Renewable Fuels Now

Sioux Falls, SD (August 7, 2008) Stephen Johnson, Administrator of the U.S. Environmental Protection Agency (EPA), today announced the agency’s decision to deny the request by the Texas Governor for a waiver from the Renewable Fuels Standard. The American Coalition for Ethanol (ACE) applauded the EPA for its thorough review of the facts in the case.

“From the start we have welcomed a fact-based discussion about ethanol’s role in feed, food, and fuel prices, and with this decision the EPA has acknowledged the overwhelming evidence of ethanol’s benefits to the nation’s economy and to the budgets of Americans who are struggling to pay for fuel. It is a fact that ethanol is saving motorists money at the pump, and those fuel price benefits far outweigh the small increase in food prices,” said Brian Jennings, Executive Vice President of ACE.

Gas prices have dropped for several days in a row, and ethanol’s downward pressure on gas prices is well documented. An Iowa State University study shows that the availability of ethanol has given fuel price relief to motorists in all regions of the country by an estimated 29-40 cents per gallon at retail. Merrill Lynch analysts state that if ethanol producers weren’t expanding their output, the price of oil and gas would be 15 percent higher. And the U.S. Departments of Agriculture and Energy found that without ethanol, motorists today would be paying 20-35 cents more at the pump.

“Just because Big Food companies feel they are entitled to cheap corn forever does not justify their politically-driven effort to dismantle ethanol policy. Today’s ruling by EPA sets a precedent for others who would try to influence ethanol policy relying upon dishonest PR attacks instead of science and hard data,” Jennings said.

Independent economic experts agree that biofuels-related feedstock demand has very little to do with retail food prices, the USDA and DOE stating that 96-97 percent of the food price increase has nothing to do with ethanol. Though much of the media attention has been focused on increasing food prices, the increase in gas prices has a far bigger impact on Americans’ pocketbooks. Figures from the Bureau of Labor Statistics show that since January 2002, American families have seen their food price expenditures increase by $13 a week, while they are spending an additional $58 a week to fuel their cars - that’s a 23 percent vs. a 335 percent increase.

“Despite a multi-million-dollar PR campaign by Big Food and Big Grocery to convince consumers otherwise, ethanol has very little to do with what we pay for food at retail. Now that corn prices have dropped by 30 percent and there are forecasts of a large corn crop, we’d like consumers to keep an eye on their grocery bills and start asking questions if their prices don’t go down accordingly,” Jennings added.

The American Coalition for Ethanol (ACE) is the grassroots voice of the U.S. ethanol industry, a national trade association for the ethanol industry with nearly 1,600 members nationwide, including farmers, ethanol producers, commodity organizations, businesses supplying goods and services to the ethanol industry, rural electric cooperatives, and individuals supportive of increased production and use of ethanol. For more information about ethanol or ACE, visit www.ethanol.org or call (605) 334-3381.

Omaha, Neb. (August 7, 2008) – On August 7, 2008 the Environmental Protection Agency denied Texas Gov. Rick Perry’s request to reduce America’s use of renewable fuels like ethanol; Gov. Perry requested a waiver to cut the current ethanol mandate that was enacted as part of the Renewable Fuel Standard. The decision ensures that consumers will continue to benefit from an expanding supply of domestically produced renewable fuel, which is helping to lower gas prices.

Those savings at the pump are considerable — as much as $500 per year for the average family, according to estimates by Merrill Lynch, Iowa State University and others.

“Today’s decision is an important win for American consumers,” said EPIC Executive Director Toni Nuernberg. “People are justifiably focused on pocketbook concerns in today’s economy. Ethanol is one of the few things helping families save money.”

Ethanol is an essential ingredient in America’s fight to keep gas prices low and declare our Energy Independence. This is a big win for Americans, as Gov. Rick Perry proposed ethanol waiver would significantly reduce the amount of ethanol produced in America.

To learn more about the Renewable Fuel Standard visit the EPA’s Web site.

Learn about how you can declare you Energy Independence!

About EPIC: The Ethanol Promotion and Information Council is a nonprofit organization of ethanol producers and industry leaders who have come together to spread the word about the benefits of ethanol through information and promotional programs. To learn more about ethanol, visit www.DrivingEthanol.org. Looking for experts to interview for your stories? Visit http://experts.drivingethanol.org for nearly 100 biofuels experts in more than 30 areas.

EPA MADE THE RIGHT DECISION, SAYS RFA
(Washington, DC) Reacting to the announcement by the Environmental Protection Agency (EPA) that it denied the Renewable Fuels Standard (RFS) waiver request by Texas Governor Rick Perry, Renewable Fuels Association President Bob Dinneen issued he following statement:

“This is an important victory for all Americans. Today’s EPA decision recognizes the importance of biofuels to the American economy. The Renewable Fuels Standard is critical to our nation’s goals of reducing oil imports, addressing environmental challenges and developing the promising next generation of biofuels from cellulosic feedstocks.

“The RFS is designed to expand annual biofuel use to 36 billion gallons by 2022 with 21 billion gallons from switch grass, wood chips, municipal garbage, and other cellulosic sources. If EPA had agreed to the waiver request, our oil import dependence would have increased. Moreover, such a decision would have sabotaged the development and growth of new technologies and a cellulosic biofuels industry. Thankfully, the EPA recognized this grave risk and rejected the waiver request.

“At the end of the day, the EPA rejected the waiver request for failing to present sufficient evidence showing that the RFS was causing severe harm to the US or even to the Texas economy. Rightly, the EPA took notice of studies by Texas A&M University, Purdue University, and others which clearly state that skyrocketing oil prices are the main driver behind higher corn prices. These studies also lay bare the fact that reducing the RFS would have minimal impact on the price of corn.

“EPA’s decision is a benefit to the US economy, because increasing domestic ethanol production is keeping gasoline and oil prices lower than they otherwise would be thereby saving the average American household as much as $500 a year in lower transportation costs.

“Most economists now recognize the real severe economic harm is being done by the skyrocketing price of oil and not by ethanol production. In fact, without ethanol production the damage from high oil prices would be even worse.

“We applaud the EPA for keeping America squarely on the path toward greater energy independence.”

For more information, visit the Renewable Fuels Association website

View USDA Food and Fuel Slides

(Omaha, Neb.) – The total global increase in corn-based ethanol production accounts for only 3 percent of the recent increase in global food prices.

After the hype, hysteria and spin of the ongoing “food and fuel” debate, these facts from the Council of Economic Advisors provide further proof the ethanol industry has been made a scapegoat for global issues beyond our control.

For many ethanol critics, it is easy to look past the primary factor that is causing a ripple effect throughout the global economy – namely exorbitant oil prices which have increased from $35 in 2005 to more than $125 today – nearly 300 percent.

The growing outcry to relax renewable fuels requirements is ill-advised. Changing U.S. energy policy will not provide short-term relief on the food supply and decrease food prices as many expect. In fact, relaxing the renewable fuels mandate actually may escalate food prices now and in the future by driving fuel prices even higher. Across the country, including 10 percent ethanol in gasoline has held the price per gallon down by $.15 to $.45 depending on the region of the country. Reducing ethanol requirements by 50 percent removes 4.5 billion gallons of ethanol from the fuel supply. This will reduce the total fuel supply, causing transportation, fertilizer, fuel, packaging and other food production costs to continue to increase, further inflating the price of food.

Corn-based ethanol is not a silver bullet, yet it is the pioneer of the renewable fuels industry. By contributing to research funding, it is opening the door for future advancements such as cellulosic ethanol made from non-food biomass such as switch grass and wood waste. It has created a production and delivery infrastructure, and it is used and accepted by millions of consumers, making the transition nearly seamless.

If we are to solve the issue of rising costs throughout the entire global economy, we must find solutions to our dependence on outrageously expensive foreign oil.

View Chart

OMAHA, NE (May 8, 2008) — With gas prices in some cities nearing $4 a gallon, new research has confirmed that ethanol is saving U.S. drivers money. On the coasts, where gas prices are especially high, drivers are saving an average of $142 a year on regular unleaded. In the Midwest, they are saving $241 a year.

Researchers at Iowa State University recently studied ethanol’s impact on gasoline prices around the country and concluded that, by expanding the fuel supply, ethanol has made gas cheaper by 29 cents a gallon to as much as 40 cents a gallon.

The researchers found that on the coasts, drivers save an average of 23 cents per gallon. The savings are significant in other parts of the country, too: On the Gulf Coast, it is 25 cents per gallon; in the Rocky Mountain States, 17 cents; and in the Midwest, where U.S. ethanol production is concentrated, drivers save 40 cents a gallon.

Renewable Fuels Now considered Federal Highway Administration figures on vehicle fuel efficiency and average miles driven per year to extrapolate these average yearly savings thanks to ethanol:

• East Coast: $142.42
• Midwest: $241.44
• Gulf Coast: $150.36
• Rocky Mountains: $104.52
• West Coast: $142.42

For a copy of the Iowa State University report, click here..

View Survey Results

Omaha, NE (April 23, 2008) — When it comes to energy, Americans worry most about
dependence on foreign oil.

Almost half of the 1,200 voters polled by Peter D. Hart Research Associates Inc. rate imports one of their two biggest energy concerns. A distant second is the lack of viable alternatives to fossil fuels.

The U.S. imports about two-thirds of its oil. Of all the energy the country consumes every year, only 6 percent is renewable (excluding nuclear). The rest is oil, gas and coal.

Fifty-seven percent of voters rate energy issues as “very serious” concerns. Fewer say the same about the state of public schools (51 percent), job security (48 percent), home foreclosures (46 percent) or global warming (43 percent). Only the war in Iraq and the health insurance crisis top energy issues as very serious concerns for more voters (67 percent and 62 percent, respectively).

What is the best way to solve America’s energy problems? According to 51 percent of voters, the answer is to invest in renewable energy sources; 28 percent call for energy efficiency and conservation policies; and only 17 percent favor more drilling and mining for domestic fossil fuels.

“These numbers show Americans are worried about how they’re going to fill their gas tanks and heat their homes in the future — and they should be,” said Toni Nuernberg, executive director of the Ethanol Information and Promotion Council, a member of the Renewable Fuels Now Coalition, which commissioned the January 28 to February 2 survey. “Using more ethanol and other renewable fuels means we’re going to be less dependent on oil from unstable parts of the world.”

There are also clear economic benefits. Oil and gas prices would be 15 percent higher than they already are if not for biofuels, according to Merrill Lynch commodity strategist Francisco Blanch, and that would push up food prices (since it requires fuel to cultivate, harvest and bring food to market.)

Eighty percent of the voters in the survey say government should give more incentives to encourage the development of renewable fuels such as ethanol and biodiesel.

Seventy-six percent want government to require more renewable fuels such as ethanol and biodiesel to be blended into fuel for cars and trucks.

“Americans believe it is critical to keep building a strong energy program that includes biofuels such as ethanol,” said Nuernberg.

About the Renewable Fuels Now Coalition
Renewable Fuels Now is a coalition representing the ethanol, biodiesel, agriculture and other industries that support increased use of homegrown renewable fuels as part of a balanced energy policy for America. To learn more, visit www.renewablefuelsnow.org.