WASHINGTON, DC –  Growth Energy and the Renewable Fuels Association issued the following joint statement today in response to questions from the press concerning an effort by the ethanol groups to block flawed regulation, proposed by the California Air Resources Board (CARB), which would unfairly and illegally block low-carbon ethanol from the California transportation fuels market.


“The litigation filed in U.S. District Court should help fix a serious mistake with California’s Low Carbon Fuel Standard.  The LCFS regulation would not only undermine the intent of Congress to ensure that Californians be able to obtain ethanol from domestic sources, but also cripple the nation's effort to move to more diversified sources of U.S.-produced ethanol, including ethanol from feedstocks other than corn.

"Were California to succeed in discriminating against corn-based ethanol as the LCFS is currently structured to do, it would empower other states to defy the intent of Congress and establish a patchwork of fuel regulations that would greatly complicate the nation's fuel infrastructure and potentially limit the trade of fuel and fuel components between states."

Ethanol Groups Challenge Constitutionality of California LCFS

(December 24, 2009) Fresno, California - Relating to the complaint they filed in Federal District Court in Fresno, California, concerning the California Low Carbon Fuel Standard (LCFS), the Renewable Fuels Association and Growth Energy issued the following joint statement:

“If the United States is going to have a low carbon fuel standard, it must be based on sound science and it must be consistent with the U.S. Constitution. California’s Low Carbon Fuel Standard (LCFS) is fundamentally flawed in both respects. Today, in federal court, we filed a lawsuit challenging the constitutionality of the LCFS. As structured, it violates both the Supremacy Clause and the Commerce Clause of the U.S. Constitution.

“The LCFS contradicts the sound judgment of Congress when it passed the 2007 Energy Independence Security Act and singled out the importance of domestic ethanol for our nation’s environment, energy security, and economy. The LCFS erects new regulatory obstacles to ethanol, frustrates the federal Renewable Fuel Standard, and threatens the nationwide market for domestic ethanol. Because congressional policy cannot coexist with California’s regulation, the latter must give way to the former, the supreme law of the land.

“Additionally, by closing California’s borders to corn ethanol from other states, the LCFS will change how corn is farmed and ethanol is produced all over the country. The Commerce Clause specifically forbids state laws that discriminate against out-of-state goods and that regulate out-of-state conduct. The LCFS imposes excessive burdens on the entire domestic ethanol industry while providing no benefit to Californians. In fact, in disadvantaging low-carbon, domestic ethanol, the LCFS denies the people of California a genuine opportunity to clean their air, create jobs, and strengthen their economic and national security. One state cannot dictate policy for all the others, yet that is precisely what California has aimed to do through a poorly conceived and, frankly, unconstitutional LCFS.”

Ethanol plants utilize 29 percent of U.S. grain sorghum
Ethanol Producer Magazine

Posted December 7, 2009, at 1:01 p.m. CST

A recent United Sorghum Checkoff Program-funded study has found approximately 29 percent of the grain sorghum produced by U.S. farmers is used to manufacture ethanol. The study, which was conducted by Agri-Energy Solutions Inc., sought information that will assist the USCP reach its goal of increasing the inclusion rate of grain sorghum in ethanol 50 percent by 2011.

To complete the study, AES developed a set of confidential survey questions that were designed to determine how much grain sorghum is currently being used by ethanol plants. The survey also aimed to determine the primary factors that influence an ethanol plant’s decision to use grain sorghum.

Surveys were mailed to ethanol plants located near large-scale sorghum production regions, including plants in Nebraska, Kansas, Texas, Colorado, Missouri and Arizona. After following up with survey recipients, AES determined sorghum is primarily used for ethanol production in Kansas and Texas. Telephone interviews were conducted with 14 ethanol plants located in these two states.

Data gathered from those 14 plants showed they reported using 248 million bushels of grain last year, including 128 million bushels of grain sorghum, to produce 644 million gallons of ethanol. Although these plants took in less than 1 percent of the nation’s total corn production in 2008, they utilized 27 percent of the nation’s sorghum production.
 
Overall, none of the 14 ethanol plants surveyed reported using only corn to produce ethanol. In addition, all 14 plants indicated that they expect to continue using grain sorghum in the future.

According to Florentino Lopez, the USCP’s marketing director, one reason that grain sorghum is so attractive to ethanol producers today is its price. In general, grain sorghum is currently priced approximately 10 percent below the price of corn. In addition, the ethanol yields on a per bushel basis from grain sorghum are comparable to those of corn.

While four plants reported that price is the primary driver in purchasing starch-based feedstock for ethanol production, four plants reported that the availability of grain sorghum was their primary consideration. The remaining plants reported that price and availability together were their primary consideration.

The interviews conducted with these 14 ethanol plants demonstrated several areas in which education on sorghum’s role in ethanol production is needed. Most survey respondents noted there is a need educate sorghum farmers about ethanol, as well as a need to educate more ethanol producers on grain sorghum. In particular, the surveyed plants identified a need for more assistance from the USCP regarding the advantages of using grain sorghum and cellulosic forms of sweet sorghum. They also expressed a desire to educate nutritionists and feed buyers on the issues surrounding grain sorghum in distillers grains.

Lopez also noted that the while many studies are currently underway to evaluate sweet sorghum, the study conducted by AES evaluated only grain sorghum. “I think the study … shows us that there are a variety of feedstocks that are available for ethanol production,” he said. “Grain sorghum fits into that in places where it is readily available and cost effective… The study tells us that the opportunities for grain sorghum really do exist in ethanol production.”
 

8-28-09--Even Without Clunker Program, Car Buyers Can Save with Flex Fuel Tax Credit

While the “Cash for Clunkers” program has ended, Kansas motorists can take advantage of a $750 tax credit when they buy a flexible fuel vehicle and use E85 ethanol fuel, Kansas Corn Commission Communications Director Sue Schulte said. The FFV option is available on many models of cars, SUVs and pickups. These vehicles are able to operate on any combination of gasoline and ethanol up to 85 percent ethanol (E85).

“Flex fuel vehicles are just that—flexible,” she said. “You can use pure gasoline, or up to 85 percent ethanol whenever you want. It simply gives you more choices at the pump.”

 The state’s E85 tax credit makes buying an FFV an even more attractive option. 

“Even without the Cash for Clunkers program, there are a lot of great incentives for new vehicles with low interest rates and good trade-in values. It’s easy to see why so many people are looking at buying a new vehicle. The state’s E85 tax credit has been around for quite a while and it’s important to remind consumers of this excellent incentive as well,” Schulte said. “A lot of new vehicles have a flex fuel option at no extra cost that allows you to use higher ethanol blends”

Under the state’s FFV tax credit program, the owner of a new FFV has two years in which to use 500 gallons of E85 to qualify for the $750 tax credit.

“With the $750 tax credit and the availability of E85 fuel in cities across the state, why wouldn’t you look into it? There is no downside to choosing a vehicle with the flex fuel option—it gives you more control over your fuel choices,” Schulte said. “Increasing the number of flex fuel vehicles in Kansas fits well with our goal of adding more blender pumps in Kansas and throughout the nation that can offer higher ethanol blends.”

The Kansas Corn Commission has joined several other corn producing states, the Renewable Fuels Association and the American Coalition for Ethanol to add ethanol blender pumps in key locations across the nation. Blender pumps offer E85 fuel as well as other mid-grade ethanol blends such as E20 and E40. Eleven plants currently produce 450 million gallons of fuel ethanol in Kansas providing jobs and economic stability to communities and providing a market for Kansas farmers.

“In a time when people are trying to buy local, why not buy local fuel? Ethanol is produced right here in Kansas with products from Kansas farms,” Schulte said. “With the E85 tax incentive and no added cost for the flex option, buying an FFV looks better than ever.”

Over 45 fuel retailers who sell higher blends of ethanol including E85 are located in cities across Kansas. For a comprehensive E85 station list and for more information on the tax credit, visit www.ksgrains.com.

Where to find E85 Fuel in Kansas

Information on the Kansas E85 Tax Credit

FIND KANSAS ETHANOL BLENDER PUMPS HERE!

8-12-09
Kansas Corn Commission Partners in Effort to Expand Ethanol Fueling Infrastructure
The Kansas Corn Commission is partnering with several corn states, National Corn Growers Association, the American Coalition for Ethanol (ACE) and the Renewable Fuels Association (RFA) to install 5,000 blender pumps across the nation over the next three years. Consumers can enjoy more choices at the pump, gas station owners can experience product flexibility, and the nation can achieve its renewable fuels targets – all thanks to the blender pump and the wider distribution of E85 and mid-range ethanol blends. The program was announced at the 22nd Annual Ethanol Conference & Trade Show in Milwaukee, Wisconsin on August 11.

“This spring, corn grower groups from across the country asked the ethanol associations to work together to give us a proposal for a comprehensive effort to increase the market for ethanol by adding blender pumps to key areas across the nation,“ KCC Chairman Mike Brzon of Courtland said. “This effort goes well beyond just giving retailers money to add an ethanol pump. We will benefit from the expertise of ACE and RFA working together to provide technical and marketing assistance to fuel retailers to help them see the benefit to offering ethanol blends to their customers. They will also help them take advantage of existing state and federal incentives.”

The “Blend Your Own Ethanol” campaign, BYOethanol, will offer a single source of ethanol information and technical expertise for petroleum marketers looking to upgrade equipment or begin offering more choices to their customers. By serving as a central clearinghouse for renewable fuels infrastructure incentives, the “BYOethanol” campaign will bring blender pumps to key areas of the country, and from there they will spread as neighboring gas stations see the benefit and want to remain competitive. Blender pumps are not new to the fuel industry, but are now finding new use with ethanol and E85. A blender pump features two underground tanks, typically one with unleaded and one with E85, and the dispenser blends the appropriate percentages of the two fuels to create any blend of ethanol from zero to 85 percent. Gas station owners benefit from product flexibility and by being ready for future renewable fuel blend levels, and consumers benefit by having new choices at the pump like E20 or E30 for their flexible fuel vehicles.

“This campaign will be successful because it works directly with petroleum marketers, not paying them to put in a blender pump, but explaining to them why it’s a good business decision, how it will benefit the station, and helping them access the state and federal incentives that exist,” said Ron Lamberty, Vice President / Market Development of the American Coalition for Ethanol. “If we present petroleum marketers with the facts about why this is a good business decision – and it is a good business decision – they will consider adding blender pumps to their stations. Now our job is to get this information out to as many of them as possible, and we’ve already begun doing that.”

Along with the National Corn Growers Association, several leading corn-producing states are participating in this program. At press time, states participating are the Kansas Corn Commission, the Kentucky Corn Promotion Council, the Missouri Corn Merchandising Council, the Nebraska Corn Board, and the South Dakota Corn Utilization Council, with several other states on the verge of joining this effort.

“Blender pumps are the best way to expand the reach of renewable fuels, and it’s time for a national campaign to get this infrastructure in the ground and get consumers the choices they deserve,” said Robert White, Director of Market Development for the Renewable Fuels Association. “No matter where their station is located, retailers will have a wide variety of options to increase their profit margin while lowering the cost for consumers. We are grateful to be working with the corn grower organizations and the American Coalition for Ethanol.”

The “BYOethanol” campaign will function as an expanded market development program of the two ethanol groups and will serve as the only one-stop source for all the technical, regulatory, safety, and environmental information petroleum marketers need about retailing ethanol blends. The program will feature extensive work at petroleum marketer events and a Web presence designed specifically for station owners to easily get the information they want. The nearly 200 blender pump locations in the U.S. today can be seen on this map: www.tinyurl.com/ACEblenderpumpmap.

THANKS FOR JOINING US AT THE HUTCHINSON COOP on Thursday, March 26
1200 W. 4th, Hutchinson, KS to celebrate the opening of its new ethanol blender pumps offering E10, E20, E30 and E85 Fuels!!

Follow this link for more information on blender pumps

From the Corn Farmers Coalition:
Director’s Cut: We Hate To Say It, But Here Goes: We Told You So
The newspaper headline shrieked “Ethanol policies fuel food-price rise.”

And they did, according to a report by the nonpartisan Congressional Budget Office.

All of one-tenth; maybe one-sixth tops.

So: Of last year’s 5.5 percent jump in food prices, higher prices for corn, which is used to make ethanol, accounted for about half a percentage point.

Huge news.

Yes, last year’s jump in food prices was the biggest in almost 20 years, says the federal Agriculture Department. And undoubtedly higher food prices cause hardship in our sick economy. It’s clear, as the Congressional Budget Office says in its report, that it’s getting more expensive to feed the poor through government programs such as food stamps.

But blaming corn is just plain dumb. It’s already been tried: Last year businesses that compete with ethanol for corn — especially grocery manufacturers — and competitors to ethanol (the big oil companies) invented a corn shortage and then tried to blame ethanol for it. They hoped to make Congress back off its support for making more of the renewable fuel every year.

But that was a lie, and Congress saw through it. Last year actually saw the second-largest corn crop on record. What’s more, the corn we eat in the form of corn on the cob and creamed corn and the rest is about 1 percent of the corn crop. (The rest is industrial corn that goes to feeding livestock, ethanol, exports and chemicals.)

Last year’s astronomical oil prices, in fact, were what really pushed up food prices, according to the experts. And with lower oil prices this year, the increase in food prices is actually expected to drop to as little as a 3-percent increase, according to an authoritative Agriculture Department survey.

(Meanwhile, ethanol, by expanding the fuel supply, is cutting our dependence on foreign oil and keeping gas prices lower.)
One thing that is getting lost in all this is that, last year’s price spike aside, ethanol has essentially pushed the price of corn up to — gasp! — about what it costs to grow. And with market’s paying farmers for their crops, the government is paying out fewer counter-cyclical supports.

But that’s a discussion for another day. For now, the new study CBO proves one thing: Ethanol isn’t anywhere near the main reason for more expensive food. And to suggest otherwise is a lie.

http://www.cornfarmerscoalition.org

NCGA Applauds CBO Findings: Ethanol Accounts for Only a Fraction of Food Price Increases

ST. LOUIS (April 9, 2009) -- National Corn Growers Association (NCGA) President Bob Dickey released the following statement on the Congressional Budget Office’s April 8 report, “The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions:”

“We applaud this report, the next chapter in a growing narrative that shows ethanol is not principally responsible for higher food prices despite what food companies have tried to make consumers believe during the past 12 to 18 months.

“The report found that the increased use of ethanol accounted for 0.5 to 0.8 percentage points out of the 5.1 percent increase in food prices between April 2007 and April 2008, representing 10 to 15 percent of total food price increases.

“We note that the impact of higher energy costs on food prices represented 36 percent of the overall food price increase. We hope that those who are truly concerned about increased food prices will look to those causes that have played a more significant role, and join grocers and others who are holding food manufacturers accountable for increased food prices at the same time commodity prices – even those for energy – have dropped.”

The report is available for download at the Congressional Budget Office Web site, http://www.cbo.gov

Updated March 3, 2009

What's Renewable to You? E85 Challenge Brings Around 200 KSU Students to Manhattan COOP Fuel Station for Free Fillup!

KSU Students with a student ID got a free tank of E10 or E85 on Monday, March 2 at the Manhattan Coop,  The Renewable Fuels Association along with the Kansas Corn Commission hosted the opening event for the E85 Challenge. After filling up with ethanol blended fuel and a free hot dog lunch, many students opted to cut a video of  "What's Renewable to You?" The focus of the effort is to start a dialogue on college campuses about renewable fuels like ethanol. Visit e85challenge.com to participate on line. Enter the video contest and be eligible to win an Apple Macbook or one of several 500GB Passport hard drives. For contest details, visit e85challenge.com. 
 

Visit the Facebook fan page for the Flex Fuel Challenge!

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Do High Corn Prices Really Cause
High Food Prices?

Follow this link to find the answer to this question and more on our talking points page

Commodity prices account for less than 20 percent of consumer food prices.