S., visit the NEVC website at www.E85Fuel.com.

Jim Miller with a local E85 patron.

GM/NEVC ‘Tailgate Party’ to Take Place at ACE Conference

For questions, please contact the NEVC office.

www.ethanol.org

National Alternative Fuel Training Consortium Focuses on E85

On August 16 West Virginia University will hold an alternative fuel training seminar that will focus on the benefits of E10 and E85. The seminar, taught by Nick Wagoner of the Central Community College in Columbus, Nebraska and the National Alternative Training Consortium (NAFTC), will be geared mainly toward the service side of ethanol-fueled vehicles.

“The main misconception about ethanol fuels is that many think they contain a vapor pressure problem. They do not,” commented Wagoner. “In my class I demonstrate with an OTC vapor pressure tester that the blends don’t cause much vapor pressure.”

Wagoner is also writing a textbook giving an overview of alternative fuels. It is planned to be complete by October and released by January or February of next year. He has conducted workshops at many automobile dealerships and plans to do training in California soon.

“E85 is a wonderful fuel!” Exclaimed Wagoner. “I have had no complaints about the use of E85 in flexible-fuel vehicles.”

To contact Nick, email him at nwagoner@cccneb.edu.

(This update, prepared by NEVC Executive Director Phil Lampert,  has previously been submitted to all NEVC members)

The Congress is now on summer recess and does not return until September 7. Of the thirteen annual appropriation bills, only two have been approved and it is clear that much of the remaining time will be spent on appropriations and subsequent Continuing Resolutions. While there are many important issues left to be considered, the Second Session of the108th Congress, little in the way of substantive policy is expected to be approved prior to the November 2 general election. Following is an update and status report of issues of importance to E85 advocates. . .  

Volumetric Ethanol Excise Tax Credit (VEETC): This revenue neutral provision would remove the ethanol tax incentives from the Highway Trust Fund and place the expense in the General Fund. As importantly, implementation of this policy would eliminate the current cumbersome process needed for E85 blenders to receive the current incentives. E85 blenders currently must have a federal income tax liability, not be subject to the Alternative Minimum Tax, and be willing and able to "hold" the tax credits until the end of their annual accounting years. The VEETC would replace the current system with a direct payment to blenders based on the amount of ethanol used.  Issues relating to "federal tax liabilities and AMT" would no longer be applicable.  Modification of the process by which E85 blenders are able to use the existing tax incentives has been the top legislative priority of the NEVC for the past two years.

The VEETC has received strong bi-partisan support in both the House and the Senate.  Little in the way of controversy is preventing the VEETC from passage.  The legislation has been included in two pending bills of utmost importance to most, (A) Reauthorization of the Highway Bill, and (B) the FSC/ETI Jobs bill and that is essentially the problem.

The current Highway Bill actually expired some eight months ago, but has been extended pending ongoing negotiations between the Senate, House, and White House.  The Senate has offered a $318 billion package for the nation's highways, bridges and other transportation needs while the House of Representatives has approved its own package worth $275 billion. The White House wants no more than $267 billion. On July 27,  while appearing at an event in Glenwood, Iowa, Senator Grassley was asked about the chances to pass a Highway Bill yet this year.  He stated that the bill was "bogged down" as a result of the funding level differences and stated that "Miracles do happen in Washington, but I'm discouraged."

E85 Infrastructure Incentives:  New incentives to promote the establishment of E85 infrastructure, hybrid vehicles, fuel cell technologies, and other alternative fuel activates have been passed by the Senate on several occasions in the past two years. These incentives have been supported by a broad range of alternative fuel advocates referred to as the CLEAR Act Coalition. The CLEAR Act Coalition includes Honda, Ford Motor Company, the Natural Gas Vehicle Coalition, Propane Vehicle Coalition, National Ethanol Vehicle Coalition, Electric Drive Association, Union of Concerned Scientists, and several other environmental organizations.

The proposed incentives are part of the pending National Energy Bill and have also been added to the FCS/ETI Jobs bill. The FSC/ETI bill is a so called "must pass" piece of legislation that addresses, in part, tariffs that have been placed on U.S. goods being imported into the European Union. Currently these tariffs are at 7% to 9% and could rise to 17% in the next several months unless legislation is passed that addresses the European Union sanctions.

Both the Senate and the House have passed FSC/ETI legislation, however the bills differ significantly and have not even gone to conference. The Senate Bill FSC/ETI bill includes the E85 tax incentives and also the VEETC. The House version does not include these provisions but does include a $9 billion "buy out" for tobacco farmers. The Senate has appointed 24 members to participate in a Conference Committee with the House. Senator Grassley will be the leader of the Senate Conference Committee.

Unfortunately, the House adjourned without appointing Conference Committee members and little if any progress is expected to take place prior to the Sept. 7. In fact, there is some indication that Senate and House leaders have even been unable to determine whom will lead the Conference Committee, Senator Grassley or Congressman Thomas, (R-CA).

If this all sounds confusing, it is...........and is further complicated by the current political season. Democrats have been blamed for holding up these two bills so as to prevent the President from hosting a "Rose Garden signing ceremony”. On the other hand, Republicans have been identified as preventing passage due to the fact that Mr. Daschle, (D-SD) is in the middle of a very close re-election campaign and passage of an ethanol element in either bill would provide him an edge.

Summary:

It is possible that one or even both of these two bills which include issues of importance to E85 advocates could pass prior to the Presidential election, but it appears doubtful that will happen. More likely, and again depending on the results of the Presidential election and which political party prevails in the House and Senate, a "Lame Duck" session of Congress would convene in mid-November. The NEVC will continue to promote our mutual objectives and provide regular updates.

As reported by the Missouri Corn Growers, Senator Bond, (R-MO) was recently quoted as saying, "We (the Congress) couldn't pass Mother's Day right now. That's how bad it is."

That short statement may be the most accurate and factual summary available.

Member Spotlight – Abengoa Bioenergy

Abengoa Bioenergy has become one of the most recent new members of the NEVC.  Formerly High Plains Corp, the organization is owned by Abengoa SA of Spain and now operates three ethanol production facilities in the U.S.

“The plants are located in Colwich, Kansas; York, Nebraska; and Portales, New Mexico,” said Dave Weber, Ethanol Sales Director of Abengoa Bioenergy Corporation. “We are in the process of securing the necessary financing for an 88M annual gallon production facility to be built in Ravenna, Nebraska. Expected operational date is targeted for 2006.”

When asked why Abengoa joined the NEVC Weber added, “We are in the process of rolling out an E85 marketing plan and felt it was important to be connected with the leading E85 promotional organization.  As I see it, the NEVC is working extremely hard to further the use of E85.”  The organization plans to introduce their own marketing plan for E85 soon.

Abengoa states that they are in favor of alternative fuels for it decreases our nation’s dependency on imported petroleum.  

Welcome, Abengoa Bioenergy, to the NEVC!

- from July 19, 2004 U.S. Newswire

The National Ethanol Vehicle Coalition is clearly an immense supporter and advocate of the use of all forms of alternative fuels, including E10 and E85.  Our FYI and other materials reflect such strong advocacy.  However, in the interest of freedom of expression, we wished to reprint the following press statement recently issued by the Clean Air Trust. 

The following statement on the July “Villain of the Month” was released today by the Clean Air Trust:

Why would an organization claiming to represent environmental groups favor dirtier air in California?

And is there a connection to a race for a U.S. Senate seat from California?

These are mysteries raised by this month’s “clean air villain of the month” for July 2004 – the California-based Renewable Energy Action Project (REAP).

The organization, whose letterhead says it represents such well-known entities as Greenpeace and the Bluewater Network, raised eyebrows earlier this month when it sided with pro-Bush administration corn growers and attacked a coalition of respected clean-air advocates who seek to permit California gas stations to sell gasoline without the forced use of ethanol.

The clean-air coalition, which includes the Sierra Club (news – web sites), American Lung Association, Physicians for Social Responsibility, Natural Resources Defense Council, Environmental Defense, U.S. Public Interest Research Group, National Environmental Trust, Clean Air Trust Education Fund, and Our Children’s Earth Foundation, had urged EPA Administrator Mike Leavitt to grant California’s request to waive mandatory use of ethanol in reformulated gasoline sold in California.

“In California, the federal oxygen requirement met with ethanol exacerbates already unhealthy levels of air pollution throughout the state,” the coalition noted. “We believe the need to grant California’s oxygen waiver request is urgent. It would benefit public health and the environment and could very well lower gasoline prices almost immediately.”

The clean-air coalition’s request appeared to upset REAP, which told Inside EPA’s Clean Air Report that it was “at odds” with the clean-air coalition on this issue. “The national environmental groups have not been involved in the California process and have no understanding of it,” a REAP source told the publication.

In fact, the clean-air coalition based its comments on detailed research by the California Air Resources Board, which believes that mandatory ethanol use will make it harder to meet clean air standards for deadly fine particle matte-r.

So why does REAP support the mandatory use of ethanol even when the state of California says that will mean dirtier air? REAP claims it knows more about the issue than the state’s scientists.

But some people say it’s because the group is closely affiliated with the ethanol industry. REAP appears on a media “contact list” put out by the Renewable Fuels Association, whose board includes not only small ethanol producers, but big-corn growers such as Archer Daniels Midland. And REAP’s positions on ethanol echo those of the industry.

We do know the issue is politically volatile – at both the national and state levels. It is widely believed that the Bush administration is sitting on California’s request to avoid offending voters in corn-growing states, including Iowa. There was added evidence for this thesis last week, when the National Corn Growers Association gave the Bush administration the “friend of corn growers award.”

The Iowa media reported the award came in part because the Bush administration had stonewalled California’s request to permit sales of cleaner gasoline without ethanol. “By doing so, corn growers said the 650-million-gallon ethanol market was preserved. Iowa continues to build and open new ethanol plants increasing the demand for corn,” the Waterloo/Cedar Falls (Iowa) Courier reported.

The California/ethanol clash is also a point of controversy in a race in California for a U.S. Senate seat: Republican candidate Bill Jones is part owner of an ethanol company. His opponent, incumbent Senator Barbara Boxer (D-Calif.) is among those who have repeatedly urged EPA to permit California to sell reformulated gasoline without ethanol.

One footnote to that Senate race: Jones founded Pacific Ethanol Inc. in 2002, a year after the Bush administration rejected California’s waiver request. A federal court later ruled the Bush administration acted illegally. Pacific Ethanol and related properties are being acquired by Accessity Corp. in a merger said to be worth tens of millions of dollars. Jones announced last week that he would invest $2 million of his own money in the Senate race. As the Los Angeles Times noted last week, “His wealth – at least on paper – increased dramatically this spring with the announced merger.”

NEVC note:  The preceding article does not reflect the opinion or position of the NEVC, but rather is provided to exhibit that while ethanol advocates are strongly in support of the future growth of the use of domestic-renewable transportation fuels, strong emotions do exist that oppose the use of ethanol.

 Letters to the NEVC

Letters to the NEVC - This section highlights emails that the NEVC has recently received.  Many of the comments or suggestions that we receive are of interest to a wider audience and we would like to share them with our readers.

This email was written to Michelle Kautz, NEVC Dir. Of Communications, after reading a Letter to the NEVC in the July 14, 2004 newsletter. . .

I Encourage E85 Use

Thank you for the information that Westar Energy is purchasing vehicles that use E85.  I am a shareholder of Westar Energy.  As an investor in investor owned utilities throughout the United States it is my plan to encourage each company that I have stock in to follow the example of Westar Energy and purchase vehicles that utilize E85.

Today I received a letter from M. Michael Rounds, Governor, State of South Dakota in which he made the following statement: "South Dakota has already made a commitment to purchase E-85 vehicles for fleet use.  I have instructed John De Loache, State Fleet Manager, to purchase E-85 vehicles whenever it is economically feasible to do so.  Our fleet currently consists of approximately 13 percent of such vehicles, and this continues to rise."

- William B. Kessler

 

FFVs?
 

My name is Taci Archer and I live in Oklahoma (Norman). I was looking through your website to se if my car can use E85 but it only goes to 1999. I have  a 1998 Ford Taurus SE 3.0 L V6. We also have a 1990 model GMC Vandura 2500. Can either of these vehicles use E85 gas? Thank you for your time.
 

Taci
 

. . .
 

Taci,

Unfortunately, your GMC Vandura is not E85 compatible.  To see if your Taurus is E85 compatible, check the 8th digit in your VIN.  If the digit is a 2, then it is E85 compatible.  If not, than it is not capable of running on E85.

Thank you for your interest in E85!

-Michelle Kautz

Newsletter Suggestion

I like the Newsletter but many times I have a problem printing it out.  May I suggest that it be put in a form that does not have to be manipulated to be printed and read later.  The way it is, Its too wide for printer. 

Sam Sanders

. . .

Sam,

Unfortunately, the software we use to create the newsletter does not allow us to have a print view.  I have forwarded your request to the software customer service.  They responded that they are working on the problem.

Thank you for your interest in E85 and for your suggestion!
 

- Michelle Kautz
 

Thanks for the emails to the NEVC!  Feel free to email us with your comments at anytime.

NEVC Calendar

August 10-12, 2004
American Coalition for Ethanol (ACE) Annual Meeting and Ethanol Conference in Duluth, MN.  E85 for 85 Cents promotion planned.  NEVC/GM sponsored “Tailgate Party” on Aug. 10.  For more information, visit www.ethanol.org.

August 31 – September 1, 2004
Energy Technology Expo and Conference in Denver, CO.  For more information, visit www.energytechexpo.com.

September 8-9, 2004
Power Crops for the Americas in Miami, FL.  For more information, email lindsey.sumpter@informa.com.

September 22-25, 2004
National Association of State Fleet Administrator Conference in Branson, MO.  For more information, visit http://ncsfa.state.ut.us/.

February 24-26, 2005
Commodity Classic in Austin, Texas.  For more information, visit www.commodityclassic.com.

CONTACT US. . .

Please feel free to e-mail your story suggestions, comments, corrections or clarifications to us at info@e85fuel.com or call us toll free at 877-485-8595.

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

Randa Barker, Director of Administration
info@e85.com

Kathy Frese, CPA, Director of Finance
kfrese@E85Fuel.com

Michelle Kautz, Director of Communications
mkautz@E85Fuel.com

Roger Listenberger, Director E85 Fuel Networking
rlistenberger@E85Fuel.com

Louise Saucier, Membership Coordinator
lsaucier@E85Fuel.com

Christi Vander Voort, NEVC Iowa E85 Coordinator
cvandervoort@E85Fuel.com

You may view this FYI online at
http://www.e85fuel.com/news/index.htm

NEVC  promotes the use of 85 percent ethanol as a renewable form of alternative transportation fuel while enhancing agricultural profitability, advancing environmental stewardship and promoting national energy independence.