GREEN Team Newsletter - Issue #205
Golden Grain Energy Celebrates One Billionth Gallon
February 24, 2015Golden Grain Energy, an ethanol production facility in Mason City, Iowa, recently held a celebration commemorating the production of its one billionth gallon of cleaner-burning, homegrown ethanol. Golden Grain Energy held the event celebrating the monumental achievement with stakeholders and featured speakers Senator Chuck Grassley (R-Iowa) and Iowa Secretary of Agriculture Bill Northey.
“This achievement represents a lot of work from farmer to producer to truck driver. Each stage of production leads to a tremendously beneficial final product,” stated Sen. Chuck Grassley. “Every gallon of ethanol used in transportation increases our energy independence, reduces polluting emissions and adds economic value in rural communities. I’m glad to congratulate Golden Grain Energy on one billion gallons produced. I’m looking forward to the next billion.”
“Congratulations to Golden Grain Energy for reaching this monumental milestone,” stated Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “It’s not an easy road to one billion gallons. Golden Grain survived the commodity boom-bust of 2008, the drought of 2012, and more than a decade of attacks on their product from Big Oil. But the investors, board and hardworking employees of Golden Grain Energy did more than survive – they thrived. They doubled the original size of the plant; they developed new domestic and foreign markets; and they powered the ag economy for 100 miles around the plant. Simply put, hitting the one billion gallon threshold is a true Iowa success story.”
“This remarkable milestone by Golden Grain Energy is a great opportunity to celebrate the tremendous impact this plant and the 42 other ethanol refineries have had in reducing our dependence on foreign oil, protecting our environment and boosting the Iowa economy,” stated Iowa Ag Sec. Bill Northey. “It is important we recognize the local investors who invested millions to build this plant. Thanks to their vision and passion for this industry, billions of miles have been driven in Iowa and across the nation using clean-burning, homegrown renewable fuels.”
“This is a huge occasion for the plant, the staff, and the community as a whole,” stated Golden Grain Energy Chief Operations Officer (COO) Chad Kuhlers. “To the best of my knowledge I believe we are the first single location ethanol plant in the country to reach this production mark, and it couldn’t have been done without the support from the shareholders, community and the great work from our employees over the years.”
To put one billion gallons into perspective, the Environmental Protection Agency (EPA) estimates that the average faucet flows at a rate of 2 gallons per minute. This average faucet would have to flow non-stop for more than 950 years to produce 1 billion gallons.
EPA to Issue Three-Year RFS Proposal This Spring
February 24, 2015As reported by OPIS, Environmental Protection Agency (EPA) Office of Air Quality and Transportation Director Chris Grundler recently told attendees at the National Ethanol Conference (NEC) that the EPA plans to issue proposals for 2014, 2015, and 2016 Renewable Fuel Standard (RFS) targets this spring.
EPA is “sorry … we did not get our work done,” Grundler added. “I know words are cheap, but in this case they are sincere. I get that there are consequences when the government fails to act for producers and obligated parties alike. This simply is not acceptable.”“To me, this is the single most important thing we can do to advance the RFS,” and get the provision back on track, Grundler said.
“For the next few months, we are regrouping,” Grundler continued. “EPA’s goal remains to get the RFS back on track and provide for long-term growth of renewable fuels in this sector,” he said.
“The RFS debate in Washington has become overheated and gotten ugly at times. My hope is that we can find a way to have a civil discourse with all sides of the debate,” Grundler added.
Sen. Ernst Invites EPA Administrator to Iowa to Talk RFS
February 24, 2015Senator Joni Ernst (R-Iowa) recently sent a letter to Environmental Protection Agency(EPA) Administrator Gina 
McCarthy inviting her to visit Iowa to talk about the federal Renewable Fuel Standard (RFS), and “directly engage with the people impacted the most by your regulatory choices.”
In conclusion, Sen. Ernst noted, “It is critical to hear and see how your proposed changes to WOTUS and failure to put forth required levels for the RFS could, and have, impacted farmers, biofuel producers, and all of the important related industries.”In the letter, Sen. Ernst stated, “The U.S. Environmental Protection Agency and its regulatory choices have significant consequences on the lives and livelihood of Iowa’s agricultural industry—as well as many others. Inaction on the Renewable Fuel Standard (RFS) and your efforts to redefine the Waters of the United States (WOTUS) are of great concern to me and the many Iowa citizens who are impacted.”
To read the entire letter, please click here.
Study Shows Ethanol’s Vast Economic Impact
February 24, 2015A study released by the Renewable Fuels Association (RFA) at this year’s National Ethanol Conference (NEC) shows ethanol’s wide-ranging impact on the economy of the U.S. The new ABF Economics study entitled, “Contribution of the Ethanol Industry to the Economy of the United States in 2014,” noted that the ethanol industry had immense job creation, national security, and economic benefits.
In 2014, the study reported that the ethanol industry accounted for 83,949 direct jobs and 295,265 indirect and induced jobs throughout all sectors of the economy. The ethanol industry also added $52.7 billion to the national GDP, $26.7 billion to household incomes, and $10.3 billion in taxes which help stimulate national, state, and local economies.
ABF Economics economist and study author John Urbanchuk noted, “The ethanol industry continues to make a significant contribution to the economy in terms of job creation, generation of tax revenue, and displacement of imported crude oil and petroleum products. The importance of the ethanol industry to agriculture and rural economies is particularly notable. Continued growth and expansion of the ethanol industry through new technologies and feedstocks will enhance the industry’s position as the original creator of green jobs, and will enable America to make further strides toward energy independence.”
RFA President and CEO Bob Dinneen added, “Numbers are powerful. These numbers reflect the vast reach of the U.S. ethanol industry across many sectors of our society. Each of the nearly 380,000 jobs represents a solid, stable income for a parent who can continue to provide for their family, buy groceries, and pay the rent on time. Each of the $10.3 billion spent in local, state, and federal taxes mean improved public services, safe, drivable roads, more teachers for local school systems or greater access to the latest technology and information for students. And, each of the 515 million barrels of oil we no longer have to import, mean less dependence on often volatile countries and a more stable energy future for all Americans.”
A brief overview of the study’s findings shows the ethanol industry in 2014:
- Added $52.7 billion to America’s gross domestic product
- Accounted for 83,949 direct jobs and 295,265 indirect and induced jobs;
- Generated $26.7 billion to household incomes;
- Added $10.3 billion in federal, state and local taxes; and
- Displaced 515 million barrels of oil, the equivalent of $49 billion
To review the entire study, please click here.
Governors: “America’s Farmers Help Meet Our Energy Needs”
February 24, 2015Iowa Governor Terry Branstad and Missouri Gov. Jay Nixon recently submitted a letter to the editor of the New York Times to refute the flawed World Resources Institute report with data and real-world experience.
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| Governors Terry Branstad (left) and Jay Nixon (right) | |
“As governors of two states at the forefront of the nation’s bioeconomy, we have witnessed firsthand the sustainable development of robust and dynamic bioenergy industries,” the governors wrote.
“We see every day the many benefits that stem from bioenergy production — reduced dependence on overseas oil, increased economic activity and investment, new market opportunities for agriculture and forestry, family income growth in rural America, consumer choice at the fuel pump, and cleaner air and water. The experience of our states has shown not only that bioenergy and food production can efficiently coexist, but also that they can thrive together in a sustainable way.”
The governors added, “The past decade has been the most profitable time in the history of American agriculture, partly because of the emergence of a vibrant bioenergy industry. Improved profitability allowed farmers to reinvest in new technologies and equipment that further enhanced productivity and efficiency.
“We recognize the need for future technological advancements and are optimistic that recent high-tech innovations in precision agriculture will continue to meet the future food and energy demands of a growing world population.” The governors concluded, “Our agricultural system can — and will — continue to meet those demands in a way that is environmentally sustainable, socially responsible and economically efficient.”
Currently, Gov. Branstad serves as Chairman and Gov. Nixon serves as Vice Chairman of the Governors’ Biofuels Coalition.
Iowa Ag Secretary Receives Environmental Award
February 24, 2015Iowa Secretary of Agriculture Bill Northey recently became the first state Secretary of Agriculture to receive the National Association of Clean Water Agencies (NACWA) National Environmental Achievement Award for excellence in Public Service.
“It is an honor to receive this recognition from such a distinguished organization that has a long history of working on water quality issues,” stated Sec. Northey. “Our approach has always been to work together with point sources to address water quality, an issue we all care about. This award is an opportunity to highlight the tremendous work that has been done in Iowa and to showcase our leadership role nationally in addressing water quality.”
Northey was selected for this honor for his leadership in establishing and growing the Iowa Water Quality Initiative and for working in a collaborative manner with both point sources and nonpoint sources to improve water quality. More information about the Iowa Water Quality Initiative can be found at www.CleanWaterIowa.org.
Sen. Boxer Encourages EPA Action on RFS to Support Biodiesel
February 24, 2015Senator Barbara Boxer (D-Calf.), Ranking Member of the Environment and Public Works Committee, recently sent a letter to Environmental Protection Agency (EPA)Administrator Gina McCarthy encouraging the implementation of a strong federal Renewable Fuel Standard (RFS) for biodiesel.
She added, “Unfortunately, the agency’s original 2014 proposal would have set levels far below that of the biodiesel industry’s production capability, and the delays in promulgating final rules have harmed the investment expected to flow into both biodiesel and other advanced biofuels industries. Indeed, biodiesel producers in California have seen significant impacts caused by the original proposal and current delays.”In the letter, Sen. Boxer stated, “Despite the biodiesel industry’s continued growth, the agency has not yet set the 2014 RFS volumes and it has indicated it will not do so until later this year. In addition, the 2015 standard for biodiesel has been delayed for over one year, and the 2016 standard should have been set at the end of 2014.”
Sen. Boxer concluded, “Under the RFS, biodiesel volumes can be promulgated independently of the other fuel categories. I urge the agency to issue the 2014 biodiesel volume levels in a manner consistent with actual industry production levels and to ensure that the agency move toward meeting the statutorily prescribed schedule for setting Renewable Volume Obligations (RVO).”
To read the entire letter, please click here.
Buis: The RFS Pays Off
February 24, 2015Growth Energy CEO Tom Buis recently penned an article that appeared in The Hill and argued that efforts to repeal or “reform” the federal Renewable Fuel Standard (RFS) “will only cost consumers at the pump, harm America’s economy, and threaten our energy and national security.”
“Oil companies have rigged the system to block competition from homegrown renewable fuels, and we’re stuck relying on 
unstable foreign oil markets,” stated Buis. “Ethanol production helps us to reduce our dependence on foreign oil. Homegrown ethanol displaces over 1 million gallons of petroleum per day. Throughout history, we’ve witnessed the extreme volatility of oil prices, with unrest in places like Iraq and Ukraine prompting prices to skyrocket at the gas pump here at home. The RFS is our nation’s most successful energy policy in the past 40 years, the only policy to ever have loosened Big Oil’s stranglehold on the transportation fuels marketplace and the only policy that will help us kick our dangerous addiction to foreign oil.”
Buis added, “Big Oil lobbyists and smear campaigns have tried to blame the ethanol industry for high food prices, but those claims are not at all supported by the facts. A 2013 World Bank study showed that crude oil prices are responsible for more than 50 percent of the increase in global food prices since 2004. Ethanol is produced from field corn, only a small quantity of which is used for human consumption, and advanced technologies are allowing it to be produced from agricultural waste. According to the World Bank, the number one cause of food inflation is rising crude oil prices, because it raises the cost of producing, processing, storing and transporting the world’s food.”
Buis concluded, “Over the past decade, the RFS has helped us cut our dependence on foreign oil nearly in half— from 60 percent to 33 percent. It has allowed the United States to lead the world in biofuel innovation, driving the research and development of next-generation biofuels that will further break our dangerous oil addiction. With the RFS opening up the fuel market to new fuel sources, the renewable fuels industry has been able to deliver economic, national security and environmental benefits. We need the Renewable Fuel Standard to break the monopolistic stranglehold of Big Oil and give American consumers the choices they deserve.”
To read the entire op-ed, please click here.
POET Helps Fight Pollution and Deforestation in Haiti
February 24, 2015In a partnership effort with Project Gaia to help fight pollution and deforestation in Haiti,POET recently announced its helping to replace Haitian wood-burning stoves with clean-burning, ethanol-fueled cook stoves.
Today, most Haitians rely on charcoal and firewood to cook their daily meals. Consequentially, the nation has experienced extreme deforestation over the years, and now less than 2 percent of Haiti’s forest cover remains. Additionally, the United Nations estimates that the average lifespan in Haiti is shortened by 6.6 years due to illnesses caused by household air pollution, which results from burning wood and charcoal indoors.
“The vision for this project is clear: to bring clean-burning ethanol fuel to the homes in third-world countries in order to improve the standard of living and drive positive socio-economic change,” stated POET Founder and Executive Chairman Jeff Broin. “For decades, we’ve known ethanol to be a clean, renewable fuel for our automobiles, and I look forward to bringing this same clean, renewable fuel to homes across the globe. With the help of our partners at Project Gaia, Dometic and Novogaz, I know we will be successful in our journey to bring clean cookstoves and clean energy to the world.”
“POET is leading the way in catalyzing a new market in Haiti for household energy. Ethanol offers perhaps the greatest opportunity to revitalize the agriculture sector and offer families a clean and affordable alternative to charcoal,” stated Project Gaia Assistant Director Brady Luceno. “By working with a strong local partner like Novogaz, the first shipment of donated ethanol will lay the foundation for a viable and socially responsible Haitian business to grow.”
The first 6,200 gallons of ethanol cleared Haitian customs on December 31, 2014. POET donated approximately 12,000 gallons of ethanol to jumpstart the project.
NREL Report Confirms Renewable Fuel Trends in 2013
February 24, 2015The National Renewable Energy Laboratory (NREL) recently released its 2013 Renewable Energy Data Book, featuring statistics on renewable energy generation, development, investments, and technology-specific data.
“The 2013 Renewable Energy Data Book is an important resource for policymakers, analysts, and investors worldwide,” stated NREL Energy Analyst Sean Esterly. “Renewable energy trends are displayed in an accessible format for a variety of audiences.”
The report notes 13.3 billion gallons of ethanol was produced in the U.S. in 2013, with the U.S. leading the world, accounting for 57 percent of global production. Brazil, the world’s second largest producer, produced 6.27 billion gallons of ethanol in 2013.
NREL also notes biodiesel was the fastest growing biofuel type in 2013, with U.S. production increasing by 64 percent and global production increasing by 17 percent. The U.S. led the world in biodiesel production in 2013, producing 1.8 billion gallons. Germany was the world’s second largest producer of biodiesel totaling 819 million gallons produced in 2013.
To review the entire NREL document, please click here.
South Dakotan Wins RFA’s E85 “Post Your Price” Contest
February 24, 2015The Renewable Fuels Association (RFA) recently announced at the National Ethanol Conference (NEC) that Scott LeBrun of South Dakota has won its first ever E85 “Post Your Price” contest.
“We are thrilled to name Scott LeBrun as the first-ever ‘Post Your Price’ contest winner,” stated RFA President and CEO Bob Dinneen. “E85 provides a low-cost fuel option to consumers with flex-fuel vehicles, but this past year RFA uncovered many disturbing trends when it came to E85 pricing and availability. We found that Big Oil-branded stations are less likely to offer higher-level ethanol blends than non-branded locations and more likely to use strict contracting language to prohibit or limit consumer choice. We also saw E85 priced suspiciously high in the St. Louis market in what can be seen as an attempt to price the fuel out of the market. These anti-competitive trends cannot stand. Big Oil should not be allowed to continue its market distortion at the expense of consumers. The ‘Post Your Price’ contest yielded timely and accurate information that will be utilized by the RFA to counter Big Oil’s monopolistic practices in 2015.”
In addition to the overall winner, RFA also awarded free E85 for a month to the individuals participating in the contest that submitted pictures with the largest and smallest disparity between the E85 price and the price of regular unleaded gasoline. Michael Scholl submitted a photo of a station in Hartford, Michigan, that had E85 at $1.64/gallon and regular unleaded at $2.89/gallon.
Additionally, Douglas Cochran identified a station in Albany, Georgia, listing E85 at $1.94/gallon and regular unleaded at $1.68/gallon. The price disparity at the Georgia station goes to show there are still marketers not passing through the real savings of E85 to consumers.
ACE Elects 2015 Board Officers
February 24, 2015The American Coalition for Ethanol (ACE) recently announced that its Board of Directors elected its 2015 board officers during its first meeting of the year.
Elected to serve as officers were:
- President – Ron Alverson, representing Dakota Ethanol, LLC
- Vice President – Duane Kristensen, representing Chief Ethanol Fuels Inc.
- Secretary – Dave Sovereign, representing Golden Grain Energy, LLC
- Treasurer – Owen Jones, representing Full Circle Ag Cooperative
Alverson is a corn and soybean farmer and was the founding chairman of Lake Area Corn Processors, LLC (Dakota Ethanol), a 60 mgy ethanol plant and South Dakota’s first farmer-owned ethanol facility.
Kristensen has nearly 30 years of experience in the ethanol industry and since 2004 has served as General Manager of Chief Ethanol Fuels Inc., a 62 mgy plant near Hastings, Nebraska, which is the state’s first dry-mill ethanol production facility. He also serves on the U.S. Grains Council Ethanol “A-team” which develops export demand for U.S. ethanol.
Sovereign farms and is the founding chairman of Golden Grain Energy, LLC, a 120 mgy ethanol plant in Mason City, Iowa. He also owns Cresco Fast Stop, a convenience store that offers E15, E30 and E85. Sovereign was instrumental in developing the Biofuels Mobile Education Center, a 45-foot traveling trailer designed to educate the public about biofuels. He also serves on the board of Absolute Energy, a 115 mgy ethanol plant in St. Ansgar, Iowa.
Jones is a farmer, rancher, and cooperative business leader who was the driving force behind the installation of the first blender pump in the nation in 2006 at Four Seasons Cooperative(later renamed Full Circle Ag) in Britton, South Dakota.
