Ethanol. Right. Now.

Gas prices and the ethanol tax credit, in perspective

As we prepare for our ACE fly-in to DC happening next week, I crunched a few numbers and found the results interesting:

During March 2009, the time of our first DC fly-in, gas prices were under $2 per gallon.  Today, gas prices are averaging above $3.50 per gallon -- which means we're spending a half-billion more dollars per day to fuel our cars.  Every day, the U.S. is spending almost $1.5 billion just on gasoline, not including diesel or jet fuel.

Just the increase over March 2009 will be triple what the U.S. spends on the ethanol tax credit (VEETC, the Volumetric Ethanol Excise Tax Credit) by the time we get to DC next week.

The ethanol tax credits each year costs about what U.S. motorists spend on gasoline in only 4 days.

Does this put a few things in perspective?

Posted by: Ron Lamberty, Vice President / Market Development, American Coalition for Ethanol

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

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

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

 

Fly-in participants represent the diversity and depth of the ethanol industry

The ethanol advocates who participated in the DC fly-in well represent the variety of the U.S. ethanol industry and its supporters.

Thirty ACE members came to Capitol Hill, representing 13 different states: Nebraska, Iowa, Virginia, North Dakota, Missouri, South Dakota, Idaho, Texas, Illinois, Kansas, Wisconsin, and New Jersey.

The group included ethanol supporters from all areas of the industry: ethanol producers, farmers, investors, lenders, mid-range blend and flex-fuel advocates, and businesses that supply goods and services to the industry, such as engineering and laboratory companies.

Ethanol support runs deep, and the advocates who came to the Hill are a good representation of the Americans supporting ethanol because of its benefits to the economy, to agriculture, the environment, and to our energy security.

Senate Energy Committee staff speaks to ethanol group

Tara Billingsley, who serves as professional staff for the Senate Energy & Natural Resources Committee, spoke to the American Coalition for Ethanol members gathered in DC for the "Biofuels Beltway March."  She works closely with Senate leadership on biofuels issues and told the group that they are "very engaged and motivated on the issue."

Billingsley feels that in the short-term, lower oil prices may in fact help the ethanol industry because those lower prices may begin to drive consumption. 

She also mentioned the issue of "indirect land use change" as a challenge we'll need to face.  Congress gave EPA a really difficult job in, she said, in having a short amount of time to craft rules on how this issue will be treated. 

Ethanol advocates are working hard to ensure that ethanol - and specifically corn-based ethanol - is treated fairly and the regulations are based upon sound science.

Grassroots Voices: Report from DC

Scott Parsley -- Madison, South Dakota

Today we had the opportunity to visit with those who support ethanol and have long fought the battles for a strong agricultural economy as well as energy independence. 

Senator John Thune continues to look for means by which to move the ethanol industry forward.  We also had the opportunity to visit with Congresswoman Fudge from Cleveland, Ohio who has no agriculture or ethanol in her district, and we hope we were able to provide information that will be useful to her as she has the opportunity to vote on ethanol issues. 

We have had the opportunity to tell our story and tell how urgent the ethanol issues are today, and that we must all act to save the industry now.

EPA Administrator speaks to ethanol group: "You're part of the solution"

Lisa Jackson, Administrator of the U.S. Environmental Protection Agency (EPA), spoke to the group of 30 ethanol advocates gathered in DC.

"You're part of the solution," she said to the American Coalition for Ethanol (ACE) members.

Jackson spoke to the group for about 15 minutes, then shared question and answer time.

"We're trying to move to a different fuel mix in this country," Jackson said. "Corn-based ethanol is here, part of our mix now."

She spoke highly of Agriculture Secretary Tom Vilsack and his depth of understanding about ethanol-related issues.  EPA and USDA often work together on biofuels-related issues.

Jackson said she knows the blend wall issue is something we're very concerned about, and many of the questions from the group surrounded the blend wall and how it can be overcome - quickly.

ACE President interviewed on importance of trip to DC

Bob Scott, President of the American Coalition for Ethanol (ACE), was interviewed this morning prior to ACE's "Biofuels Beltway March." 

Check out this video clip on YouTube: http://www.youtube.com/watch?v=AAuStnyP3Lo

Advocates go to Capitol Hill for ethanol

Grassroots ethanol advocates from across the country are gathering today and tomorrow in Washington, DC to take their message to Members of Congress and the Administration. 

This blog will be updated live from the event, so check back often or sign up for the live feed.  Also visit www.ethanol.org and click on the "Get Involved" tab for more details on the event and its participants.

The snow storm has put a kink in some travel plans, but has not dampened the spirit of the ethanol supporters who have traveled to the nation's capital for this important event hosted by the American Coalition for Ethanol (ACE). ACE is the nation's largest ethanol advocacy association, with 1500 members nationwide - farmers, ethanol producers, businesses that supply goods and services, ag associations, renewable energy advocates.