The links to these articles may become inactive after 9-12 months after the article was published. This varies with the publisher or magazine which sponsored the article.

After you've finished reading the selected article, click on your browser's "back arrow" to return to the Current Ethanol News page.

---

Folly and immorality of E15 EPA's new ethanol mix will punish taxpayers, the environment and the hungry

By Paul Driessen Wednesday, May 2, 2012

READERS: After you read the article below on EPA's new 15% ethanol gasoline, PLEASE read your vehicle's owners manual if you own a 2001 or newer automobile or light truck. While the U.S. EPA claims the new 15% ethanol gasoline or "E-15" (which will be showing in markets later in 2012) is safe for 2001 and newer passenger cars and light trucks, most all vehicle manufacturers of 2001 and newer vehicles (US and Foreign) warn owners NOT to use gasoline with greater than 10% ethanol and further say that any damage caused by gas with greater than 10% ethanol will void the vehicle warranty! E-15 should NEVER be used in vehicles model year 2000 or older as manufacturers warn that engine damage will result. Also, be especially careful when 15% ethanol gas or "E-15" starts showing up in stations in your area. The warning label (see picture of the EPA warning label below which will appear on all pumps dispensing E-15) will claim "Don't use in other vehicles, boats, or gasoline-powered equipment. It may cause damage and is prohibited by federal law" This fuel is also NOT compatible with marine engines, four wheelers, jet skis, snow mobiles, chain saws, all lawn and garden tools and home generators. Use of E-15 in these engines will destroy the engines according to almost all manufacturers. E-15 will likely be priced about 10 cents/gallon cheaper than E-10, but DON'T BE TEMPTED to put it in any of these off road engines, or it could be very costly to you, and you WILL NOT have any recourse. I've taken the liberty to boldface and hi-lite selected important sentences and paragraphs in the following article.

"Pete" Landry

---

As if E10 ethanol mandates aren't folly enough, the Environmental Protection Agency (EPA ) will now permit ethanol manufacturers to register as E15 gasoline suppliers. They will next work to get E15 (15 percent ethanol) registered as a fuel in individual states and persuade oil companies to offer it at service stations - assisted by Team Obama promotional efforts and taxpayer-financed grants, loans and loan guarantees to help station owners install 10,000 blender pumps over the next five years. Regular gasoline has already skyrocketed from $1.85 a gallon when President Obama took office to around $4 today. Many motorists will likely seek to reduce their pump pain slightly by filling their cars, trucks and maybe even boats, lawn mowers and other equipment with presumably cheaper E15 blends. That would be a mistake. E15 gasoline will be cheaper because we already paid for it with decades of taxpayer subsidies that the Congressional Budget Office says cost taxpayers $1.78 every time a gallon of ethanol replaced a gallon of gasoline. Ethanol blends also get lower mileage than gasoline. More ethanol means even fewer miles per tank. E15 savings at the pump mean higher costs per mile. Ethanol collects water, which can cause engine stalls. It corrodes plastic, rubber and soft metal parts. Pre-2001 car engines, parts and systems may not be able to handle E15, which could also increase emissions and adversely affect engine, fuel-pump and sensor durability. Older cars and motorcycles mistakenly fueled (or for the price or convenience) with E15 could conk out on congested highways or in the middle of nowhere, boat engines could die in the face of a thunderstorm, and snowmobiles could sputter out in a frigid wilderness. Homeowners and yard-care professionals say E15's corrosive qualities could damage their gasoline-powered equipment. Because it burns hotter than gasoline, it could also cause lawn mowers, chain saws , trimmers and other power equipment to start inadvertently or to catch fire. The Clean Air Act allows the EPA to grant a waiver for new fuel additives or blends only if it has demonstrated that they will not damage the emission-control devices of "any" engine in the existing inventory. The agency claims to have done so, but lawsuit plaintiffs say it ignored studies that indicate serious potential problems with this high-ethanol fuel blend. Largely because of corn-based ethanol, U.S. corn prices shot up from an annual average of $1.96 per bushel in 2005 to $6.01 in 2011. E15 fuels will worsen the problem, especially in poor crop years. Ethanol mandates mean more revenue and profits for corn growers and ethanol makers. However, skyrocketing corn prices mean beef, pork, poultry, egg and fish producers pay more for corn-based feed; grocery manufacturers pay more for corn, meat, fish and corn syrup; and families see prices soar for almost everything on their dinner table. Even worse, the price of tortillas and tamales also skyrocketed, leaving countless poor Latin American families even more destitute. Soaring corn and wheat prices have also made it harder for the United States Agency for International Development and the World Food Organization to feed the world's malnourished children. This is immoral, and yet we hear ethanol promoters like Growth Energy CEO Tom Buis say, "For 40 years, we have been addicted to foreign oil. Our nation needs E15 to reduce our dependence on foreign oil and keep gas prices down at the pump." Nonsense. America is blessed with centuries of untapped petroleum resources that ecologists, unthinking politicians, EPA officials and subsidy-obsessed renewable-energy lobbyists seem intent on keeping locked up. These deposits cannot be developed overnight. However, 40 years is not overnight. Yet, that's how long America has kept Alaska's Arctic National Wildlife Refuge coastal plain, our outer continental shelf and most of our Western states' public resources off-limits to leasing, exploration and drilling. If we had started 20, 10 or even five years ago, energy from these areas would already be slashing imports and cutting world crude and U.S. pump prices. Within two years of approval, the Keystone XL pipeline would carry more than 800,000 barrels of crude from Canada, Montana and North Dakota every day to Texas refineries - with similar effects. Developing these resources would also generate hundreds of thousands of jobs and billions of dollars in annual government revenues. Instead, we are burning food to fuel cars and trucks. To do so, we are already consuming one-fourth of America's entire corn crop, from an area almost the size of Iowa - and using trillions of gallons of water and vast quantities of petroleum-based fertilizer, insecticides and energy. Anti-hydrocarbon ideologies and "renewable" energy mythologies continue to subsidize crony capitalists and the politicians they help keep in office - on the backs of taxpayers, ratepayers, motorists and hungry people. The EPA and environmental activists must end their animosity toward petroleum and obsession with biofuels - and start embracing reliable, affordable energy that actually works. Paul Driessen is senior policy adviser for the Committee for a Constructive Tomorrow and author of "Eco-Imperialism: Green Power, Black Death" (Merril Press, 2 010).

---

US not ready for higher blend of ethanol: Oil industry

by Christopher Doering | May 3, 2012

http://blogs.desmoinesregister.com/dmr/index.php/author/christopher-doering

A group representing the oil industry said on Thursday about half of retail outlets in the United States are not equipped to handle a new blend of ethanol called E15, a problem it said could result in damaged equipment, safety problems and pose a threat to nearby soil and water. The American Petroleum Institute, which represents 500 oil and natural gas companies, told reporters the Environmental Protection Agency acted "prematurely" in approving E15 - a blend of 15 percent ethanol and 85 percent gasoline. The group has said more testing is needed. Most gasoline sold in the United States is a mix of 10 percent ethanol. "EPA has not done its homework before introducing E15 to America," said Bob Greco, API group director for downstream and industry operations. "The agency's enthusiasm for E15 has clouded its judgment and led to approval of a fuel before adequate study has been done." Gas stations could have trouble making sure all their equipment is compatible with the fuel, API said. If not, fuel could leak and hurt the environment. The EPA, which approved the new blend in January 2011, must complete a series of steps before E15 can go on sale in order to prevent misfueling and ensure that the fuel is properly marked and sold. The blend has been approved for use in cars and light trucks built since 2000, but it is banned from older vehicles and light equipment. A spokesman with the Renewable Fuels Association, which represents the ethanol industry, said just because some upgrades may be needed is not a good enough reason to ignore the new ethanol blend. "The nation didn't have the infrastructure in place for a transcontinental railroad, but that didn't stop us from moving forward because it was in the best interest of the nation," said Matt Hartwig, a spokesman with the RFA. "The same is true with America's fueling infrastructure. Because some upgrades may be needed is no reason to accept the status quo as the best we can do." A federal renewable fuel standard mandates the use of 13.2 billion gallons of alternative fuels in 2012, with most of it coming from corn. By 2022, the figure would require 36 billion gallons to blended into transportation fuel. "The availability of E15 will increase America's energy security and spur additional job creation," Agriculture Secretary Tom Vilsack said in a statement. "Increasing the percentage of ethanol to be blended with gasoline will help boost economic growth while lessening the nation's dependence on foreign oil." A small number of fueling stations have the pumps necessary to dispense ethanol. The Obama administration has committed to providing incentives to U.S. gasoline stations to install more pumps with a higher blend of ethanol in an effort to boost consumption of the renewable fuel. Vilsack said last year the administration hoped to install 10,000 flexible fuel pumps nationwide in five years. A broader distribution of blender pumps could help companies such as Sioux Falls, SD-based Poet, Archer Daniels Midland, and Green Plains Renewable Energy sell more ethanol. Corn-based ethanol has been touted by the ethanol industry and American farmers who supply corn as a way to reduce U.S. dependence on imported oil, create jobs and boost income for rural communities. Among the arguments from critics, ethanol leads to food inflation by driving up the cost of meat and poultry.

---

E15: A Fuel Before Its Time

Associated Press | May 4, 2012

http://www.api.org/news-and-media/testimony-speeches/2012/bob-greco-remarks-press-briefing-teleconference-on-e15-infrastructure.aspx

E15 - gasoline containing 15 percent ethanol that has EPA approval - is one of those ideas that looks good on paper but seems headed for problems in the real world. API's Bob Greco, director for downstream and industry operations, outlined some of them for reporters during a conference call : * Testing so far shows the higher concentration of ethanol would not be fully compatible with much of the dispensing and storage equipment the nation's gas stations. A recent API review estimated half of the existing retail outlet equipment isn't E15 compatible.

* As a result, there could be damage to equipment, safety problems and potential environmental concerns at gas stations.

* Difficulties with E15 getting into the market could erode public support for the nation's renewable fuels program.

* Refiners could face problems in the future, caught between satisfying federal requirements for blended fuels and the lack of a retail market for those fuels.

Greco said EPA's E15 approval isn't a mandate to sell and that the timing of its emergence into the marketplace will depend on clearing hurdles in individual states. Still, the concern is that E15 wasn't thoroughly evaluated before it got EPA approval. "The availability of biofuels for blending in gasoline is a good thing because of its favorable octane, and the industry supports a realistic and workable Renewable Fuels Standard. In fact, more than 90 percent of all gasoline sold in the country has a 10 percent blend of ethanol. But EPA has not done its homework before introducing E15 to America. The Agency's enthusiasm for E15 has clouded its judgment and led to approval of a fuel before adequate study has been done." Compatibility issues loom large, Greco said. "Even with vehicles the EPA says are compatible, automakers disagree," he said. Last summer U.S. Rep. James Sensenbrenner of Wisconsin forwarded letters from car companies to EPA Administrator Lisa Jackson that outline their E15 concerns. A sampling: Ford: "Ford does not support the introduction of E15 into the marketplace for the legacy fleet. ... Fuel not approved in the owner's manual is considered misfueling and any damage resulting from misfueling is not covered by the warranty." Chrysler: "We are not confident that our vehicles will not be damaged from the use of E15. ... The warranty information provided to our customers specifically notes that use of the blends beyond E10 will void the warranty." Honda: "Vehicle engines were not designed or built to accommodate the higher concentrations of ethanol. ... There appears to be the potential for engine failure." Ultimately, Greco said, consumers might become confused and ultimately could bear higher costs: "Without a market for the higher ethanol blends, Congress' biofuels mandate could result in higher compliance costs or production constraints that could place upward pressure on gasoline prices for consumers." One questioner asked whether NASCAR's use of higher-ethanol fuel suggests E15 concerns are overstated. "I don't know about you," Greco said, "but I don't drive a race car."

---

Refiners worry lack of E15 stations will cause RFS non-compliance

By Kris Bevill | May 04, 2012

http://www.ethanolproducer.com/authors/view/Kris_Bevill

As the ethanol industry prepares for the first gallons of E15 to enter the market for 2001 and newer vehicles, the American Petroleum Institute continues to stress the potential for compatibility issues with retail station infrastructure as it relates to the storage and sale of E15. During a May 3 conference call with reporters, Bob Greco, API downstream director, noted that API's analysis of compatibility research conducted by government agencies concluded that about half of the existing equipment at the nation's approximately 157,000 retail stations is not currently compatible with the fuel. Few stations may be willing to invest in the infrastructure modifications necessary to sell E15, inhibiting the fuel's entry into the marketplace, he said. API has legally challenged every step of the U.S. EPA's approval of E15, claiming that more scientific research should be completed before it is allowed to be used in anything other than flex-fuel infrastructure and vehicles. But the group also admits that without widespread use of ethanol blends greater than E10, refiners may be unable to meet increasing renewable fuel standard (RFS) volume requirements, which will subject them to fines of up to $37,500 per day per violation. Therefore, API supports proposed legislation that would relieve regulatory requirements for retailers seeking to offer E15 using existing infrastructure. The Domestic Fuels Protection Act of 2012 would allow the EPA to streamline its approval process to approve underground storage tanks and fuel dispensers for use with a number of fuels, including E15. Additionally, it would exempt retailers from liability in the case of consumer misfueling so long as the station complied with the EPA's misfueling mitigation requirements. It would also prevent the retailer from being held responsible if consumer use of E15 voids the vehicle's warranty. The bill was the subject of a recent House Energy and Commerce subcommittee hearing, during which representatives from the American Fuel & Petrochemical Manufacturers and the Renewable Fuels Association testified in favor of the legislation. During the hearing, however, AFPM President Charles Drevna also made it clear that his group only supports the legislation as a means to assist the petroleum industry in meeting RFS requirements, stating that the AFPM will support the bill "as long as the RFS remains the law of the land." Greco noted during the call with reporters that API believes the RFS is becoming increasingly "unworkable" and said API believes E15 implementation will only provide short-term relief to the RFS volume constraints facing blenders. Because there is no mandate requiring the sale of E15, it remains to be determined how quickly retailers across the nation will move to sell E15 once infrastructure compatibility issues are resolved. However, in some Midwest states, retail stations that have installed blender pumps are expected to begin offering E15 to customers driving 2001 and newer vehicles any day. Blender pumps are approved for use with any ethanol blend up to E85 and so are not constrained by the same compatibility issues facing owners of conventional retail dispensers. Consumer demand will likely ultimately dictate E15's rate of expansion and the RFA noted that a recent poll found that the majority of Americans would use more ethanol if it were available. And because wholesale ethanol prices are currently about $1 less per gallon than gasoline E15 can be sold at a discount to lesser ethanol blends, making it even more attractive to consumers, the group said. The USDA has been an outspoken supporter of increasing consumer access to renewable fuels through blender pumps and announced a goal in 2010 to assist with the installation of 10,000 blender pumps over the course of five years. The federal government has provided grant and loan programs to partially fund blender pump installations, but the expansion of blender pump locations has been most brisk in states offering additional financial support to assist in covering the hefty installation costs. Overall, however, widespread adoption of the pumps has been relatively slow. Ethanol industry group Growth Energy currently lists 305 blender pump locations nationwide, the vast majority of which are located in the Midwest. In a press release issued May 3, Secretary of Agriculture Tom Vilsack noted the government's efforts to enable widespread use of E15 through blender pumps and urged the petroleum industry to assist in implementing E15 as part of President Barack Obama's "all-of-the-above" energy strategy. He also noted the correlation between E15 availability and the ability for refiners to meet RFS mandates and expressed support for the policy's end goal, which will require 36 billion gallons of renewable fuel to be blended into the nation's fuel supply in 2022. "When we get to 36 billion gallons, that's going to mean that we will be importing fewer barrels of oil," Vilsack said in a statement. "That means that the wealth that we are currently transferring into those countries that don't necessarily agree with us and are from an unstable part of the world can be redirected into creating rural opportunities and jobs."

---

What Obama's policies are doing to the American oil industry-The Closure Of The U.S. Oil Refinery Industry In The Past 2 Years

By Kris Bevill | May 04, 2012

http://www.ethanolproducer.com/authors/view/Kris_Bevill

In 2010, there were 149 operable U.S. refineries with a combined capacity of 17.6 million barrels (2,800,000 m3) per day. Something odd started happening in late 2010-early 2011. The US oil refinery industry quietly announced the closure of numerous US oil refineries. Many are completely unaware the US ships oil overseas to be processed. We do so as we do not have enough refineries to process the vast amounts here, and we are barred from building anymore refineries. All refineries perform three basic steps: separation, conversion, and treatment. Pretty simple. Several reasons include technical and economic factors as to why we ship it overseas to be processed.

1. The crude petroleum is sold to the highest bidder, NOT the nearest bidder

2. There are different kinds of crude oil, such as sweet/light and dark/heavy. They have different applications and uses.

3. Different kinds of refining processes are needed to make different products from the crude oil. Petroleum is processed to make lots of products other than gasoline, like plastics and asphalt.

4. Politics, unions and the "environmentalists"

How many of you are aware Sunoco, ConocoPhillips and The HESS Corp are all closing US oil refineries? Not many, as the media refuses to give this HUGE story coverage. My guess is that if Americans understood the complete truth to how we are being sold out, and enslaved there just might be the much needed revolution to turn this country around.

Last September, both Sunoco & ConocoPhillips announced plant closing, effecting thousands of workers. Sunoco announced they are completely getting out of the oil industry. Closing up shop. They are done with the US oil industry. Sunoco is closing it's 2 oil refineries in July 2012 in Philadelphia and Marcus Hook, Pa. Those 2 facilities alone process over 500,000 barrels a day.

http://abclocal.go.com/wpvi/story?section=news/local&id=8343372

Also announced last year, ConocoPhillips announced 2 plant closing for sure in Trainer, PA and Bayway, NJ., the other 3 plants are undecided as of today.

http://stillwaterassociates.com/index.php?option=com_content&view=article&id=139:us-east-coast-refinery-for-sale-whos-buying&catid=40:white-papers&Itemid=155

Conoco also announced they were closing their Alaskan refining facility:

http://www.delcotimes.com/articles/2011/09/28/news/doc4e828f2ba723a246763254.txt ;

Valero also announced in late 2011 the closure of US oil refining facilities, costing numerous jobs, and the loss of 210,000 barrels of oil per day:

http://www.usatoday.com/money/industries/energy/2009-11-20-valero-closing_N.htm

Just a week ago, the US 3rd largest oil refinery owned and operated by The HESS Corp just announced it's permanent closure. Costing over 2,000 jobs, and effecting 950 contractors:

http://www.tucsonnewsnow.com/story/16543753/major-oil-refinery-to-close-in-us-virgin-islands

Refineries on the East Coast of the US supply 40% of the gasoline sales and 60% of the diesel and other fuel oils. Of that, HALF that comes from the Sunoco and ConocoPhillps plant closures. When ConocoPhillips announced that it was closing the Trainer refinery, Willie Chiang, then ConocoPhillips' Senior Vice President of Refining, Marketing, Transportation and Commercial, noted that their decision to sell, like Sunoco's, was based on unfavorable economics caused by a competitive and difficult market environment characterized by "...product imports, weakness in motor fuel demand, and costly regulatory requirements."

They are ALL closing up shop due to government regulations, union demands and excessive operating costs brought on by the Gov regulations. Then you have the unions, led by Barry's buddy Leo Gerard saying they will close ALL US oil refineries starting from the east coast to west coast today.

http://www.reuters.com/article/2011/09/23/usa-oil-refinery-labor-idUSS1E78M0T620110923

The unions are shutting down ports, rail and air across the pond right now......the SAME EXACT thing they plan on doing here. When the ships stop importing, the rails & air stop delivering....how much is everything you consume gonna cost? Remember...we are a CONSUMING country, no longer a producing one.

http://www.hellenicshippingnews.com/News.aspx?ElementId=37873cee-2b75-4aa0-86ac-5336e56a4c04

The excessive and costly government regulations on the US oil refinery market has forced companies to re-evaluate the cost of doing business in the US. Why have operations in the US where you bleed money via regulations and demands, when you can have refineries built in Columbia, Mexico or Brazil for pennies on the dollar, and less regulations? It's all business America...nothing personal. Besides.....your government is giving BILLIONS to Columbia and Brazil to build refineries to process all that oil the US is losing.

We are building up every country on earth, while destroying our own....all in the name of redistribution of wealth. I covered some of these "deals" Barry inked in my previous note:

https://www.facebook.com/profile.php?id=100003192895784&sk=notes#!/note.php?note_id=145148522268243

You do the math. When the US oil refineries finally close up shop, who will process all that oil....and how much do YOU think that oil will cost when it's ALL processed over seas?

Think gas and energy costs are high right now.......wait 6 months. You haven't seen anything yet. How can anyone expect any company to do business with an anti-American, hostile government out of control? You can't. That is why we are seeing a mass exodus, across the board in every industry in the US LEAVING.

---

NH House: Ban ethanol in gasoline

Associated Press | March 8, 2012

http://www.salemnews.com/region/x579807975/NH-House-Ban-ethanol-in-gasoline

CONCORD, N.H. — New Hampshire's House has voted to ban corn-based ethanol as a gasoline additive. The ban would not take effect unless at least two other New England states do the same. A similar proposal has not been approved in the rest of the region. (Click link above to read entire article)

---

Retailers want liability protection before considering E15

By Kris Bevill | February 22, 2012

http://ethanolproducer.com/articles/8594/retailers-want-liability-protection-before-considering-e15

It should be noted that despite the EPA's approval of E-15 for 2001 and newer cars and light trucks, most vehicle OWNERS MANUALS of 2001 and newer vehicles caution owners "not to use gasoline containing greater than 10% ethanol, and if used, any engine damages will NOT be covered by the vehicle's warranty". Be sure to check your vehicle's owners manual before using 15% ethanol gasoline. (comments by "Pete" Landry)

---

E15: CRACKING THE RVP NUT

By Jeremy P. Greenhouse | October 18, 2011

http://ethanolproducer.com/articles/8222/e15-cracking-the-rvp-nut

When the U.S. EPA granted Clean Air Act fuel waivers allowing gasoline containing 10 to 15 percent by volume of ethanol (E15) for use in model year 2001 and newer light-duty motor vehicles, the agency included the following condition, as published in the Jan. 26, Federal Register: "The final fuel must have a Reid Vapor Pressure not in excess of 9.0 psi [pounds per square inch] during the time period from May 1 to September 15." (Read entire article at link above)

NOTE: Unless the EPA grants a waiver on the Reid Vapor Pressure, this could be a "HUGE" obstacle to getting the newly approved 15% ethanol in the market. "Pete" Landry

---

Fixing A Broken Biofuel Incentive Program

By Robert Rapier, Forbes

http://www.forbes.com/sites/energysource/2011/09/04/fixing-a-broken-biofuel-incentive-program/

The Renewable Fuel Standard (RFS) program, created under the Energy Policy Act of 2005, mandated that increasing volumes of ethanol be blended into the nation’s gasoline supplies. The 2007 Energy Independence and Security Actaccelerated and expanded the original mandates with the RFS2. The RFS2 also mandated the use of advanced biofuels: 100 million gallons of cellulosic ethanol in 2010, 250 million gallons in 2011, 500 million gallons in 2012 and (read the full article at the above link)

---

Ford, GM, Toyota Criticize U.S. Regulator’s Ethanol-Blend Fuel Proposal

By Angela Greiling Keane - Jul 5, 2011 2:55 PM CT

http://www.bloomberg.com/news/2011-07-05/ford-gm-toyota-criticize-u-s-regulator-s-ethanol-blend-fuel-proposal.html?cmpid=yhoo

Automakers including Chrysler Group LLC, Ford Motor Co. (F) andToyota Motor Corp. (7203) criticized an Environmental Protection Agency proposal to allow gasoline containing up to 15 percent ethanol in all cars and trucks in the U.S., saying its use may void warranties. Twelve automakers in letters released today that were sent to Representative James Sensenbrenner, a Wisconsin Republican, said the EPA proposal to sell so-called E15 fuel may damage engines and fuel-supply systems in vehicles made to run on gasoline with lower ethanol content. The EPA last week announced an orange and black label to be used at pumps selling blends containing 15 percent ethanol. (Read the entire article at the link above)

---

EPA approves E15 fuel label despite engine risk

By James R. Healey, USA TODAY

http://content.usatoday.com/communities/driveon/post/2011/06/e15-e10-ethanol-alcohol-pollution-engine-damage-labels-gas-station-pump-epa/1

The Environmental Protection Agency previously approved E15 -- 85% gasoline and 15% ethanol -- for use in vehicles back to 2001 models. The approved label is part of the EPA's final rule spelling out about how E15 can be sold and what standards it must meet. E15 isn't available yet. EPA says sellers have to first register their blends with the agency to be sure they meet a number of standards. Probably nothing at stations until late this year, ethanol interests say. (Read entire article at above link)

---

U.S. Senate Votes to Shut Down Tax Break, Tariff for Ethanol

By Richard Rubin and Steven Sloan - Jun 16, 2011 4:19 PM CT

From Bloomberg Business News Read full article here:

http://www.bloomberg.com/news/2011-06-16/senate-votes-to-end-tax-break-for-ethanol.html

The U.S. Senate voted to eliminate a tax credit and a tariff that subsidize ethanol production, providing the strongest signal yet that Congress will curtail subsidies for corn-based biofuel. The 73-27 vote exceeded the 60-vote threshold needed to advance the measure as part of an economic development bill. The underlying legislation isn’t likely to become law, so the vote mostly indicated that it will be difficult for ethanol supporters to extend the 45-cent-a-gallon tax break and the 54- cent-a-gallon tariff beyond their scheduled Dec. 31 expiration. (Click on above link to read full article)

---

US program seeks to increase use of E-85 fuel

By MICHAEL J. CRUMB

THE ASSOCIATED PRESS April 8, 2011, 2:15PM ET, MORE FROM BUSINESSWEEK

NOTE: WHAT THIS ARTICLE DOES NOT TELL YOU IS THE FUEL MILEAGE REDUCTION ON E-85 IS A WHOPPING 30-40%

(ONLY VEHICLES WITH THE “FLEX” DESIGNATION CAN OPERATE ON E-85 FUEL)

http://www.businessweek.com/ap/financialnews/archives/May2011/D9MFL18O2.htm

DES MOINES, IOWA

The federal government wants to increase production and use of a higher blend of ethanol fuel by giving financial assistance to gas stations that install more pumps for the fuel, U.S. Agriculture Secretary Tom Vilsack announced Friday. Vilsack said President Barack Obama wants the U.S. Department of Agriculture to help ensure 10,000 flex-fuel pumps for E-85 are available across the country within the next five years………….

(click on the link above to read full article)

---

A rush to judgment: E15 and the unintended consequences of federal energy mandates

October 15, 2010 | Posted by Ken Cohen

You might have heard that the EPA has decided to authorize the use of gasoline with a 15 percent blend of ethanol (E15)‚ beyond the current 10 percent blend (E10), in vehicles built since 2007. In doing so, I think the government is actually demonstrating some real problems with the federal Renewable Fuel Standard (RFS) – problems that could hurt consumers, the auto industry and other businesses alike. The RFS was originally created by the Energy Policy Act of 2005 and required 7.5 billion gallons of renewable fuel to be blended into gasoline by 2012‚ a target later extended to 36 billion gallons by 2022 under the Energy Independence and Security Act of 2007 (or RFS 2). At the time, many policymakers promised that an increased use of corn-based ethanol would result in reduced greenhouse gas emissions and cuts in oil imports. Through this federal intervention, policymakers attempted to manufacture a minimum "market" for ethanol. But the numbers are a problem. Thirty-six billion gallons per year, if achieved by blending ethanol into gasoline, would amount to 20 to 25 percent ethanol in gasoline. The vast majority of vehicles in use today – as well as marine and small engines — are not guaranteed to operate safely on ethanol blends higher than E10. Only about 3 percent of today’s vehicles are flex-fuel vehicles that can accommodate greater amounts of ethanol, and that percentage will grow slowly as new flex-fuel vehicles are introduced. Further, many flex-fuel vehicle owners prefer to use gasoline, which provides better fuel economy than high-level ethanol blends. And it’s worth mentioning that ethanol is almost always more expensive on an energy-adjusted basis than gasoline. The recent economic decline exacerbates this problem. Fewer new vehicles are being sold, and demand for gasoline has dropped‚ yet the annual volumes of renewable fuels mandated by RFS remain fixed. EPA E15 waiver attempts to address this problem. But introducing any new transportation fuel, such as E15, is a complicated process. Most engines have not been tested for E15, and it's possible that vehicle warranties could be voided if vehicles suffer damage from higher ethanol blends. Additionally, most service stations do not have tanks and pumps that are certified for dispensing the higher ethanol blends – and the time required and costs of installing new equipment are significant.

A diverse coalition of stakeholders opposes a rushed E15 waiver for a variety of reasons:

· Environmental organizations, such as the Natural Resources Defense Council and Environmental Working Group, are concerned with land-use issues that could lead to increased greenhouse gases from corn ethanol production as well as with increased water and pesticide use.

· Food producers are concerned that using more corn for fuel could increase the cost of feeding livestock and poultry, thus increasing the overall costs for food production.

· The automobile industry, marine manufacturers, small engine manufacturers, and consumer groups are concerned that E15 blends could damage engines and exhaust systems because, as I mentioned, very few engines (with the exception of flex-fuel vehicles) are designed to run on fuels with an ethanol content higher than E10.

· Retailers are concerned about confusion at the gas pump and potential for similar liability claims should drivers fill up their vehicles with the wrong fuel blend. Or, consumers could inadvertently use E15 blends for small engines such as lawnmowers or other machinery, which could cause damage.

Lawmakers from both political parties are also concerned. Leaders of the U.S. House Energy and Commerce Committee wrote to EPA Administrator Lisa Jackson in July, stating some in Congress believe that renewable fuels can play a role in improving our energy security. However, these fuels can only play this role if they are introduced in a manner that adequately protects consumers. They must be integrated into the fuel system in a way that does not damage people’s cars, trucks, lawn mowers, boats, or other non-road equipment. … While E15 may work well in some types of vehicles, preliminary information raises significant questions about whether, in other types of vehicles or engines, E15 may cause durability or operability problems, or increased air pollution.” Beyond the specific E15 issue, many observers have questioned government support of ethanol in general. They have seen that the federal government has provided substantial subsidies for ethanol fuel for more than 20 years, yet economic studies have concluded that the ethanol market could collapse without federal subsidies. Why? Observers and economists point to the fact that there are virtually no economies of scale associated with ethanol processing; production costs have not declined significantly over time; and ethanol production is a very mature technology. Robert Bryce, senior fellow at the Manhattan Institute, summed up the situation in the Washington Examiner: "Why does the ethanol industry need a bailout? Amazing as it may sound, because it was given too much in the way of subsidies and mandates."

What do you think?

---

The Most Wasteful Ethanol Subsidy

May 10, 2011

By Robert Rapier, FORBES

With the 45 cent per gallon ethanol subsidy and the tariffs on imported ethanol both set to expire at the end of December, ethanol proponents and ethanol opponents have ramped up the rhetoric. The purpose of this essay is not to argue over the pros and cons of the role ethanol plays in the U.S. energy mix. But I am going to argue that in either case, extending the VEETC in its current form is fiscally irresponsible. read the entire article by clicking on the link below)

http://blogs.forbes.com/energysource/2010/11/29/the-most-wasteful-ethanol-subsidy/

---

Auto lobbyists want less ethanol allowed in gasoline

March 25, 2011

By James R. Healey, USA Today

Automakers and power-equipment companies say the higher concentration of ethanol -- usually made from corn -- can damage engines over time and that government tests showing otherwise weren't thorough. Some environmentalists also object to diverting grains from the food chain for use as fuel. The Association of Global Automakers asked the U.S. Environmental Protection Agency this week for a rule that would prevent the phase-out of E10 in favor of the now-approved E15. Why? (click on the link below to read the entire article)
http://content.usatoday.com/communities/driveon/post/2011/03/auto-lobbyists-want-feds-to-require-e10-fuel-even-though-e15-now-is-legal/1

---

Rising Corn Acreage Failing to Meet U.S. Feed, Ethanol Use

March 29, 2011, 5:18 AM EDT

MORE FROM BUSINESSWEEK

By Jeff Wilson

http://www.businessweek.com/news/2011-03-29/rising-corn-acreage-failing-to-meet-u-s-feed-ethanol-use.html

March 29 (Bloomberg) -- U.S. corn planting will expand to cover the second-largest area since World War II this year and still fail to meet demand for feed and ethanol, driving corn prices to their highest in at least 34 years. Sowing will expand by 4 percent to about 91.75 million acres, the most since 2007 and the second-highest since 1944, according to a Bloomberg survey of 32 analysts. Corn will rise 5.7 percent to average $7.15 a bushel in the third quarter, the most since at least 1977, Abah Ofon and Koun-Ken Lee, analysts at Standard Chartered Bank in Singapore, wrote in a report…..(click on the link above to read full article)

---

Tyson Chairman: Ethanol Driving Up US Food Costs (DJ)

Source: Dow Jones Newswires
(dated 11/03/2011)

March 11 - U.S. support for ethanol is driving up food costs and increasing the risk of hunger, Tyson Foods Inc.'s (TSN) chairman said Thursday, as the company released a survey showing a quarter of all Americans worry about not having enough food to eat in the next year.

(click on article title above to read full article)

---