National Ethanol Vehicle Coalition - FYI Newsletter, Volume 6, Issue 14 November 28, 2001

In This Issue.  .  .

e85 will reduce the increase of Co2 emissions

Heat-trapping carbon dioxide emissions jumped 3.1 percent in the United States last year, the biggest increase since the mid-1990s, the Energy Department reported November 9, 2001.

Carbon dioxide emissions in 2000 were nearly 14 percent higher than in 1990, the department's Energy Information Administration said. The global warming pact that President Bush (news - web sites) rejected this year commits industrial countries to rolling back ``“greenhouse'' gas emissions to 1990 levels.

The unusually large increase in U.S. carbon dioxide emissions was the result of strong economic growth in 2000, more use of fossil fuels due to colder weather and a drought that impeded hydroelectric power generation, the agency said.

Most prevalent among those greenhouse gases, whose growing concentration in the atmosphere is believed to be warming the earth, is carbon dioxide from burning fossil fuels. Many scientists believe the warming, if not stopped, will cause severe climate changes over the next century.  E85 is the only fuel used to reduce emissions of greenhouse gasses.

Bush has said climate change should be dealt with through voluntary actions and using technology to curb emissions in a way that won't harm the U.S. economy.

The latest carbon emissions numbers ``underscore the urgent need for the United States to begin cutting its emissions,'' said Eileen Claussen, a former State Department climate treaty negotiator and now head of the private Pew Center on Global Climate Change.

According to the Energy Department, the United States released 1,583 million metric tons of carbon from fossil fuel burning in 2000, or 47 million metric tons more than in 1999. The 3.1 percent growth rate was the biggest since a 3.6 percent increase in 1996.

The amount of carbon dioxide released from fossil fuel burning in 2000 was 13.6 percent, or 228 million metric tons, more than that released in 1990, the agency said.

Transportation, mostly exhaust from motor vehicles, accounted for 515 million metric tons, or 33 percent.

Use of E85 will help reduce these toxins in our atmosphere.  Two types of emissions are released by E85 vehicles:  exhaust and evaporative.  Ethanol-fueled vehicles can further reduce pollution from emissions by a modest, but meaningful, amount.  Compared with gasoline-fueled vehicles, most ethanol-fueled vehicles produce lower carbon monoxide (CO) and carbon dioxide (CO2) emissions and the same or lower levels of hydrocarbon (HC) and nonmethane hydrocarbon (NMHC) emissions; nitrogen oxides (NOx) emissions are about the same or even less.   E85 has fewer highly volatile components than gasoline and so has fewer emissions resulting from evaporation.  For cleaner air, use E85!

GM to make full-size pickups that run on ethanol

DETROIT, Nov 27 (Reuters) - General Motors Corp. <GM.N> said on Tuesday that Monsanto Co. <MON.N> has placed the first 50 orders for its new Chevrolet Silverado full-size pickup trucks that run on a blend of ethanol and gasoline. 

GM, the world's largest automaker, said it will begin offering the so-called "flex fuel" option on the 1500 series Chevrolet Silverado and GMC Sierra full-size pickup trucks with the 5300 Vortec engine in the first quarter of next year at a cost of around $250.

The trucks can run using E85, a blend of up to 85 percent ethanol and gasoline, or using pure gasoline. Ethanol, typically made from corn products, produces less air pollution than gasoline, and reduces the dependence on foreign oil, GM said.

GM also offers the Chevrolet S-10 and GMC Sonoma compact pickups, and Chevrolet Tahoe and Suburban and GMC Yukon and Yukon XL sport utility vehicles with E85 compatibility.

"We expect the demand in this area to grow," said GM spokeswoman Denise Sedman.

Demand for ethanol blend vehicles has been limited by the higher cost for the fuel, and its availability at just over 100 filling stations across the United States. For building the vehicles, GM also receives a credit toward federal requirements on fuel economy, regardless of whether the trucks ever burn ethanol.

Sedman said that an estimated 1.2 million vehicles in the United States are equipped to run on the E85 ethanol blend. However, industry analysts estimate that most drivers fill up the vehicles with gasoline only.

Commenting on the GM and Monsanto announcement, Hal Smedley, Chairman of the National Ethanol Vehicle Coalition stated, “The announcement by General Motors that they will be producing full size pick up trucks capable of operating on E85 is a major step toward filling a huge void in the FFV marketplace.  SUVs and pickups make up more than 50% of the vehicles being sold in the U.S. and having both the GM SUVs and pickups in the 5.3 liter engine available in E85 is a major step.”

“We are very proud to have General Motors as a member of the National Ethanol Vehicle Coalition and will look forward to working with GM and all the automakers to continue to promote this excellent form of alternative transportation fuel.”

E85 is the only alternative fuel available for use in internal combustion engines that is 100% domestically produced!

A Push for Renewable Fuels:

Former CIA director warns of danger in relying on Mideast oil

From November 5, 2001, Volume 2, Issue 45 Oilspot News

The U.S. should lessen its strategically perilous dependence on Middle East petroleum by promoting processing technologies that could render fuel from agricultural wastes, grasses and indigenous crops, former CIA director James Woolsey said in testimony before the House Energy Subcommittee on November 5.

"We have to realize that the United States' fuel and energy distribution and transmission systems will almost certainly be subject to attack," Woolsey said. "We ought to always be looking at ways to decentralize and make more flexible and less fragile our energy distribution network."

According to a United Press International report, Woolsey called for a greater reliance on renewable fuels and alternative energy for transportation. Transportation currently accounts for roughly 60 percent of U.S. oil demand. The former CIA director, who has recently suggested that Iraq is behind the terrorist assaults on America, said the United States' dependence on foreign oil, and particularly the world's dependence on oil from the Middle East is "bad and getting worse."

"The Middle East, outside of Israel and Turkey (which have no oil producing capacity), is composed of pathological predictors or vulnerable autocrats," he said. "This is not a recipe for long term stability."

Renewable and alternative fuel credits are needed to spur consumer acceptance, he said, adding that the U.S. needs to take a closer look at technologies that can create fuels from various forms of waste, including agricultural waste from packing plants and pig farms.
The technologies can be used to produce cellulosic ethanol, a fuel that could be created from virtually any plant or plant product.

"Remember that biomass ethanol doesn't come from the Middle East and it doesn't contribute to global warming," Woolsey said."

Wisconsin GOVERNOR ANNOUNCES E85 INITIATIVE AWARD:

Seven stations in southeast Wisconsin to sell E85 alternative fuel

From the Office of Governor Scott McCallum’s website

Gov. Scott McCallum visited the University of Wisconsin-Milwaukee (UWM) Center for Alternative Fuels on November 5, 2001 to announce the award for the E85 Infrastructure Development Initiative for Southeast Wisconsin. The governor joined Chancellor Nancy Zimpher from UWM to announce that Bulk Petroleum, Inc. is the recipient of the E85 Infrastructure Development grant based on its proposal to site E85 fuel pumps at seven stations in southeast Wisconsin.

"There are thousands of vehicles on the road right now in Wisconsin with flexible fuel engines," Gov. McCallum said. "However, until now, consumers have not had an opportunity to take advantage of that fuel flexibility.  The E85 Infrastructure Development Initiative will provide southeast Wisconsin with an alternative fuel for flexible fuel vehicles (FFVs) already on the road. E85 also helps Wisconsin farmers, the environment and our economy by lessening our dependence on foreign oil."

There are more than 1.5 million FFVs on the road nationwide. More than 80 percent of the state of Wisconsin’s fleet are E85 vehicles. Vehicles used by UWM are also alternative fuel vehicles, running on compressed natural gas.

"Currently, Wisconsin must import 100 percent of its alternative fuels," Gov. McCallum said. "But I just broke ground on an ethanol plant in Stanley and we have plans to break ground on four more. By the end of next year, we could be producing up to 65 million gallons of ethanol a year."

The governor thanked the Wisconsin Corn Promotion Board, the U.S. Department of Energy, the Illinois Corn Marketing Board and Ford Motor Company for funding the initiative and being part of a strong public-private partnership. Gov. McCallum also thanked Darshan Dhaliwal of Dhaliwal Enterprises, Inc. (parent company of Bulk Petroleum, Inc.) for his generous donations to the September 11th fund.

Hoping to Fuel Demand With Supply 

By Anita Huslin from The Washington Post

Published on Thursday, November 15, 2001

For nearly a decade, state and federal governments have been buying fleets of vehicles capable of running on a cleaner-burning mixture of gasoline and ethanol.

Few of the vehicles, however, have ever had a drop in their tanks because the blend is available at just 101 fuel stations nationwide -- most of them in the Midwest. 

On November 14, a mom-and-pop Chevron in Laurel became the first fuel station in Maryland and only the second in the mid-Atlantic region to offer E85, a mixture of gasoline and an alcohol fuel distilled from corn or other grains. The blend has been touted as an alternative to foreign oil and as being gentler on the environment, though the environmental claim has been debated.

Maryland Energy Administration officials hope to open E85 pumps in Annapolis, Gaithersburg and Baltimore in the next year.

At a pump festooned with red, white and blue flags, beaming auto manufacturing representatives and farmers applauded as the first state vehicle -- a standard-issue white Ford Taurus -- was filled with the blend of 85 percent ethanol, 15 percent gasoline.

"If you want people to use the fuel, you've got to provide the stations where they can buy it," said Richard F. Pecora, deputy secretary of the Maryland General Services Administration.

Aiming to reduce petroleum consumption and greenhouse gas emissions by boosting the use of alternative fuels, the federal Energy Policy Act of 1992 required that vehicles capable of running on alternative fuels make up 75 percent of state government fleets.

Under a U.S. program to encourage development of such vehicles, auto manufacturers have received credits for producing ethanol-burning cars, trucks and sport-utility vehicles. Those credits allow the companies to build more vehicles that get lower average gas mileage. But because ethanol fuel is sold in just 20 states and, consequently, many alternative fuel vehicles are burning regular gasoline, the program has actually increased pollution, a U.S. Department of Transportation draft study concluded this year.

"Given the slow rate of growth in the alternative fuel infrastructure, it does not appear likely that any energy conservation and environmental benefits will be realized through2008 unless strong financial incentives are put in place," the report said.

After talking for more than a year with oil companies, none of which expressed any great interest in opening an E85 pump in Maryland, officials came upon Kevin Falls's Chevron Service Center.

It's a modest two-bay repair and fuel station just up the road from Fort Meade and the National Security Administration, two federal installations with growing fleets of alternative fuel vehicles. Officials lined up a U.S. Energy Department grant that would cover the cost of installing the pump, so Falls agreed.

He is selling E85 for the same price as premium gasoline -- $1.33 a gallon -- and figures that if nothing else, it will bring more customers to the part of his business that turns a profit.

"The more people you get at the pump, the more jobs we get in the [repair] bays," Falls said. "I figure this'll only help with that."

Jobs are what farmers from the Maryland Grain Producers Association see in Fall’s E85 pump. They tout the fuel as a way to boost demand for corn, soybeans and other grains. "It's going to mean money in our pockets with an increase in grain prices," said Donnie Tennyson, association president.

The group is looking into building the East Coast's first ethanol production plant in Maryland, in the same way it has been done in the Midwest. There, farmers have raised money to build and operate plants that convert their corn, soybeans and other crops into ethanol, which is then mixed with gasoline and sold at service stations primarily in Illinois, Iowa and Minnesota.

Officials estimate that as many as half a million vehicles in the Washington region can run on an ethanol fuel mix. Only one other station in the region sells E85 -- the Navy Annex Citgo in Alexandria, near the Pentagon.

With the opening of the E85 pump in Laurel, local auto dealerships said they will begin notifying customers who have bought alternative fuel vehicles. They also said their salespeople will make the fuel option part of their pitch.

"If you have the motivation and the fuel, we have the vehicles," said Michael Paritee, manager of alternative fuels and government sales for General Motors. Several of its vehicles -- including the 5.3-liter Suburban, Tahoe, Yukon and Yukon XLS and S-10 pickups -- can run on E85.

"I'd like to think that 10 years from now our farmers will be growing a lot of our energy," said Michael Heller, of the Chesapeake Bay Foundation. "Not just corn and barley, but warm-season grasses that can soak up nutrient pollution, then be harvested and turned into fuel."

Promotions Prove to be Beneficial for E85 in Minnesota

Promotions of E85 hits Duluth! FFV drivers in northern Minnesota can now find E85 at Holiday Stationstore #85 in Duluth [9314 W. Skyline Parkway (Spirit Mountain exit off I35)].  The station is located on the south end of the city and is easily accessible to travelers along Interstate 35.

More than 70 FFV drivers attended the 3-hour "Free E85" event at Holiday Stationstore #247 in Eagan on Monday, November 19th. Those who attended received up to 15 gallons of E85, FFV and E85 information, Ford gift bags, E85 coupons and a clean windshield!  Special guests at the event included employees from Dakota Electric, MN Department of Transportation, Cargill, MN State Lottery, US General Services Administration, and Reliant Energy Minnegasco.  The event was sponsored by Inver Grove Ford, Holiday Stationstores and the MN E85 Team.

Tim Gerlach, Clean Cities Coordinator for Minnesota, comments why the promotions work for E85, “Never under-estimate the marketing power of  ‘Free Fuel’.  Once people realize there's no catch . . . they're very grateful. It’s a positive reflection on the Ford dealer, the E85 station and the MN E85 Team partners.”

Another promotion was held, Monday, November 26th, 2001, from 4-7pm.  It took place at the Holiday Stationstore #317 at 2725 Campus Drive, Plymouth  (just east of I494 on Hwy 55).  The sponsors included Holiday Stationstores and Morrie's Minnetonka Ford.

“There are many other benefits of the promotional events which include:  dealership and fuel station personnel education, non-FFV customers asking questions, and media attention with ‘Who's crazy enough to give fuel away,’” Gerlach stated. “FFV drivers find out about the capability of their FFV and they find the E85 station. Our follow-up thank you's include coupons to get them to return and become loyal customers.”

E85 MESSAGE IN STATE EMPLOYEES’ PAY STUBS

Approximately 70,000 Minnesota state employees will find an E85 message on their pay stubs soon. Mike Taylor of the MN Dept. of Commerce took advantage of the opportunity to remind state employees of the E85 choice.  The message will read:  "Fuel American! The State owns over 1000 E85-capable vehicles. E85 is a clean, renewable fuel that is made in Minnesota. Visit www.CleanAirChoice.org or call 800-642-5864 for info on E85 fuel sites and vehicles.  Fuel state vehicles with E85!"

Construction on Three New Ethanol Plants Begins:

1 Nebraska and 2 Iowa Plants Break Ground – 16 Plants Under Construction

The farmer-owners of three ethanol plants have begun construction.  Pine Lake Corn Processors LLC in Steamboat Rock, Iowa, and Husker Ag Processing LLC in Plainview, Nebraska both held groundbreaking ceremonies on November 16.  Little Sioux Corn Processors LP in Marcus, Iowa, broke ground on November 19.

The Pine Lake Corn Processors plant will produce 15 million gallons of ethanol per year.  “The opportunity to provide added value to local agriculture through the development of an ethanol facility has never been greater,” said Matt Crouse, Pine Lake project coordinator.  “It is time farmers and their families take hold of their future and create their own security and stability.”

The Husker Ag Processing plant will produce 20 million gallons of ethanol per year.  Fagen, Inc. – the Granite Falls, Minnesota design-build contractor – is spearheading the project.  Fagen is also building the 40 million gallon per year Little Sioux Corn Processors plant.  In total, Fagen is building six of the sixteen ethanol plants under construction today.  “We’re pleased to work with these two groups to turn dreams into reality,” said Wayne Mitchell, Fagen’s vice president for technology and business development.  “This makes five ‘greenfield’ ethanol projects we’ve begun this year.  Obviously it’s an exciting time to be a part of the growing ethanol industry.”

Since 1999, more than a dozen ethanol production facilities have opened and several major expansions to existing facilities have been completed.  Today, 57 ethanol plants have the capacity to produce over 2 billion gallons per year.  There are 16 ethanol plants currently under construction that encompass over 400 million gallons of new production capacity.  Dozens of additional production facilities across the country are in various stages of development, engineering and financing.

NEVC Calendar

December 5, 2001

Grand Opening of new E85 refueling site in Denver, Colorado.  Contact info@e85.com for more information.

December 5, 2001

Project Clean Air Annual Meeting at Hodel's Restaurant in Bakersfield, California from 12 noon to about 1:30 pm.  For more information, call 661-833-5740 or email at iwantcleanair@netscape.net

December 6, 2001

Colorado Ethanol Workshop in Yuma, Colorado.  Contact Harold Smedley at hsmedley@rmi.com for more information.

December 11, 2001

Governors’ Ethanol Coalition meeting - Greensboro, North Carolina.  Call Gerri Monahan at 402-471-2941 for questions.

December 12, 2001

Ethanol Workshop for Rural America in Greensboro, North Carolina.  For more information, visit www.ethanolmt.org.

December 14, 2001

GEC International Development Seminar in Washington, DC.  For more information, call Sustainable Energy Strategies, Inc. at (703) 322-4484.

January 6-7, 2002

Farm Bureau Showcase 2002 at the Reno Hilton Hotel in Reno, Nevada.  Contact Marsha Purcell, Showcase Manager at (847) 685-8764 or at marshap@fb.org for questions.

January 9-12, 2002

PMAA Motor Fuels & Lubes Conference at the Camelback Inn Marriott resort, Golf Club & Spa in Scottsdale, Arizona.  For registration or more information, visit http://pmaa.org/public/meet/.

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.

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