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Budget Shortfall May
Spell Trouble for E85 Group
Earlier this week, the U.S. Department
of Energy announced 16 winners of its $3.1 million
funding solicitation to increase the use and access
of E85 (85% ethanol, 15% gasoline), but one name not
on that list--the National Ethanol Vehicle Coalition
(NEVC)--may spell trouble for the very organization
dedicated to expanding the alternative fuel.
In April, DOE
issued a three-part competitive bid solicitation related
to E85--the first part, for $1.5 million, was for refueling
infrastructure for E85 and other alternative fuels,
while the second and third relate to the incremental
cost of alternative fuel vehicles and the idle-reduction
training and awareness for school districts.
Thirteen winners were announced for
the first solicitation, including:
--the National Biodiesel Board, for
a terminal installation project);
--World Energy Alternatives, for increasing biodiesel
distribution capacity through infrastructure partnerships
and projects;
--WestStart-CALSTART, for a proposal to build an E85
roadway in
California;
--the New York State Energy Research and Development
Authority, for a retail E85 refueling project;
--the State of
Indiana, for E85/B20 in "replicating biofuels successes
from Lake Michigan to the
Gulf of Mexico;" and
--the State of
North Carolina, for the southeast ethanol and biodiesel
infrastructure corridor project-Georgia,
North Carolina,
South Carolina and
Tennessee.
Funding levels
were not provided for each of the projects.
Teaming up
with the Midwest Corridor Group, the NEVC submitted
one proposal with two projects: continued national
deployment efforts of the NEVC and establishment of
a Midwest E85 corridor. But according to an Aug. 29
letter from DOE, while the agency recognized "the significant
effort expended on the part of your organization to
prepare a response to this announcement," it opted
not to fund its request. No further response was provided
and DOE said it would provide feedback on the strengths
and weaknesses of the application by Oct 31.
NEVC is the
main E85 lobbying arm.
"As a consequence,
of the $1.49 million appropriated by Congress in federal
fiscal year (FFY) 06 "to expand E85 fueling capacity," ZERO
dollars will now go to support national E85 deployment
or the Midwest Corridor effort," NEVC Executive Director
Phil Lampert wrote to his board of directors.
To add insult
to injury, some of the funding for the E85 solicitation
may have been taken from the $2 million in federal
funding earmarked for NEVC in FY05.
But now it
also appears that DOE is "diverting $800,000 that had
been previously awarded to the NEVC from FFY 05 appropriations.
We have a grant agreement in place for $1.8 million
of funding added to DOE's FFY 05 budget by Congress,
but DOE will now limit their award to only $1.0 million
without providing any justification," Lampert said,
according to information provided to OPIS. "Obviously
this additional de-funding of national E85 deployment
will have serious financial consequences. Significant
reductions in staffing, contract support, field activities,
web based materials and most importantly, direct financial
assistance for E85 pump expansion, may all be anticipated," he
added.
"If you share
my concern that the Department of Energy's inexplicable
actions thwart congressional intent and the tremendous
progress we have made to expand access to E85 fuel
across America, I strongly suggest you contact your
elected representatives in the U.S. Senate and House
to express opposition to DOE's efforts to limit the
expansion of E85 fueling capacity," Lampert added.
The DOE official
in contact with NEVC about the apparent funding loss
was traveling on business today and could not be reached.
Similarly, two more DOE officials did not return calls
seeking comment.
-Rachel Gantz, rgantz@opisnet.com
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-30-
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