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In This Issue: |
FYI Newsletter Volume 7, Issue 18, October 11, 2002
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Ethanol Competes with
Petroleum
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VFWs Join Ethanol Fight
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Ethanol Plants Nationwide to Face Tougher Standards |
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Energy Bill Update
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Former President Carter Calls for Development of
Biobased Alternative Fuels
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Member Spotlight - MO Corn Growers Association |
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-by
Nick Hiltunen of the Northeast Ohio News Herald, Sept. 29,
2002
It's
been in and out of the gas tanks of cars we've driven for
almost a century and it still seems like science fiction.
They call it ethanol, an alcohol fuel made from produce,
including corn - a somewhat strange convergence of our
kitchens and garages. Officials
at every level of government have high hopes for this
on-again, off-again fuel, which you've probably used
without knowing it.
Ethanol and other "eco-fuels" have far-reaching effects in
both domestic and foreign policy, experts say, even a link
to how many new roads can be built in Ohio. In Northeast
Ohio and the rest of the state, ethanol has social,
political and economic hurdles to jump through before it
can truly compete with petroleum. However, if Ohio's
representatives have a say, ethanol production will get a
jump-start in this state, including Northeast Ohio.
The 'alternative' fuel
Proponents hail ethanol as a clean burner, because its
high oxygen content makes it burn more completely. That
means less carbon monoxide - and more carbon dioxide (the
stuff plants "breathe") - is released, according to
research.
Ethanol is used more heavily in cold climates and places
with long winters, because you don't need as much ethanol
to increase oxygen content, according to research. It
can't be used as much in summer, because it evaporates
quickly. That evaporation can contribute to ozone layer
degradation, the energy department says.
Some proponents say extended ethanol use could cut U.S.
dependence on foreign oil. Right now, Ohio uses about 2
billion gallons of ethanol every year. Most of it gets
used at gas stations, where various percentages are
blended with gasoline.
They've got corn farmers in mind, they say.
"Ethanol is produced from corn; therefore, when we use
ethanol, we are supporting our agricultural community,"
state Representative Timothy J. Grendell, R-Chester
Township, stated in a press release.
Grendell, whose district includes all of Geauga County in
Ohio, is one of the co-sponsors on multiple pieces of
ethanol legislation. He issued the statement September
26, after Governor Bob Taft signed House Concurrent
Resolution 25, which aims to change the way ethanol is
taxed. The same day, Taft signed Senate Bill 144, which
creates tax incentives and bond financing for the
manufacture and production of ethanol in Ohio. It was
probably not a coincidence that both pieces of legislation
were signed on Ohio's "Ag Day," which celebrates state
agriculture.
Turmoil in the Middle East also has sent legislators
looking for oil alternatives, especially those lawmakers
who are on the Agriculture and Natural Resources
Committee. Why? They want to avoid crises such as the
energy crisis around World War II, and the 1970s fuel
shortage during the Nixon administration.
Where's the gas?
Ethanol was a fuel extender during the oil crisis from
October 1973 to March 1974, when Arab nations banned oil
exports to the United States. The combination of about 90
percent gas and 10 percent ethanol was simply dubbed
"gasohol". That's a name that dredges up good and bad
memories for those who lived through the time. The oil
ban was partly a response to U.S. support of Israel during
the Arab-Israeli War. It caused a petroleum shortage and,
subsequently, long lines around service stations.
Running on corn
You could use the alcohol fuel in Henry Ford's famous
Model T, way back in 1908. Make a slight modification to
the Model T's engine, and the granddaddy of automobiles
could putt down the street on pure alcohol, according to
the U.S. Department of Energy.
A Kansas-based alcohol plant could pump out 18 million
gallons of ethanol a year by 1938, according to the DOE.
That year, the alcohol supplied 2,000 Midwest service
stations.
Both the Ohio House and Senate seem to want Ford's legacy
of ethanol support to survive, possibly while creating
legacies of their own.
Taft's signing of Senate Bill 144 on September 26, 2002
created the Ethanol Incentive Board. It also provides for
tax credits of up to $5,000 for investors of ethanol
plants.
Ethanol and ODOT
Perhaps the biggest hurdle for ethanol to clear is a tax
conflict with the Ohio Department of Transportation.
Ethanol in Ohio is federally taxed at 13.1 cents a
gallon. Those taxes go into the Ohio's Highway Trust
Fund, which is used for new construction in Ohio.
Gasoline is taxed at a rate of 18.4 cents, meaning more
money goes into the Highway Trust Fund when gasoline is
used.
Perhaps more problematic, ODOT Communications Director
Brian Cunningham said, is that a tax of 2.5 cents a gallon
on ethanol goes into the federal general fund.
"If that was kept in the (Highway Trust Fund), it would
create $50 million per year," Cunningham said.
Cunningham said redirecting that 2.5 cents is part of
Governor Taft's primary federal initiative.
But Weber, speaking over the Iowa Ethanol Hotline, says
all of this can be summed up simply.
"When people go to a gas station, they're going to buy the
cheapest thing that's there," he said. |
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-by
Mikkel Pates of Grand Forks Herald, September 22, 2002
"BANKRUPT TERRORISTS! Foreign Oil Funds Terrorism. Use
Ethanol, Biodiesel and Other USA Fuels."
That's what a 48-foot-wide billboard message from area
Veterans of Foreign Wars posts in northeast South Dakota
screams out on the southbound Interstate 29 near the town
of Summit. The sign went up near the Coffee Cup truck stop
Friday and a media event is planned Thursday. The
billboard depicts an airliner, attacking a city, with oil
barrels under its wings in places that would carry bombs
on bombers.
"Home-grown Made in USA energy meaning ethanol, solar,
biomass and other sources is the way out of our reliance
on costly oil from abroad that winds up putting money into
terrorist pockets," explains Shawn Richart, commander of
the Milbank, South Dakota, VFW Post 3489.
Richart said his group's members have fought foreign wars
to aid U.S. security and now "need to fight a new war at
home" to make the connection between foreign oil and
politics.
The VFW message was approved at the national level. It is
the brainchild of Orrie Swayze, a nearby Wilmot, South
Dakota, farmer and ethanol promoter. Swayze first took the
idea to corn grower organizations in North Dakota and
South Dakota but they passed on the idea.
Swayze says the campaign exploits 9/11. "In my view,
what's worse is to do nothing and not recognize the
implications of foreign oil funding terrorism. (People)
readily say the drug trade funds terrorism."
Swayze said the message on the billboard is consistent
with the VFW's Resolution 465, which says that by the year
2020, 67 percent of U.S. oil requirements will come from
"unstable foreign sources that do not share our democratic
values" and that America can "reduce its dependence on
foreign oil through better energy conservation measures
and by producing more oil and other types of energy right
here in our own country."
Also on Thursday, the same message will appear on fuel
pump "topper" advertisements at service stations operated
by Bigstone Cooperative, which sells E85 fuels which are
85 percent ethanol, made from corn. A month ago, the
Northern Lights ethanol plant near Big Stone City, South
Dakota, became one of the latest plants to start
production in the region.
"I just wish we could put one on the back of (Osama) bin
Laden's camel," says Mel Domine, manager of the
cooperative. |
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Ethanol
Plants Nationwide to Face Tougher Standards |
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-from Associated Press, September 21, 2002
Wisconsin ethanol plants will have to include modern
emissions systems to comply with new, more stringent
federal clean air rules.
Ethanol plants will be asked to pass emission tests for
chemicals such as acetic acid, formaldehyde, carbon
monoxide and acrolein, said Steve Rothblatt, director of
the air and radiation division of the Environmental
Protection Agency in Chicago.
Only one ethanol plant is already operating in the state,
in Stanley, another will start operating by the end of
this month and two more are planned. Rothblatt said
ethanol plants were previously required to test only for
ethanol and methanol emissions, but the tests were added
after neighbors of a former brewery-turned ethanol plant
in St. Paul complained of sickness and odor from
emissions.
"It was then discovered that there was much more in the
emissions, more hazardous than originally thought,"
Rothblatt said. "It was a matter of ignorance; they just
didn't know."
Corn is used to produce ethanol, a gasoline additive that
produces fewer emissions when burned.
In Minnesota, twelve of the state's fourteen ethanol
plants face possible EPA fines because of their emissions.
Installing a device called a thermal oxidizer is the best
way to eliminate the chemicals, Rothblatt said. The
devices, which burn odor particles before they are
released into the air, cost between $1 million and $2
million to install.
But when Ace Ethanol opened a $30 million ethanol plant in
Stanley earlier this summer, officials did not opt for a
thermal oxidizer. The facility's emissions already are
lower than the new EPA standards because it is a small
facility, plant manager Terry Kulesa said.
He said Ace also uses a dryer system that burns at a lower
temperature to create lower emissions. The plant is
expected to have its first emissions checks early next
year, he said.
"We built with the new specifications in mind," he said.
"All these newer plants are aware of it and would build
accordingly."
Kulesa said the company would install a thermal oxidizer
if the facility expands in the future.
The $56 million Badger State Ethanol plant in Monroe is
expected to begin operating later this month and will
produce 40 million gallons of ethanol, using 14.6 million
bushels of corn a year.
Vice President John Malchine said the Monroe plant would
have thermal oxidizers for emission control, for their
heating system and their heat recovery system.
Western Wisconsin Renewable Energy Co-op, the group
seeking to build a $56 million ethanol plant in Dunn or
St. Croix county, plans to include a thermal oxidizer in
its farmer-owned ethanol plant, said spokesman Andy
Bensend.
"We chose in our plant to start out with the best
available technology, and that's a thermal oxidizer,"
Bensend said. The WWREC plant is expected to produce 40
million gallons a year - a large amount.
"The pollution that comes from an ethanol plant does not
come from ethanol production," Bensend said. "It comes
from using natural gas to dry the feed byproduct."
Trevor Guthmiller, Executive Director of the American
Coalition for Ethanol in Sioux Falls, South Dakota said he
doesn't expect ethanol plants to face fines as long as
they upgrade their facilities to meet the new standards.
”To punish them when they didn't know it was there isn't
productive," Guthmiller said. "As the industry grows,
we're learning more about the process." |
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At the time this is being written, October 10, 2002,
optimism regarding Congressional completion of a major
overhaul of the nation’s energy policy is waning. Issues
such as climate change, drilling in the Artic National
Wildlife Refuge, electricity restructuring, and other
contentious matters have apparently driven Congressional
leadership to “pare down” expectations and consider what
might be called an “Energy Bill Lite”.
To accurately report on the status of the negotiations
regarding the energy bill would really only be a guess.
The issues are changing moment to moment and to call the
negotiations fluid is an understatement. To be certain,
hard work, intensive negotiations, and complex discussions
are ongoing. Leadership of both the Senate and House has
restated their commitments to send an energy bill to the
President. What form, function, or impact such bill will
or more likely would have, remains to be seen.
If and when the 107th Congress does report a
final energy bill, the NEVC will provide a special edition
of the FYI that will highlight the aspects of the
legislation which might be of importance to advocates of
alternative fuels. |
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Former
President Carter Calls for Development of Biobased
Alternative Fuels |
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In a joint meeting of Legislative Committees established
by the Georgia General Assembly to study the development
of an ethanol and biodiesel industry in Georgia, former
President Jimmy Carter encouraged the committee members to
work hard, develop good public policy, and establish such
renewable fuel programs in the state.
President Carter, also former Governor of Georgia, spoke
to the Georgia Joint Ethanol Production Committee and the
House Biodiesel Study Committee on September 26, 2002 in a
meeting held in the Georgia state capital. President
Carter reminded his former colleagues that he had worked
to develop a renewable alternative fuel program for the
nation in the mid to late 1970s and, while the production
of biobased fuels had grown since that time, hydrocarbon
use continued to increase and dominate the nation’s
transportation fuels sector.
President Carter applauded the leadership of the Georgia
General Assembly to establish the interim committees
addressing how the state might develop such an indigenous
fuels development program. “Whether from peanut hulls,
corn, soybeans, or waste materials, the state and nation
must develop a renewable energy program that advances
environmental stewardship, domestic job creation, and
national energy independence.”
In addition to President Carter, Phil Lampert, Executive
Director of the NEVC was also invited to attend and speak
to the Joint Committee as was Dr. Shaine K. Tyson, Manager
of the Renewable Diesel Project at NREL; Dr. Marlin
Gottschalk, of the Georgia Environmental Protection
Division; and Mr. Dennis Griffin, owner and President of
Griffin Industries.
The Committee is scheduled to prepare a final report for
submission to the General Assembly by the end of December
2002. In turn, the next session of the Georgia
Legislature will then begin consideration as to what, if
any, measures might be adopted to develop a local ethanol
and biodiesel industry. |
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Member
Spotlight - MO Corn Growers Association |
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 The
Missouri Corn Growers Association (MCGA) was organized in
1978 and Don Fischer of Corder, Missouri was elected as
the first president. A referendum to establish a one-half
cent per bushel check-off in Missouri was passed by
farmers in 1984 thus forming the Missouri Corn
Merchandising Council (MCMC). A 13-member board of
farmers directs both MCGA and MCMC.
MCGA is a grassroots organization of
farmer-members dedicated to increasing the profitability
of corn production by: developing and expanding corn
markets, collecting and distributing information, building
coalitions with organizations and industries, and
participating in the governmental process.
MCGA works on key agricultural issues such as increasing
the market for ethanol, a clean-burning fuel from corn. It
fights for pro-agriculture legislation and works to secure
funds for needed corn-product research. MCGA is highly
involved in promoting environmental stewardship while
protecting the producer's right to farm profitably. The
association educates both farmers and consumers, and
provides college scholarships to young people interested
in a career in production agriculture. In addition, MCGA
works with the National Corn Growers Association (NCGA) to
promote sound federal agricultural policy.
“Our mission is to improve the profitability of corn
production. One of the best ways to do that is to expand
the use of corn to make clean-burning ethanol,” said Gary
Marshall,
the
Chief Executive Officer of MCGA and MCMC.
“The nearly two million flexible-fuel vehicles that can
burn E85 is an important, growing market for ethanol made
from corn. We believe this market will continue to grow
at an exponential rate over the next 3-5 years.”
Gary D. Marshall has been employed as Executive
Director/CEO since November 1988. Mr. Marshall was also
elected the Chairman of the National Ethanol Vehicle
Coalition this past year.
“MCGA and MCMC is a proud member of the National Ethanol Vehicle
Coalition because we believe it’s important to expand E85
fuel sales in Missouri and across the United States,” said
Marshall.
When asked what he thought could be done to advance the
use of E85, Marshall added, “Automakers have made an
incredibly strong commitment by producing flexible fuel
vehicles capable of burning E85. We’d like to see them
make a stronger commitment to educating their sales forces
on the availability of the vehicles and the benefits of
ethanol fuel. A long-term, nation-wide commitment to
selling E85 by one of the major fuel companies would be a
watershed event for the future of the fuel. Shorter term,
passage of the Energy Bill including E85 incentives from
the Senate version of the bill would definitely level the
playing field for E85 versus gasoline.”
The
NEVC is proud to have MCGA/MCMC as one of their strongest
members! They are a key contributor in helping to
decrease our dependency on foreign oil.
“Corn farmers have made a major commitment to helping
America reduce our dangerous dependence on foreign oil,”
Marshall concluded. “We’re investing in new ethanol plants
to produce more renewable, environmentally-friendly energy
right here at home. Thus, if you say you believe in the
fuel, put your money where your mouth is and buy
American-made ethanol at your local fuel station every
time you fuel up.”
MCGA and MCMC contract with the National Ethanol Vehicle
Coalition to expand E85 fuel sales in Missouri and across
the United States. For further information on MCGA and
MCMC, please visit Missouri Corn Online at
http://www.mocorn.org.
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October 15, 2002
Ethanol Workshop for Rural America at the Holiday Inn in
Billings, MT. Kickoff banquet on October 14 in the
Stillwater Room of the Holiday Inn at 5500 Midland Rd.
For more information, visit
www.ethanolmt.org.
October 22-26, 2002
2002 National Conference of State Fleet Administrators in
Mystic, CT. For more information, contact (623) 772-9096.
October 22, 2002The
Greater Long Island Clean Cities Coalition will be hosting
its annual "Advancing the Choice Alternative Fuel Vehicle"
Conference on long Island. For more information, call
631-969-3700.
October 24, 2002
Our
Children, Their Health & Your Buses Conference sponsored
by South Shore Clean Cities at Woodland Park
in Portage, IN. For more information, visit
www.southshorecleancities.org.
October 27-30, 2002
2002
South Carolina Governmental Fleet Managers Association
Conference at the Ocean Dunes/Sand Dunes Conference Center
in Myrtle Beach, SC. For more information, visit
http://www.scgfma.org/default.htm.
October 28-30, 2002
2002
New Mexico Environmental Health Conference at the Historic
Sheraton Old Town in Albuquerque, NM. For more
information, visit
www.nmehc.org.
October 29, 2002
Hampton Roads Advancing the Choice Event in Norfolk, VA.
For more information, contact Nic van Vuuren at
nvanw2@yahoo.com.
October 31, 2002
The City of Tucson - Department of Operations, Pima County
Department of Environmental Quality, Pima Association of
Governments, Pima County Superintendent of Schools, and
Tucson Unified School District and are presenting a
Biofuels Seminar on October 31, 2002 from 7:30 A.M. to
noon at the Tucson Convention Center. For more
information, visit
www.deq.co.pima.az.us.
November 13-15, 2002
International Energy
Conference and Exposition in Reno, NV. Register online at
www.pteinfo.com or email
info@pteinfo.com.
January 9-10, 2003
Southwest Regional Airport Clean Vehicle Conference at the
Sheraton Grand Hotel at DFW International Airport. For
more information email
cap@cleanairports.com or call (303) 462-1647.
February 17-19, 2003
8th Annual National Ethanol Conference: Policy
and Marketing at the Camelback Inn Marriott Resort in
Scottsdale, AZ. For more information, call BBI
International at (800) 567-6411.
February 27 – March 1, 2003
2003 Commodity Classic at the Charlotte Convention Center
in Charlotte, NC. For more information, visit
www.commodityclassic.com.
May 4-7, 2003
25th Symposium on Biotechnology for Fuels and
Chemicals in Breckenridge, Colorado. For more
information, visit
http://www.nrel.gov/biotech_symposium/
June
16-19, 2003
BBI International’s International Fuel Ethanol Workshop
and Trade Show at the Sioux Falls Convention Center in
Sioux Falls, SD. For more information, visit
www.bbiethanol.com or email
conferences@bbiethanol.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
Michelle Saab, Director of Communications
info@e85.com
Randa Barker, Director of Administration
info@e85.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. |
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