News from Ethanol.org http://www.ethanol.org http://www.ethanol.org/news/?newsid=3 Mar 27, 2007
"Having 100 percent ethanol power the IndyCar Series is one of the most compelling ways to demonstrate ethanol's superior performance characteristics," said Brian Jennings, Executive Vice President of the American Coalition for Ethanol. "Ethanol is the entire package - homegrown, renewable, clean burning, and full of high-octane power."

Ethanol is a high-performance, 113 octane fuel that is made from corn and other renewable resources. In addition to its performance characteristics, ethanol burns more cleanly than gasoline and reduces harmful tailpipe emissions. Its production adds value to American agriculture and reduces the nation's dependence on oil.

The league began the transition from methanol to ethanol during the '06 IndyCar season with a 90% methanol, 10% ethanol fuel blend. This year 100% ethanol is Indy's fuel of choice, including for the world-famous Indy 500. The IndyCar Series season begins Saturday, March 24 at Homestead-Miami Speedway in Florida. The race will be televised at 8 p.m. Eastern Time on ESPN2. The full race schedule is available at www.indycar.com.

America's ethanol industry supports Team Ethanol, the No. 17 IndyCar driven by Jeff Simmons for Rahal Letterman Racing. Team Ethanol began through a relationship between the leaders of three top ethanol design-build firms - Broin Companies, Fagen Inc., and ICM Inc. - and Paul Dana, the team's first driver who led ethanol up the IRL ranks and had the vision to pursue the fuel switch.

"The entire ethanol movement benefits from being the new fuel of the IndyCar Series," said Ron Lamberty, ACE Vice President / Market Development. "Ethanol has been undergoing a transformation over the last few years - from a fuel of regional interest to one with national implications, from unknown to mainstream, from a fuel blend component to a fuel of its own merit. Being the fuel to power Indy is accelerating this transformation in the eyes of America."

Read more about the fuel switch and the history leading up to it in the April issue of Ethanol Today, ACE's official magazine.

The American Coalition for Ethanol (ACE) is the nation's largest ethanol association with more than 1600 members nationwide, including ethanol producers, agriculture organizations, businesses that supply goods and services to the industry, investors, and farmers.

The U.S. is home to nearly 120 ethanol production facilities which will produce approximately 6 billion gallons of renewable fuel this year. Ethanol is now blended into 46 percent of America's gasoline, most as the E10 blend (10% ethanol, 90% gasoline) that is approved for use in all automobiles. E85 (85% ethanol, 15% gasoline), available to a smaller, but increasing degree, is for use in Flexible Fuel Vehicles.
]]> http://www.ethanol.org/news/?newsid=2 Mar 15, 2007
"The American Coalition for Ethanol is very grateful to Senators Dorgan and Craig for their bipartisan leadership to promote the further growth of the U.S. ethanol industry by including provisions supported by ACE in the SAFE Energy Act," said Brian Jennings, Executive Vice President of ACE, the nation's largest ethanol association with more than 1600 members across the country.

Though the ACE board has not yet taken an official position on the legislation, ACE worked closely with Senators Dorgan and Craig on the key biofuels provisions in the bill, which are consistent with ACE policy:

- Increasing the Renewable Fuels Standard (RFS) to 30 billion gallons per year by 2020, including a call for 15 billion gallons per year to come from cellulosic sources.
- Increasing the tax credit for E85 infrastructure from 30% to 35%.
- Increase the number of Flexible Fuel Vehicles on America's roads by 10% annually.
- Creating a new investment tax credit for blender pumps valued at 40%.

"ACE is particularly pleased with the inclusion of a new and meaningful tax credit for the purchase and installation of blender pumps which can dispense blends of ethanol beyond 10 percent," Jennings said. "The ACE board of directors recently voted to support infrastructure for higher ethanol blends by working with Congress to provide incentives to petroleum marketers to purchase and install blender pumps, and the Dorgan-Craig legislation is a product of that effort."

ACE believes it is critically important to act now to ensure the refueling infrastructure is in place ti dispense the higher blends of ethanol that will be used in the future.

"These incentives, if enacted, would be today's infrastructure investment in the biofuels of tomorrow. We applaud Senators Dorgan and Craig for this visionary step and for their leadership on this issue," he added.

In addition, ACE believes that increasing the RFS is critically important to creating a sustainable market for both corn-based and cellulosic ethanol. Such a move would send a signal to corn farmers, lenders, investors, and dry-mill and cellulosic ethanol producers that the U.S. is committed to making biofuels a centerpiece of the nation's energy strategy for the long-term.

"As the only national ethanol organization embracing and pushing for an RFS increase, ACE values the strong momentum building in Congress in support of this critical policy step. A long-term commitment to a strong, meaningful RFS is critically important to the health and success of the U.S. ethanol industry," Jennings said.

For more information about ethanol, visit www.ethanol.org.]]> http://www.ethanol.org/news/?newsid=4 Mar 26, 2007
ACE has created these talking points to help grassroots ethanol advocates better understand and communicate the truths of food and fuel.

Not an either-or scenario
- The so-called "food vs. fuel" wrongly asserts that a choice must be made between corn for food and corn for ethanol; in reality, the U.S. corn supply is ample enough to satisfy the needs of food, fuel, and feed markets.
- There are limits on how much corn can and should be used for ethanol, but the marketplace is best equipped to make the determination.

Misunderstanding corn for human consumption
- Many don't realize that corn for ethanol and corn for human consumption are two different types. Field corn, the type used to feed livestock, goes into ethanol production. Sweet corn, a very small portion of the U.S. crop, is the type eaten by humans.
- Critics routinely overstate how much corn is consumed as human food; in reality, less than 10 percent of the U.S. corn crop is annually used for human food in the form of sweeteners, cereals, etc.
- Corn's customers, in order, historically have been: the livestock sector, export markets, processors (including ethanol), and lastly, humans.
- Those spinning the "food vs. fuel" debate suggest that U.S. corn exports go directly to feed the malnourished in developing countries and that ethanol directly removes food from those in need. In reality, the majority of corn exports from the U.S. are used to feed livestock in developed countries.
- There is more food per capita today on a global scale than ever before, according to the United Nations Food and Agriculture Organization. Lack of infrastructure, access to capital, political instability, and other issues are the more likely causes of hunger than scarcity of food.

Increasing yields and acreage
- Farmers base planting decisions upon market signals. High demand and strong prices for corn will lead to increased corn acreage, providing larger supplies for food, feed, and fuel.
- The livestock sector's demand for corn has been relatively flat over the last decade, as has the corn used for non-ethanol industrial processing. Corn exports have trended up only slightly. Because these other demand categories shows signs of only limited future growth, it is expected that the additional corn supply from higher yields and more acres will be available for biofuels production.
- Continual technology innovations allow ethanol producers to squeeze more ethanol out of each bushel of corn. Ten years ago, a bushel of corn delivered 2 gallons of ethanol; today that same bushel yields nearly 3 gallons of ethanol.

The role of distillers grain
- The important role of distillers grain is often overlooked. Dry-mill ethanol production uses only the corn's starch, leaving the protein, fats, and fiber left as distillers grain, a valuable feed product for livestock markets.
- Ethanol production does not remove protein from the food supply because this protein, highly valued in world food and feed markets, is passed through in the form of distillers grain.

Expanding into cellulosic feedstocks
- The ethanol industry recognizes that corn has multiple important uses and that the industry must seek alternative feedstocks as it expands.
- Cellulosic ethanol can be made from feedstocks that do not have direct use as food, such as corn stalks, grain straw, switchgrass, wood chips, etc.
- These cellulosic feedstocks will be a game-changing transformation that will make our nation more energy secure and will ensure harmony among corn's customers.
]]> http://www.ethanol.org/news/?newsid=5 Mar 25, 2007
ACE's website, www.ethanol.org, features an online Legislative Action Center that makes taking grassroots action for ethanol only a mouse-click away.

Access the center at http://capwiz.com/ethanol/home/ or through the "Take Action" menu heading on ACE's site. With a minimum of time and effort, this tool allows grassroots ethanol advocates to view important legislation being considered by Congress and to take action by sending messages to their Representative and Senators.

What information can I access?
Once inside the center, four main menu headings are featured: Elected Officials, Issues & Legislation, Elections & Candidates, and Guide to the Media.

Elected Officials - enter your zip code and access data, including biographical and contact information, about your elected officials.

Issues & Legislation - view ethanol-related legislation currently being discussed by Congress and to view the results of key votes that have been taken on ethanol-related bills.

Elections & Candidates - view candidates and election results in your home state and across the nation.

Guide to the Media - enter your zip code to find contact information for media in your area so you can send a letter to the editor, etc.

The "Current Legislation" section within Issues & Legislation is updated by ACE staff with the latest ethanol-related bills in Congress. For each bill, you can view a summary of the legislation, ACE's position on the issue, and a list of sponsors and co-sponsors.

How do I take action?
The Action Alert feature is the quickest way to see what ethanol-related bills are the most important and to take action by contacting Congress with your message of ethanol support. The Action Alert is found on ACE's main Capwiz page in the blue box near the top of the page.

To take action, follow these steps:
1. Visit ACE's Legislative Action Center
2. Click on one of the bills inside the Action Alert box.
3. Enter your zip code so the system can identify your Representatives and Senators.
4. Compose your message using the suggested language or editing it to include your own words.
5. Fill our your contact information and hit "send".
6. If you'd like, select "Sign me up for the Action E-List" to receive notices when new issues arise.
7. Use the "Tell a Friend" feature to forward the link to other ethanol supporters so they can take action, too.

Helpful hints:

Your message can be sent either via e-mail or by printed letter, e-mail being the default method.

The messages are sometimes split by sponsorship status so that sponsors receive a "thank you" message and non-sponsors receive a message urging them to support the bill.

If you are comfortable doing so, it is a good idea to personalize the message with your own words so that the messages received in the Capitol Hill offices are not exactly identical.
After your message is sent, you will receive a confirmation e-mail.

Using the new Legislative Action Center to contact Congress is a quick, easy way for grassroots ethanol supporters to take action. ACE's voice in support of ethanol is strong, but it is exponentially stronger when its grassroots members are actively involved. If you have any questions about using this feature, contact Outreach Coordinator Lacey Horkey at lrhorkey@ethanol.org or Communications Director Kristin Brekke at kbrekke@ethanol.org. Thank you!
]]> http://www.ethanol.org/news/?newsid=6 Apr 04, 2007
Sioux Falls, SD (April 4, 2007) - The American Coalition for Ethanol, the nation's largest ethanol association, was pleased to offer testimony for today's field hearing of the U.S. Senate Agriculture Committee's Subcommittee on Energy, Science, and Technology. The event was held on the campus of South Dakota State University in Brookings, hosted by Senator John Thune (R-SD), the subcommittee's ranking member.

The event, "The Next Generation of Biofuels: Cellulosic Ethanol and the 2007 Farm Bill," was a forum for discussing how the 2007 Farm Bill can play a role in directing the development of the biofuels industry, especially the commercialization of cellulosic ethanol.

"Given the likelihood that the next Farm Bill will contain a meaningful energy title designed to promote biofuels and renewable energy, ACE is grateful for the opportunity to submit testimony at this field hearing on behalf of the U.S. ethanol industry," said Brian Jennings, ACE Executive Vice President. "We are also pleased that the hearing featured the expertise of two ACE member ethanol companies helping develop the technology breakthroughs necessary to commercialize cellulosic ethanol - Poet Energy and VeraSun Energy."

Don Endres, Chairman and CEO of VeraSun Energy Corporation, and Jeff Fox, Vice President Legal and Governmental Affairs for Poet Energy (formerly Broin Companies), both testified at today's field hearing.

In its testimony, ACE outlined the terrific potential that cellulosic ethanol holds, but also the four overriding challenges to making cellulosic ethanol a commercial-scale reality: the cost and complexity of converting biomass feedstocks into ethanol; the capital costs of financing and constructing cellulosic biorefineries; feedstock challenges including how and where to grow the feedstocks and how to harvest, collect, transport, and store biomass; sustainability challenges, including respecting soil quality, wildlife habitat, and land conservation practices.

ACE pointed to the limitations of the "blend market" and the limitations of how much corn can be used for ethanol as reinforcements of the need for cellulosic ethanol to become a reality in the near future.

"There is an intersection between what we refer to as the 'blend market,' where E10 comprises virtually every gallon of motor fuel in the U.S., and the upward limitations of how much corn we can distill into fuel ethanol, reinforcing the need to make cellulosic ethanol a reality if we are to achieve a more meaningful reduction in fossil fuel use."

In the testimony, encouraged Congress to consider the following public policy framework to help create certainty for cellulosic and corn-based ethanol:

expand the RFS to reach 10 billion gallons of biofuels per year by 2010, 30 billion gallons by 2020, 60 billion gallons by 2030;

promote the use of higher blends of ethanol is the existing fleet of automobiles

increase funding for and consolidating federal cellulosic biofuels loan guarantee programs into a single program at USDA;

establish a pilot cellulosic biofuels feedstock program;

require automakers to ensure that all vehicles in the U.S. are flexible fuel and require installation of E85 and/or blender pump at all gas stations affiliated with major oil companies;

establish a cost-share program under Title IX of the Farm Bill to provide assistance to ethanol plants for the installation of low-carbon processing and conversion technologies;

extend the Blender's Credit for ethanol beyond 2010 and

retain the existing secondary import tariff offset on imported ethanol.

Read ACE's full testimony here.]]> http://www.ethanol.org/news/?newsid=7 Apr 12, 2007
Sioux Falls, SD (April 11, 2007)- Yesterday, U.S. Environmental Protection Agency Administrator Stephen Johnson signed the final rule on the Renewable Fuels Standard, passed as part of the Energy Policy Act of 2005. The RFS is the first federal legislation requiring an increased consumption of renewable fuels each year across the nation.

The American Coalition for Ethanol (ACE), the nation's largest ethanol association with more than 1600 grassroots members, today issued this statement on the final RFS rule. Brian Jennings, Executive Vice President, stated:

"The Renewable Fuels Standard is an historic program to support ethanol production and use, and we applaud the EPA for its diligent and professional work during this rulemaking process. ACE is pleased that the RFS is now finalized and the ethanol industry can begin setting this important national standard into motion.

According to the EPA analysis of the RFS program, U.S. net farm income could increase by more than $5 billion, restoring prosperity to rural communities. Furthermore, reinforcing ethanol's clean air qualities, emissions of CO2 greenhouse gases, carbon monoxide, and benzene will be reduced as a result of an increase in ethanol use.

While we have not been able to sift through the entire rule, it appears the final regulation closely mirrors the proposed rule, and on balance we are pleased with the outcome. However, the American Coalition for Ethanol does have serious concerns about the legality of and rationale for the 'equivalency values' that EPA invented during the rulemaking process. Congress assigned cellulosic ethanol with a 2.5:1 credit ratio in the law to encourage new and energy efficient ethanol production processes, and ACE strongly supports this credit ratio for cellulosic ethanol. Nevertheless, we are very disappointed EPA has used that as the rationale to take this a step farther by creating 'equivalency values' and assigning other fuels extra credits based upon BTU content. This is sure to undermine ethanol use by creating 'virtual gallons' and paper credits of other fuels which can be used to replace physical gallons of ethanol. This is inconsistent with the law and a bad policy precedent to set.

ACE looks forward to working in conjunction with the EPA to host RFS implementation workshops so that our members can learn about the compliance requirements of the Renewable Fuels Standard."

The agency plans for the final rule to go into effect on September 1, 2007, which will enable stakeholders and obligated parties time to prepare for the registration, record keeping, and reporting requirements of the law.

To view the official EPA documents on the Renewable Fuels Standard, visit www.epa.gov/otaq/renewablefuels/.]]> http://www.ethanol.org/news/?newsid=8 Apr 29, 2007
Sioux Falls, SD (April 18, 2007) - In response to a paper released today by Mark Z. Jacobson of Stanford University and published in the online edition of the journal Environmental Science & Technology, the American Coalition for Ethanol (ACE) issued the following statement:

"Air quality has improved in every city, county, and state that has switched from straight gasoline use to ethanol-blended fuel. Those are real world results, not predictions.

In a way, it is refreshing to see that the anti-ethanol naysayers continue to be relegated to making dire predictions of what 'might happen if' - because it shows they have no negative real-world experience to report. Ethanol's record as a clean air fuel is unmatched. The track record for the predictive models issued by ethanol opponents - especially with respect to California predictions - has been less than stellar.

In order to provide a real-world perspective on ethanol use and the environment, ACE offers members of the media and public to review 'Clearing the Air with Ethanol: A Review of the Real World Impact from Fuels Blended with Ethanol'. Published in March 2006 by Better Environmental Solutions and the Renewable Energy Action Project, this analysis shows that ethanol use reduced carbon monoxide and particulate matter emissions by at least one-third.

If the media is interested in writing a fair and balanced article on the environmental and health effects of ethanol, we strongly urge them to read and cite the findings of this report."

The Clearing the Air with Ethanol report is available in the Press Release section of the Press Room on www.ethanol.org.]]> http://www.ethanol.org/news/?newsid=9 Jun 18, 2007
The American Coalition for Ethanol (ACE), the nation's largest ethanol advocacy association, is pleased to announce the agenda for its upcoming Ethanol Conference & Trade Show to be held this
summer in Minnesota. The 2007 Ethanol Conference, the organization's 20th annual, will take place August 7-9 at the River Centre in St. Paul, Minnesota.

In anticipation of record attendance for the organization's 20th anniversary event, ethanol industry leaders and key public policy figures including Congressman Collin Peterson (D-MN), Senator John Thune (R-SD), and Minnesota Governor Tim Pawlenty have been invited to discuss the growing role that biofuels are playing in our nation's economic development and energy security strategy.

The conference kicks off Tuesday, August 7 with the annual ACE Scholarship Golf Classic and the grand opening of the trade show. Wednesday morning opens with breakout sessions on maximizing value and use of distillers grain, overcoming obstacles to cellulosic ethanol, managing risk for ethanol producers, service station needs for adding ethanol, training the ethanol workforce and more.

The Wednesday afternoon general session features keynote policy addresses, a Farm Bill forum, a discussion of ethanol's role as a global warming solution, a panel discussion on how and when cellulosic ethanol will be commercialized, and a look at ethanol's role as the fuel of the IndyCar Series.

Thursday, August 9 concludes the conference with these timely topics: distillers grain's growth from by-product to coproduct, a look at how Brazil utilizes E25 blends, a panel exploring technology innovations in ethanol, and other players in alternative fuels.

The conference, which is hosted in a different Midwestern city each year, is expected to be ACE's largest event. Nearly 1600 people attended last year's conference in Kansas City, up from 1000 the previous year, and an even larger record crowd is anticipated this year due to the larger venue and the continually increasing interest in ethanol. A sold-out trade show will provide attendees the opportunity to network with 191 companies filling more than 230 exhibit spaces, ACE's largest show to date.

Early sign-up is strongly encouraged due to the tremendous interest expected in the conference. Conference registration has opened online at www.ethanol.org. Visit the "Conference & Trade Show" menu heading for an easy-to-use online registration form.

Now in its twentieth year, ACE's membership has grown to nearly 2000 ethanol supporters, including ethanol producers, goods and services suppliers, the ag community, rural electric cooperatives, farmers, investors, and other individuals supporting the advancement of ethanol.
]]> http://www.ethanol.org/news/?newsid=10 May 04, 2007 ABC Attempts to Discredit Ethanol in May 4 "20/20" show on "the ethanol myth"

ACE Executive Vice President Brian Jennings said, "I can only surmise that 20/20 desperately needs to gain ratings and attention because the program is resorting to spectacular hyperbole to discredit a renewable fuel that holds real promise for this nation's economy, environment, and energy security. The only myth here is found in ABC's flawed analysis and lazy journalism, which uses only anti-ethanol sources to paint a distorted picture of reality and to stir up controversy where none exists."

"20/20" cites a recent study by a Stanford University proessors who claims that the use of ethanol will actually be worse for the environment than straight gasoline, a claim contrary to years of real-world experience with using ethanol blends.

"It is a proven fact that in every city, county, and state that has switched to ethanol-blended fuel, air quality has improved. One computer modeling program cannot change ethanol's real-world results in reducing carbon monoxide, particulate matter, and ozone pollution," Jennings said.

The program criticizes ethanol "subsidies and mandates," saying these policies are not necessary and only serve to "take money from people who buy corn and to give it to the people who grow corn and who make ethanol."

"In the words of one petroleum industry executive, asking the oil industry to sell ethanol is like asking cattlemen to sell tofu - it's not their product and they'd rather not use it. The transportation fuel supply is a very profitable status quo for the petroluem industry and they have no reason to want change. That's why it is necessary and appropriate for the federal government to step in, breaking this de facto crude oil mandate and outlining an increase in the amount of renewable fuels the U.S. uses each year," Jennings said.

What is referred to as the ethanol "subsidy" does not go to ethanol producers - it is a lower tax rate on ethanol which goes to the petroleum industry as an incentive to blend ethanol into its gasoline. In addition, the small amount of federal money spent on the ethanol incentive is more than returned by ethanol's contribution to the economy and in the savings generated to the federal farm program due to higher crop prices - $3.2 billion in farm program savings in 2004 alone.

Stossel also falls into the trap of concluding that, because ethanol cannot instantly replace all the gasoline the U.S. consumers, it is somehow not worthy as an alternative fuel source.

"The bottom line is that the world's oil supply is finite, expensive, and not very environmentally friendly. What options do we have but to look for better alternatives? Ethanol is here today as the most real, meaningful alternative that America has to combat our dependence on oil. With ethanol's proven benefits for the environment, economy, and energy security, and its great future potential with new feedstocks and technologies to replace a large portion of our gasoline use, there really is no down side here. I guess that's why the real ethanol story doesn't make for very interesting television," Jennings said.

If you would like to contact ABC News and "20/20" to express your opinion about their reporting, here are a couple of ways to share your comments:

"20/20" e-mail address: 2020@abcnews.com
Phone number: (212)456-2020
Fax number for "20/20" and John Stossel: (212)456-0533
Website to post comments about the program: http://abcnews.go.com/2020/story?id=3130684&page=1

With any questions, contact Kristin Brekke at kbrekke@ethanol.org.



]]> http://www.ethanol.org/news/?newsid=11 May 22, 2007
This link, www.epa.gov/otaq/renewablefuels/index.htm#rfs040907, takes you to the U.S. Environmental Protection Agency's main Renewable Fuels Standard information page.

Implementation Workshop presentations by EPA personnel:
(download powerpoints as PDFs)

Program Overview: www.epa.gov/otaq/renewablefuels/rfs-overview.pdf

Registration, Recordkeeping & Reporting: www.epa.gov/otaq/renewablefuels/rfs-requirements.pdf

Compliance & Enforcement Requirements, Product Transfer Documents: www.epa.gov/otaq/renewablefuels/rfs-compliance.pdf

Reporting through EPA's Central Data Exchange: www.epa.gov/otaq/renewablefuels/rfs-cdx.pdf

A Q&A document has also been developed as a guide to the RFS program. "Questions and Answers on the Renewable Fuels Standard" is available at this link: www.epa.gov/otaq/renewablefuels/420f07041.pdf

Contact the American Coalition for Ethanol office with any questions about the RFS program: (605)334-3381.
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