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Legislation introduced in U.S. House to extend the ethanol tax credit

Today Congressmen Earl Pomeroy (D-ND) and John Shimkus (R-IL) introduced HR 4940, the "Renewable Fuels Reinvestment Act," to extend the ethanol tax credit, which is set to expire on December 31, for five years at the current 45-cent-per-gallon level.  The bill would also extend the ethanol Small Producers Tax Credit, the Cellulosic Ethanol Production Tax Credit, and the 54-cent secondary tariff for five years.  The bill currently has 29 co-sponsors.  Our official press comments can be read in this release. 

I was just in Washington, DC earlier this week for the American Coalition for Ethanol's second annual "Biofuels Beltway March."  Almost 30 of ACE's grassroots members from across the Midwest traveled to Capitol Hill to ask Congress to reauthorize VEETC, the Volumetric Ethanol Excise Tax Credit.  We broke into small groups and met with more than 60 Members of Congress or their staff, talking to them about how the ethanol tax credit directly benefits consumers and the hundreds of thousands of jobs all across America that are supported by the ethanol industry.

These grassroots advocates can tell ethanol's story in a way no paid lobbyist can.  I was reminded once again that a success story ethanol has been for rural America as I sat with farmer board members who told Congress about ethanol's benefits to the farm economy and to their small communities which have good new jobs.  I was impressed as I listened to ethanol producers talk about the increasing efficiencies at their plants, leading to lower water and energy usage.  I would like to thank each of these ethanol supporters for taking the time to participate in our DC fly-in.

A recent study found that in 2009, the U.S. ethanol industry supported nearly 400,000 jobs in the U.S. and generated a surplus beyond the cost of its tax credit of $3.4 billion for the federal treasury. Ethanol's positive return on investment is clear, and we look forward to working with leaders in Congress to enact an extension of these important incentives.

Posted by: Brian Jennings

Second annual ACE ethanol fly-in wraps up in DC

Thirty members of the American Coalition for Ethanol (ACE) have spent the last two days on Capitol Hill for the second annual ACE "Biofuels Beltway March," a DC fly-in that puts grassroots ethanol advocates in touch with Members of Congress.  We'll provide a full report as the staff members return to the office tomorrow, but initial reports are that the event was a great success!

What a critically important time to visit face-to-face with Congress.  So many important issues are at hand, including the extension of the Volumetric Ethanol Excise Tax Credit, the need to approve E15 for all vehicles, and legislation to promote more flex-fuel vehicles and ethanol blender pumps.

To see brief reports from some of the fly-in participants, go to www.twitter.com and search for #ACEflyin to see all 'tweets' marked with the official event hash tag. 

Posted by: Kristin Brekke

National Agriculture Week: Celebrating the contributions of farmer-owned ethanol plants

In honor of National Agriculture Week, we here at the American Coalition for Ethanol (ACE) would like to say a big "thank you" to farmer-owned ethanol plants.  Farmers were some of the first to believe in ethanol and take the risk of building ethanol plants in their local communities with local investment.  Would the others who followed in ethanol production have invested in building plants if the farmer-owned ethanol plants hadn't proved successful?  Some may have, but I bet many would not. 

Farmer-owned plants in large part can be thanked for giving ethanol a good start and laying the foundation for the widespread production of ethanol we have today.  It was visionary, really.

We did some research into the current ownership structure of U.S. ethanol production and found that farmer-owned plants are still a very important part of the industry.  Forty-four of the approximately 200 operating ethanol plants are farmer-owned, or 22 percent.  These farmer-owned plants produce nearly 2.5 billion gallons of ethanol annually, representing nearly one-fifth of the industry's total capacity.  And many more ethanol plants can be considered "locally owned" because local community members are shareholders in the company.

And regardless of its ownership structure, each ethanol plant benefits its local ag economy through a new market for grain, an improved basis, and the availability of distillers grain as livestock feed.  Not to mention the benefits to the economy at large of good jobs, increased tax revenues, and so on.  So, as you celebrate National Agriculture Day, be sure to thank a farmer for the food on your plate, as well as the fuel in your tank!  Read ACE's full statement here.

The best ethanol lobbyists

In just a few days ACE members will set out to take part in our annual “fly-in” where we showcase to Members of Congress the grassroots strength and voice of the ethanol industry.  Every advocacy/trade group in the country has a lobbyist – there’s nothing particularly special about that.  What makes ACE unique and helps us effectively advocate for aggressive and progressive ethanol policies is that we have thousands of grassroots members who are willing to take the time to let their Members of Congress know why ethanol is important to them.

A handful of these advocates join us each year in DC for the fly-in.  During last year’s fly-in ACE members Vivian Pappel (who owns a lab supply company in Nebraska), Rich Wiarda (a South Dakota farmer and board member for an ethanol plant) and Bill Hejl (a North Dakota farmer and former president of the World Association of Beet and Cane Growers) and I met with several Members of Congress and their staff.  Vivian, Bill, and Rich are pictured here with the Legislative Assistant in the office of Congressman Steve Kagen of Wisconsin.

Vivian said she had never “lobbied” Congress before, but thanks to some help from her teammates, a briefing we did for her and others prior to the Hill visits, and a few tips on effective lobbying – she was a rock star, as were Rich and Bill. For example, Vivian was able to impress upon Congress that her laboratory is able to create new jobs when her ethanol plant customers are doing well, and alternatively she faces the thankless proposition of cutting jobs when her ethanol plant customers are hurting.  It is one thing for a registered lobbyist to tell a Member of Congress that ethanol creates jobs in rural America – it is quite another for a business owner like Vivian to make that case.

Vivian’s story is the genuine grassroots narrative that is so compelling to Members of Congress.  It is that sort of compelling ethanol story our members intend to convey on March 22-23 in DC, when we make our voices heard on issues such as VEETC reauthorization, blender pumps, and FFVs.  There are still a few days remaining to sign up for the fly-in.  Register or learn more at this link.

Posted by: Brian Jennings

It's just the beginning of higher corn yields

America's farmers grow 588 percent more corn per acre today than they did 80 years ago.  Isn't that an awesome statistic?

And this might be just the beginning, according to experts interviewed for the March/April issue of Ethanol Today.

Many believe corn yields could double again by mid-century.  In its strategic plan, the National Corn Growers Association says it's using a "conservative forecast" of 205 bushels per acre by 2020.  NCGA President and family farmer Darrin Ihnen notes in his ET guest editorial that the 24 winners of last year's national corn yield contest averaged yields of 300 bushels per acre or better.  That gives us a glimpse at what future yields may be possible.

Ethanol critics, take note -- with yield improvements like this, it does not require the tilling of more land to grow more corn.  With better seed genetics and new farming technologies, America's farmers are growing larger crops on the same amount of land.  In fact, last year's record corn crop was actually grown on 7 million fewer acres than were used to grow the previous record.  And it's important to note that these crops are being produced using fewer energy inputs and with less environmental impact.  In farming, just like in other industries, they're figuring out ways to do things more sustainably.

"The times, they are a-changin'," as the saying goes.  My dad says when he started farming in the late '50s, corn yields of 100 bushels per acre weren't even imaginable.  Today, triple-digit yields are the norm, even here in South Dakota where we're considered to be in the western part of the Corn Belt.  My husband and I are honored to be the fifth generation on my family's farm.  What will yields look like during our generation and the next?  I'm excited to be here as it all unfolds.

The world is a bigger place today, with a growing number of people and a larger population that can afford more protein in their diet.  We also need to diversify our energy supplies and wean ourselves from the petroleum-only diet.  What a better solution than to take this abundance of corn, use the starch to make renewable ethanol, and use the actual "food" portions of the kernel to create a high-protein livestock feed at the same production facility.  Seems like a win-win.

America's farmers are the most productive anywhere, and I know they're up to the task of producing the food, feed, fiber, and fuel that the world needs.  Go farmers!

Click on the cover image at the left to view the new digital version of Ethanol Today magazine.

Posted by: Kristin Brekke

Lawmakers need to hear from the real ethanol experts

This photo was taken March 4, 2009 of part of the group that traveled to Capitol Hill for the American Coalition for Ethanol's first-annual "Biofuels Beltway March."  These folks are the real ethanol experts -- the best and most effective lobbyists.

In their day jobs they are farmers, small business owners, ethanol producers, bankers, educators, and accountants.  Last March these ethanol advocates became ethanol lobbyists and met personally with more than 70 Members of Congress or their staff, and with Lisa Jackson, Administrator of the U.S. EPA.

The word "lobbyist" so often has a negative connotation, but here that's not the case.  These people each had real-life experience with ethanol and a personal message to bring to Congress.  They were able to share first-hand stories and answer questions in a way that a paid lobbyist can't. 

I was part of a small group that visited the office of U.S. Senator John Thune, as seen below.  Two members of the group were farmers from South Dakota, both members of the board at one of the state's ethanol plants.  They had the incredible opportunity to sit down across the table from a person in DC who makes decisions that directly impact their business -- both farming and ethanol production.  They told about the current difficult financial situation and offered suggestions for ways federal programs could be altered to be of much better service to ethanol producers.  This face-to-face interaction with Members of Congress is simply the most effective way to get our message across about ethanol.

Will you join us in sharing the ethanol message in DC?  Please consider taking part in ACE's second annual fly-in, set for March 22 and 23.  More details and registration information can be found at www.ethanol.org under the "Get Involved" tab on the right.  An article recapping last year's event can be read at www.ethanoltoday.com in the April 2009 issue located in the Archives. 

ACE needs your help to tell Congress to extend the ethanol tax credit, approve E15 for all vehicles, and push for more flex-fuel vehicles and ethanol blender pumps.  Thank you!

Posted by: Kristin Brekke

 

What's going on in California?

If we’re talking ethanol, a lot.  California is the largest state market for ethanol, and decisions being made there are creating one of those “I’ve got good news and bad news” scenarios.  Which do you want first?

The good news is very good.  After years of using only a 5.7 percent ethanol blend (and still being the largest ethanol market), California now allows 10 percent ethanol per gallon of gasoline, and the state is in full switch-over mode to E10.  Drivers there probably didn’t even notice the difference, but they now are the benefiting from having almost twice as much clean burning, renewable ethanol in their tanks.  This is good news for those motorists, for the state’s air quality, and for America’s ethanol producers who have a newly expanded market.

However.  There is this matter of the LCFS – low carbon fuel standard.  The bad news is that the California Air Resources Board is insisting on charging biofuels with “indirect effects” while charging all other fuels with only “direct effects.”  Hardly seems fair.  If the LCFS moves forward as written, corn-based ethanol may not qualify as a low-carbon fuel for use in California.  This article in the Aberdeen, SD American News goes into more detail about the potential implications.

Ethanol Today magazine is featuring this issue in its March/April edition.  Read more in "Ethanol in California: Past Success, Future Questions" now available online.

Posted by: Kristin Brekke

Small engine arguments against ethanol are getting air time

"Everything in this room would be destroyed," a lobbyist from the Outdoor Power Equipment Institute tells KSTP-TV as he stands in a showroom filled with lawn mowers, chain saws, and other small engines. He is warning of what he calls the "dangers" of increasing the ethanol blend beyond 10 percent.

The Minneapolis-based TV station aired a special investigative report last night on the efforts to increase the ethanol blend level from E10 to E15 or E20. Although the piece wasn't as one-sided as the promotional video posted earlier in the day (the ominous voice-over warning of voided warranties and your family's safety being in grave jeopardy), KSTP still missed some basic facts that deserve a hearing.

First, the government requires volumes of testing to be completed before any new fuel blend is approved, and they're not going to approve anything that is unsafe.

Second, even when E15 and E20 are eventually approved, there will still be choices at the pump for consumers who prefer to use E10 or unleaded. Those with classic cars or small engines, for example, will not be forced to use any fuel they don't want to use. The American Coalition for Ethanol believes in the consumer's right to choose, and we will continue advocating strongly for this.

Third, a point for conversation.  Ethanol is being required to provide volumes of scientific proof that these blends will indeed work, yet ethanol's opponents are not required to provide this same volume of evidence when they say things like "Everything in this room will be destroyed."  We will continue to work with policymakers and regulators to provide all the documentation they need to make sound decisions on ethanol, because we know the facts are on our side.  All we ask is that people -- including the media -- ask for the same amount of information on both sides of the discussion.

Posted by: Kristin Brekke

For more information, take a moment to view this video response to the KSTP story from ACE's Executive Vice President, Brian Jennings: