BioFuels Journal

by Jerry Perkins, editor, BioFuels Journal.

Orlando, FL—Defending the Renewable Fuels Standard in the wake of a proposed rollback by the Environmental Protection Agency (EPA) in the required amount of renewable fuels to be blended this year was the number one priority voiced at that National Ethanol Conference (NEC), which concluded its one-and-a-half-day run here on Wednesday.

Renewable Fuels Association President and CEO Bob Dinneen set the tone for the conference when he told approximately 1,000 people attending the NEC that ethanol proponents need to protect the Renewable Fuels Standard (RFS) from the EPA’s proposed cut in the required obligations for blending ethanol.

“All we ask of Washington is one thing – Keep. Your. Word,” Dinneen stated, “Keep your word. It’s that simple.”

The ethanol industry and the RFS have been effective in reducing foreign oil dependence and strengthening American energy independence. Dinneen explained.

“The RFS and ethanol have helped drive our import dependence down to just 35% in 2013.”

Ethanol reduced gasoline imports to near zero today and displaced 462 million barrels of imported oil last year, he added in his annual “State of the Industry” speech entitled “Falling Walls, Rising Tides.”

In his remarks, which opened the conference on Tuesday, Dinneen said the strength of the ethanol industry is strong: “capable of surviving and indeed thriving in the face of the worst drought in 50 years and unrelenting attacks from our competitors.

"The state of the ethanol industry is determined – committed to growing markets here and abroad so that consumers have access to clean burning alternatives to petroleum.

"The state of this industry is optimistic – girding for new technologies, new feedstocks, and new markets that will set the standard for the next generation.”

Dinneen predicted that 2014 will be the year of great successes. It will be the year the “blend wall comes crashing down,” “the cellulose wall is cracked,” “the trade wall erected by Europe will be breached,” and “the octane wall crumbles.”

He noted that the theme of the 2014 NEC was “Falling Walls, Rising Tides.”

He quoted John F. Kennedy as stating that “a rising tide lifts all boats” and noted “the notion of a rising tide aptly describes the economic reach of the American ethanol industry.”

Dinneen said that the U.S. ethanol industry has solidified its position as the low cost ethanol producer in the world and stated that “2014 will be a banner year of rising tides and falling walls!”

Looking at 2013, Dinneen noted that the ethanol industry has provided economic benefits to the United States, producing 13.3 billion gallons of fuel in 2013, the second-highest production rate in history.

In 2013, he said, the American ethanol industry was responsible for some 86,500 direct jobs, and another 300,277 indirect and induced jobs.

The U.S. ethanol industry contributed more than $44 billion to the country’s Gross Domestic Product last year and provided $30.7 billion in household income, he said.

And, he added, ethanol plants paid more than $8.3 billion in federal, state, and local taxes.

Dinneen pointed out that the RFS was established to “wean America off our dependence on imported oil,” “stimulate investment in new technologies,” “provide consumers choice at the pump,” and “revive rural economies,” as well as “requiring a reduction in greenhouse gas emissions from transportation fuels.”

“Without question,” he stated, “the Renewable Fuels Standard was, and is, visionary legislation that has become a model for progressive energy policy across the globe…And by any measure, the RFS has been a remarkable success.”

Ethanol production and the RFS are reducing greenhouse gas emissions, he noted, and cited a Life Cycle Associates’ study that showed that corn ethanol production has reduced greenhouse gas emissions by 32% compared to petroleum and 37-40% compared to oil that is extracted from so-called “tight oil” spots by fracking and from tar sands.

“From an environmental perspective, the RFS has been a stone cold winner,” he said.

Dinneen noted that the RFS is under attack by the EPA’s proposal to reduce the 2014 conventional blending requirements from 14.4 billion gallons to 13.01 billion gallons.

Dinneen called the proposed rule “an inexplicable step backwards to what has been an overwhelming successful program.”

However, he expressed hope that the outcry mounted against EPA’s proposal will influence the EPA to restore the cuts to the renewable fuels mandate.

“Thankfully, Americans across the country stood up to express their frustration” with the proposed rule,” Dinneen said.

At a public hearing in December that was held by EPA, Dinneen noted that, by a margin of more than 2-to-1, the citizens who spoke asked the agency implement the RFS according to the statute.

Pointing to the more than 50,000 comments opposing EPA’s proposed blending reductions, Dinneen stated, “now, EPA must listen and lead” while reiterating, “Washington: Keep Your Word!”

On Wednesday, the concluding day of the NEC, the “RFA 2014 Industry Award” was presented by Dinneen to Gerson Santos-Leon, executive vice president of Abengoa Bioenergy New Technologies.

The award was given Santos-Leon, Dinneen said, because he has contributed sustained vision, innovation, and devotion to making cellulosic ethanol a commercial success.

“Gerson is truly one of the great pioneers in the cellulosic ethanol industry.

"His work at the Department of Energy two decades ago helped provide the scientific foundation many companies are relying upon today to move advanced biofuel technologies forward, stated Dinneen.

“And his continued leadership over the past 10 years in bringing cellulosic ethanol to commercial success at Abengoa is a testament to his grit, his genius, and his creativity.”

In addition to his work on research and development at Abengoa Bioenergy New Technologies, Santos-Leon served at the U.S. Department of Energy as the head of their Biofuels Program and received a degree in chemical engineering from the University of Puerto Rico.

Last year’s “RFA Industry Award” was awarded to Scott Zaremba, president of Zarco USA Inc., the first petroleum marketer to offer E15.

Previous award recipients include Ron and Diane Fagen of Fagen, Inc., three-time RFA Chairman Ron Miller, managing director and co-founder of Prisma Advisors, LLC., and Dave Vander Griend of ICM, Inc.

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