EPA delays decision on whether to reduce ethanol in gas

The federal government’s new threshold for the amount of ethanol blended into America’s gasoline supply was already 10 months overdue. So officials have gone ahead and delayed the decision further, into 2015.

The Environmental Protection Agency announced Friday that it would defer an announcement on the renewable fuel standard (RFS), which stipulates that ethanol should make up 10 percent of gasoline.

(The Des Moines Register has some of the day’s best reporting on this issue. Agriculture.com also has a good explanation of the granular details.)

The standard, first established under a 2005 law, calls for the amount of renewable fuels in gasoline to progressively increase each year. But the law was written at a time when demand for gasoline was expected to keep going up. Slackened demand around the world, combined with stepped-up U.S. production, has dropped domestic prices below $3 a gallon.

Based on that reality, the EPA recommended, in November 2013, that the amount of corn ethanol in the should be reduced, from 14.4 billion gallons a year to 13.01 billion gallons.

This upset the corn growers and ethanol producers, most of them clustered in the Midwest and Great Plains. They said the delays deterred investment in biofuels, and even the oil companies complained that the regulatory vacuum created too much uncertainty in the fuels market.

The EPA’s recommendations had not been finalized. They had been sent to the White House Office of Budget and Management for review, but that office “ran out the 90-day clock to review the agency’s proposed standards, which for the first time signaled a retreat by the EPA on the percentage of biofuels that must be blended,” The Hill reported.

Since the EPA was already so late in setting the 2014 guidelines, the agency “intends to get back on track next year, though details on how it would do that weren’t available Friday,” The Wall Street Journal wrote. The EPA statement said: “Looking forward, one of EPA’s objectives is to get back on the annual statutory timeline by addressing 2014, 2015, and 2016 standards in the next calendar year.”

The reaction among the affected parties was mixed Friday. The WSJ tries to untangle the various interests:

The debate over the biofuels mandate triggers strange bedfellows, with trade groups representing the oil and refining companies, car manufacturers, livestock and even some environmental interests all opposed to the policy for different reasons. Proponents of the standard include the corn industry, which is the most common way ethanol is produced, and producers of ethanol.

The EPA’s announcement gave cautious hope to ethanol-industry leaders that the agency will fundamentally rethink how it proposes the annual biofuels levels. The draft 2014 biofuels levels, which the agency proposed almost a year ago, were much lower than the ethanol industry lobbied for.

“I am truly pleased that they’re pulling away from a rule that was so bad,” said Bob Dinneen, president and CEO of the Renewable Fuels Association, a trade group representing biofuels companies. “But I recognize as well we have to work with the agency to try to figure out a path forward that everybody can live with.”

Executives in the oil-refining industry criticized the delay, and said it was evidence the renewable-fuel standard was itself inherently flawed and should be repealed.

“Each year is dependent upon the previous year, and to some extent dependent upon the following year,” said Charlie Drevna, president of the American Fuel & Petrochemical Manufacturers, a trade association representing the nation’s refining industry. “The problem is, every year EPA is late in getting this out, it exacerbates it. They’re never going to be able to catch up.”

 

Are the United States and Saudi Arabia conspiring to keep oil prices down?

As my colleague Jordan Weissmann wrote Tuesday, there are a number of factors behind the continuing global slide in oil prices, including North American production, increased energy efficiency, Europe’s economic stagnation, and China’s slowing growth. But a big one is Saudi Arabia, which, to the dismay of fellow oil -producing nations, has resisted pressure to cut production in order to stabilize prices.

Ahead of an OPEC meeting in Vienna next week, there are some contradictory theories about why Saudi Arabia is content to keep oil cheap for the time being. One is that the Saudis want to nip the U.S. oil boom in the bud. American shale oil is more expensive to produce and needs high prices to remain competitive. As one analyst put it when the kingdom cut prices for U.S. customers earlier this month, “the Saudis have basically declared war on the U.S. oil producers.”

Read more at: Slate

Oil, ethanol groups say EPA delay hurting their industries

U.S. ethanol producers and the oil industry responsible for mixing the renewable fuel into the gasoline supply rarely agree on anything.

But the two foes say the failure of the Environmental Protection Agency to finalize how much ethanol should be mixed into the country’s motor fuel supply in 2014, more than a year after the regulator first issued its proposal, has created uncertainty and hindered the ability of the free market to work.

“The market is kind of frozen right now because the EPA hasn’t responded,” said Bob Greco, downstream director with the American Petroleum Institute, a trade group representing more than 550 oil and natural gas companies. “The EPA, because of the way (the Renewable Fuel Standard) is structured, moves markets by making these decisions. You’ve got billions of dollars of investments threatened.”

In November 2013, the EPA proposed reducing ethanol produced from corn in 2014 to 13.01 billion gallons from 14.4 billion gallons initially required by Congress in the 2007 Renewable Fuel Standard, a law that requires refiners to buy alternative fuels made from corn, soybeans and other products to reduce the country’s dependence on foreign energy.

Read more at: Des Moines Register

NYT: Keystone vote solved nothing, provided no new insights

The U.S. Senate failed, by one vote (as some observers predicted), to advance legislation demanding that President Obama approve the Keystone XL pipeline.

New York Times opinion-page writer David Firestone says the debate surrounding the vote — 59 senators approved, including 14 Democrats, leaving the measure shy of the 60 “yeas” needed to avoid a filibuster threat — was a “pointless” one that played into Republican hands:

The bill to approve the pipeline failed by one vote, and even if had passed, it would almost certainly have been vetoed by President Obama. The debate provided no new insights into the value of the pipeline, or its liabilities, and it changed no one’s mind.

As for why Democrats sought to push their own pro-Keystone bill during a lame-duck session before Republicans take over as the majority in the Senate in January, The Times opines that it amounted to a last-ditch and probably futile effort to save Sen. Mary Landrieu’s job. The Louisiana Democrat is competing against Congressman Bill Cassidy, who got his own pro-Keystone bill approved in the House, for Landrieu’s seat in a runoff election next month.

The Times’ coverage of Tuesday’s approval of the Senate measure includes a section on the lengths Landrieu went to convince colleagues to pass the measure:

At the lunch, Ms. Landrieu made an “impassioned plea” that at moments verged on tears, according to a Democrat. Ms. Landrieu, according to the Democrat, focused part of her pitch on how the legislation would help her back home, though at one point she argued that Democrats should send the bill to Mr. Obama’s desk because it would help him politically by giving him something to veto.

So what happens next? The president has the final say on whether the 1,179-mile pipeline extension gets built, regardless of what happens in Congress. But the next Congress could force him to either approve the bill (possibly after trading for something from Republican leadership) or veto it.

A Q&A in Wednesday’s NYT hints that the new, more heavily Republican Senate that convenes in January “may be able to muster a nearly veto-proof majority,” considering their ranks will swell from 45 to 54 (assuming Landrieu loses). But they need 67 votes to override a presidential veto.

Redlands to offer CNG /LNG fueling stations in town

Residents and businesses in need of Compressed Natural Gas (CNG) for their vehicles will have an increased ability to fill up in town.

The city has added new Compressed Natural Gas fuel dispensers at its corporate yard to allow up to four alternative fuel vehicles to fill up at the same time.

“There’s not a whole lot of stations around that you can get that fuel source,” said Councilwoman Pat Gilbreath, adding that the availability of the fuel stations give residents more options for the types of vehicles they can purchase.

Compressed Natural Gas is a clean burning alternative fuel that helps reduce carbon emissions and costs less than fossil fuels, according to a city news release.

Read more at: Redlands Daily Facts

‘Pump’ No More: Taking America off Oil

Rebecca Harrell Tickell joins us to discuss ‘Pump,’ the critically acclaimed new documentary film she produced with her husband, Josh Tickell. Made with consumers in mind, the film shows Americans how many other alternatives to oil exist. Kicking the American addiction, Tickell says, is possible. She’ll tell us about meeting Tesla’s Founder, Elon Musk and Actor Jason Bateman’s role in narrating her film.

Listen to the Radio Interview at: TLV1

Can algae be the next biofuel?

The lure of the oceans has always had a special appeal for advocates of biofuel. The vast reaches of the deep speak of a promise that unlimited amounts of space will be able to bring forth completely sustainable forms of energy.

“Two-thirds of the globe is covered with water,” says Khanh-Quang Tran, a Norwegian researcher who has published papers on the possibility of growing algae as a biofuel on an industrial basis. “If we used only a tiny portion of that space, we’d have enough to supply ourselves with all the fuel we needed.”

Of particular interest to researchers is one species, laminaria sacceyarina (“sugar kelp”), which grows along the coast of many countries, including Scandinavia. It is the “seaweed” that seems to be a flower but is actually all one undifferentiated cellular structure that takes on various forms in competing for sunlight. As the name implies, it contains lots of sugar – three times as much as the sugar beet. Scandinavian scientists have been especially intent on harvesting this plant for food and fuel use.

“It’s actually regarded as a nuisance, since it grows everywhere and clogs the beaches,” says Fredrik Grondahl, a researcher at the KTH Royal Institute of Technology in Sweden who heads the Seafarm project. “But it absorbs nitrogen out of the water, effectively as a wastewater treatment plant. It’s regarded as an environmental problem, but it’s actually a valuable resource.”

The big question will be this: Can a weed that grows so prolifically in the sea be domesticated so that it can grow in large quantities under controlled conditions?

Sweden and Norway seem to have taken the lead on this project, mainly because of their long coastlines, where the algae grows intensely in a cold climate. The Seafarm project involves  growing underwater algae farms on ropes. The team collects excess algae from the Baltic Sea and cultivates it as food and fuel. One technique is called the “sporophyte factory farm.” The algae spores are sown onto ropes. They sink and grow in the sea. In about six months, they have grown onto the ropes and are harvested and processed on land covering two hectares. From there it can be converted to eco-friendly food, medicine, plastics and energy fuels such as methanol. The city of Trelleborg, where the farm is located, estimates that 2.8 million liters of fuel can be extracted from its algae resources.

Kahnh-Quang Tran of Norway has been following another line of research. He mixes a slurry of kelp biomass and water and heats it rapidly to 350 degrees Centigrade. Tran says the fast hydrothermal liquefaction gives him a product that is 79 percent bio-oil. A similar experiment on the U.K. was only able to produce 19 percent oil, but Tran claims that the rapid heating improves the process tremendously. “What we are trying to do it mimic the natural process that produces oil,” he said. “Whereas it takes geological time in nature to produce oil, we can do it in a matter of minutes.”

Tran is now looking for partners who can help him move up to an industrial scale.

Another plan developed in France and the Netherlands is to line highways with algae pools in the hope that they will immediately absorb the carbon exhaust that comes from automobiles. This will remove CO2 from the atmosphere and recycle the fuel as well. An experimental installation was demonstrated at the summer garden festival at Genève Villes et Champs this year.

Another country that is experimenting with algae is Australia. This October, the Muradel Corporation opened a $101. 7 million demonstration plant in Whyalla designed to produce 30,000 liters of green crude every year. The company is employing its Greeen2Black technology, designed to produce a continuous stream of environmentally sustainable crude equivalent.

Muradel CEO and University of Adelaide Associate Professor David Lewis said if the demonstration plant were successfully scaled to a commercial plant, it would produce 500,000 barrels of refinable green crude a year by 2019 – enough petrol and diesel to fuel 30,000 vehicles for a year. The planned 1,000-hectare commercial plant would create at least 100 new skilled jobs in the Whyalla region.

“This is world-leading technology which can be scaled up exponentially to help steer our fossil fuel-dependent economy toward a more sustainable future,” Lewis said.

Not everyone is enthusiastic about algae. “It will take anywhere from 5 to 15 years to produce on a scale that would be meaningful to the nation’s every needs,” says Jim Rekoske, general manager of Honeywell’s UOP division. He likened it to trying to maintain the water balance in a fish tank.

“You have to have just the right temperature and the right amount of carbon dioxide to get these growth spurts,” he said. Algae farms are also very susceptible to invasive species and have to be monitored constantly. Still, an acre of algae can ideally produce 15,000 gallons of biofuel per year, as opposed to only 420 gallons per acre from corn ethanol. “We could replace all the diesel we consume now on half of 1 percent of our current farmland,” says Douglas Henston, CEO of Solix Biosystems of Fort Collins, Colo. Solix is supplying the military with biofuels at a whopping $33 per gallon.

So, will algae make the same progress in the United State that it seems to be making in Sweden and Norway? American researchers may take up the challenge as well. The long coastal lines are not there to tempt us, but research breakthroughs may finally make algae biofuels more practical and economically viable everywhere.

New Yorkers, brave the rain and check out PUMP

It’s Monday night, and it’s cold and raining. But if you live in Queens, how about some enlightened discussion about oil addiction to warm your soul?

The Sierra Club’s New York City group is screening the Fuel Foundation-produced documentary PUMP tonight at 7 p.m. at the Alley Pond Environmental Center, 228-06 Northern Boulevard in Douglaston. Check the center’s site for driving and public-transportation directions.

The club is asking for donations: $3 for members of Sierra Club or Ashley Pond, $5 for non-members. Refreshments will be served.

Thelma Fellows, who chairs the outreach committee for NYC Sierra Club, says she saw PUMP when it was playing in Times Square in September. Its core message — that allowing replacement fuels like ethanol and methanol to compete with gasoline at the pump would save consumers money, create jobs, strengthen the nation and improve health and the environment — resonated.

“This opens people up to the idea that we don’t have to be so beholden to OPEC,” she said.

She added that she hopes to show the film elsewhere in New York, including Manhattan and outer boroughs like Staten Island.

PUMP also is playing in Boulder, Colo., and St. Johnsbury, Vt., this week. For theaters and showtimes, visit PUMPTheMovie.com.

To see what critics thought of PUMP, directed by Josh and Rebecca Harrell Tickell, check out this post. Read viewer-contributed reviews at Rotten Tomatoes.

If you’d like to show the film at your home, college or group, contact Fuel Freedom’s Gina Schumann at [email protected].

Vote count: Keystone XL backers one shy in Senate

There are dueling bills in Congress that would clear the way for construction of the Keystone XL oil pipeline in the United States.

The House already has passed a bill, sponsored by Republican Bill Cassidy, who’s a candidate for Senate in Louisiana.

The Senate has its own pro-KXL bill, sponsored by Democrat Mary Landrieu, the other candidate for Senate in Louisiana. They’ll square off in a runoff election Dec. 6.

Landrieu has 59 supporters for her bill, but she needs 60 to prevent it from being stalled by a filibuster threat.

A vote is scheduled for Tuesday.

Bloomberg has more on the horse-trading going on over the Senate bill.