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EPA blend wall

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The longer it takes the more pressure it puts on the ethanol industry to work on installing high blend ethanol pumps..you know ..using ethanol as REAL alternative fuel instead of as a filler..choice at the pump

 

yeah yeah bottoms up also gets us  to high blend..

 

I'd like to see legislation that prevents Ethanol Exports (short term 5-10 years) as a way to not allow the ethanol industry to weasel out of installing high blend in the US ..

 

Far easier to simply ship production over seas than it is to actually support building out E85 / blenders in the US...

 

Oil built out their infrastructure  ..firm believer that ethanol needs to do the same ..build it out ..lease the stations/pumps

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There is not enough capital left in the industry for a build out right now Dan. Granted they should have done this earlier but did not. I see about 1/3-1/2 of the plants now offering very competitive E85 (or E98) wholesale at their gate now but without money to build retail (please note that the retail GAS market is saturated meaning there is no income there to support the flegling E85 pump) then the industry is stuck with being wholesalers. What good is it to offer even more wholesale if retailers sell it at 3x the margin of gas w/o selling much (because of lack of competition to force better prices). I think it is going to take more time and pump subsidies, plus a laid out federal plan for 10 years of blender credits on high ethanol blends to make this go. Far better flex vehicles and more of them will also greatly help get retail going.

 

This industry will be sold off to oil before the real foundation is laid.

 

More on the E15 fiasco;

 

http://www.dtnprogressivefarmer.com/dtnag/common/link.do;jsessionid=A2FB6883B3DB04EA8D239F9954AFCD04.agfreejvm2?symbolicName=/free/news/template1&product=/ag/news/topstories&vendorReference=03c04f6a-bd64-4713-ac52-9066f87bb730&paneContentId=3030&paneParentId=0

 

"EPA: More Ethanol Blend Tests Needed 

Decision on E15 Blend Rate Expected in September

Thu Jun 17, 2010 06:22 PM CDT 

 

WASHINGTON (Reuters) -- U.S. environmental regulators said on Thursday they hope to make a decision on higher ethanol blends by the fall, a month or two later than had been expected.

 

 

The Environmental Protection Agency had been expected to get the results of the testing later this month and to make a decision on whether to allow levels of up to 15 percent ethanol in traditional gasoline. (DTN file photo)The Environmental Protection Agency also said it expects the Department of Energy to complete testing on higher blends on cars build after 2007 by the end of September. The tests had been expected to be completed later this month or a bit later.

 

"While results from the tests conducted to-date look good, EPA will not make a final decision until DOE completes its current comprehensive testing of the newer vehicles," EPA said.

 

The Renewable Fuels Association said in a news release that EPA is "adding insult to injury" by only considering the higher blend rate in 2007 or newer vehicles. Pushing back that decision to September delays the approval process for vehicles from 2001 or newer to later this fall.

 

“EPA is dropping the ball, and for no scientifically justified reason,” said RFA President and CEO Bob Dinneen. “While initial plans to approve the use of E15 for only 2001 and newer vehicles were bad, this plan borders on shameful. Confusing the market as EPA seems intent upon doing likely will lead to little if any additional ethanol being sold.”

 

Dinneen continued, “President Obama this week rallied the nation to an Apollo-like program to end our dependence on oil. By pursuing this path, EPA is failing to answer the President’s charge.”

 

Allowing up to E15 blends, up from current 10 percent limits, would mean a potential increase of 6.5 billion gallons of new ethanol demand, displacing more than 200 million additional barrels of imported oil, according to the RFA news release. "

 

 

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Heck I say forget about E15, mandate FFVs (not generally in favor of mandating anything, but OK with it when it expands consumer's choices) and let e85 grow the ethanol market.

 

I know it's not THAT simple but couldn't it be? I guess the best scenario IMO would be able to buy the new car I want to and burn the fuel of my choice in it with no worries.

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http://www.growthenergy.org/news-media-center/releases/letter-to-the-white-house-from-growth-energy/

 

"

 

June 17, 2010

Letter to the White House from Growth Energy

 

Author: Growth Energy

 

In response to recent developments related to Growth Energy’s Green Jobs Waiver, Growth Energy CEO Tom Buis wrote the following letter to President Obama. View a PDF version.

 

June 17, 2010

 

President Barack H. Obama

The White House

1600 Pennsylvania Avenue, NW

Washington, DC 20500

 

Dear Mr. President:

 

I am writing on behalf of Growth Energy, which represents 58 ethanol plant members, 38 associated industry members and more than 18,000 individuals to express our disappointment that the federal agencies involved in making a decision on Growth Energy’s Green Jobs Waiver have delayed action yet again on allowing an increase in the amount of ethanol that can be blended with gasoline. As you have said yourself, Mr. President, accelerating the production of domestic ethanol would create U.S. jobs, help clean our environment, and strengthen our national security. Every day we delay the decision on the Green Jobs Waiver for E15 is another day we continue our addiction to foreign oil.

 

Mr. President, in March of 2009 Growth Energy filed a waiver with the U.S. Environmental Protection Agency to raise the amount of ethanol that can be blended with gasoline from 10 percent to 15 percent. Accompanying our waiver was a significant body of data which we believe demonstrates that raising the blend to 15 percent ethanol meets all the requirements of the Clean Air Act.

 

The waiver process requires a decision on a waiver within 270 days. However, instead of making a decision, EPA informed us on Dec. 1, 2009 that they were delaying the decision until the U.S. Department of Energy completed their own studies on the impact of moving from E10 to E15. EPA made a promise in writing that the decision would be made by the middle of this year. We are hearing that the decision on the waiver will again be delayed because the DOE tests would not be completed until this fall.

 

As you would expect, we find this further delay unacceptable. The fact that the federal agencies involved here cannot meet their own deadlines – on a decision that means so much to our nation – reinforces a public perception that government bureaucracy does not work in the best interests of the public. Approval of our waiver would create more than 136,000 new jobs in the U.S., reduce our dependence on foreign oil by 7 billion gallons, reduce greenhouse gas emissions equivalent to removing 10.5 million cars from the road, and revitalize our rural communities.

 

We urge you to direct the federal agencies involved in this waiver to expedite the testing process, add extra staff, additional shifts, or whatever other steps necessary to accelerate the completion of the testing. Again, the waiver decision should have been made in December 2009; when that deadline was not met, we were promised a decision in mid June of this year. Now we are again being told to wait for testing that we believe was unnecessary in the first place to make a decision.

 

Again, we recognize your leadership and support for renewable fuels and for your efforts to reduce our nation’s addiction to foreign oil. We want to help. The U.S. ethanol industry currently provides almost 10 percent of our nation’s blended gasoline use, but we can do much more if the barriers that have been erected by the federal government are removed.

 

We certainly understand that there many vested interests that do not share our belief that we should reduce our dependence on foreign oil. One well-worn tactic for delaying action in Washington, D.C., is to continually study or demand further testing. But as the data submitted with our waiver shows, the science already proves the benefits of ethanol as a transportation fuel; the demands for testing beyond the requirements of the Clean Air Act will do nothing to meet our nation’s objective of energy independence, and in fact will also delay the development of cellulosic ethanol. We also stand with you in pursuing energy legislation in Congress to create a national energy policy that creates jobs in the United States, improves our environment and strengthens our national security by reducing our reliance on foreign oil. As you have said yourself, “Inaction is unacceptable.”

 

We believe that can be accomplished with legislation requiring automakers to produce flex fuel vehicles and retailers to install blender pumps nationwide so that we create an open market that will allow consumers to choose their fuel at the pump – whether that be domestic ethanol or gas refined from foreign oil. We ask you for your support of that legislation to expand the infrastructure for delivering domestic ethanol to consumers through the installation of 200,000 blender pumps and the mandate that all automobiles sold in America be flex fuel vehicles.

 

With fossil fuels getting dirtier, costlier and riskier to extract, as we are witnessing with the epic catastrophe in the Gulf of Mexico, now is the time we should move on expanding the production and consumption of clean, renewable fuels like ethanol. As you have said yourself, if Brazil can become energy independent with the use of domestic renewable fuels such as ethanol, so can the United States. The obstacles that we face are our own federal regulations limiting the amount of ethanol that can be blended, and the lack of a coherent national energy policy that would remove the infrastructure and market barriers that prevent consumers from having a choice of fuels. We urge you to move quickly and end any further delay on E15, as well as support our effort to open the transportation fuels market – with FFVs and blender pumps – to give consumers more choice at the pump.

 

Mr. President, we look forward to working with you as we take immediate action to move this country forward on developing clean, renewable fuels.

 

Sincerely,

 

Tom Buis

CEO, Growth Energy

 

cc: Agriculture Secretary Tom Vilsack

      Energy Secretary Stephen Chu

      EPA Administrator Lisa Jackson

 

"

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We believe that can be accomplished with legislation requiring automakers to produce flex fuel vehicles and retailers to install blender pumps nationwide so that we create an open market that will allow consumers to choose their fuel at the pump – whether that be domestic ethanol or gas refined from foreign oil. We ask you for your support of that legislation to expand the infrastructure for delivering domestic ethanol to consumers through the installation of 200,000 blender pumps and the mandate that all automobiles sold in America be flex fuel vehicles.

 

 

 

 

I really think that is the key.. as Steve was saying as well.. get the FFV mandate so it is law ..not just a pledge..Although I have to say I believe the auto Industry for the most part is keeping to their end of the deal..If the Stations are / Blenders are installed I do believe the Auto Industry will have the vehicles

 

 

 

 

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Heck I say forget about E15, mandate FFVs (not generally in favor of mandating anything, but OK with it when it expands consumer's choices) and let e85 grow the ethanol market.

 

I know it's not THAT simple but couldn't it be? I guess the best scenario IMO would be able to buy the new car I want to and burn the fuel of my choice in it with no worries.

 

I agree, and would like to add something.  Take E85 mileage into account when figuring CAFE, after you mandate that everything is an FFV.  I predict E85 mileage would go up rather rapidly.

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