Ethanol Producers and Consumers

Another great EPAC Ethanol conference will be held June 13-15 in historic Helena, Montana. The conference titled "Energy, Parks, & Clean Cities, Gemstones in the Treasure State" will feature great speakers and current topics. While Montana is known as the Big Sky country, it was first called the Treasure state because of the many minerals and precious stones that were mined in the state. In addition to the more tangible minerals and gemstones, Montana is blessed with other treasures, including Yellowstone and Glacier National Parks. EPAC has participated as a stakeholder in the efforts to keep a clean environment in the Parks through the use of clean fuels. Some conference sessions will focus on the vital role of National Parks and the Clean Cities program to create awareness of Ethanol and biodiesel.

Other sessions of the conference will feature new and improved methods to process and utilize clean renewable Ethanol and Biodiesel. In addition, there will be speakers on the fuels performance and the marketing of those fuels. One panel will address the myths and realities of Ethanol production and use and the latest energy balance study. New plants are coming to the north-western region of the nation, and industry officials will report on progress being made to increase the gallons of clean fuels produced in the region.

Speakers at this time include Roger Conway, USDA; Mike Derickson, CHS; Jim Evanoff, Yellowstone Park; Ron Fagen, Fagen Inc.; Jim Glancey, Wyoming Ethanol; Howard Haines, MT, DEQ; Joe Jobe, National Biodiesel Board; Larry Johnson, Delta T; Phil Lampert, NEVC; Beverly Miller, Clean City; Ernie Oakes, Clean Cities; Kim Penfold, Seattle Energy Office; Jim Redding, Aventine Renewable Energy; Lou Sommerfield, Glacier Park; John Urbanchuk, LECG, LLC.

This is the most affordable Ethanol conference around, with registration at $140.00 with early registration of $105.00 if paid prior to May 23.

A Trade Show will be offered, with booth space available for $255.00 and includes a conference registration. Call Mike Allen at 406-594-5119 or 406-442-7703 to reserve your space.

An EPAC conference always includes fun activities. Take advantage of a plane fare that includes a Saturday night stay and arrive in time for EPAC's Ethanol Golf Tournament on Sunday or to go digging for valuable gemstones that include sapphires and garnets. The "Spokane Bar Sapphire Mine and Gold Fever Rock Shop" will provide a tour of the dig area and a pail of concentrate from the gemstone mine. You will be shown how to screen the concentrate and you get to keep the gems.

The kickoff reception Sunday evening is at the Great Northern Carousel Park and Ice Cream Parlor, where you might be the lucky person to catch the brass ring. Awards will be presented during the reception, with a special award going to Senator Max Baucus, a long-time Ethanol supporter.

Monday evening, attendees can explore the "Gates of the Mountains" on the Missouri River. Lewis and Clark explored the area almost 200 years ago, and were struck by the beauty of the area. Meriwether Lewis wrote in his journal that the limestone walls that rise from the river are "the most remarkable clifts (sic) that we have yet seen". An excursion boat will carry guests up river to the Meriwether Campground, where the Lewis and Clark expedition stopped overnight. A barbeque dinner will be served to the guests who sign up for this optional event.

	Major airlines that fly directly into Helena include Northwest, Delta and Horizon. EPAC looks forward to seeing you at the 14th Annual EPAC Ethanol Conference. Watch the EPAC newsletter or this web site for additional information. Room reservations can be made by callingthe Great Northern Hotel at 406-457-5531 and asking for the EPAC room block.
http://www.bestwestern.com/helenagreatnorthernhotel

EPAC Visits Washington Offices

	Members of EPAC were in Washington, D.C. in late January to visit with Congress about the energy bill and to make calls at agencies and other offices. The visits were somewhat hampered by bad weather in the D.C. area but a number of contacts were made. Mike Allen, Linda Nielsen and Shirley Ball, made the trip to the nations capitol and spent three and a half busy days in meetings.
Senator Max Baucus was in a hearing about BSE, and took time from the hearing to meet with EPAC members, who talked with him about the energy bill, the transportation bill and the need for funding for E-85 infrastructure.		Senator Conrad Burns welcomed the EPAC members to his office to discuss the energy bill, the need for a renewable fuels standard, and other matters critical to Montana.

Gerlach Leads Promotions

by Sonja Hillgren of Farm Journal

For a human spark plug, Tim Gerlach is an unassuming fellow. One reason for his modesty is that his state's success is built on teamwork. To promote E-85, the mix of 85% Ethanol and 15% gasoline, Gerlach coordinates efforts by Minnesota farmers, Ethanol producers, the National Ethanol Vehicle Coalition (NEVC), automakers and dealers, state officials and the U.S. Department of Energy's Clean Cities program. The result is that Minnesota has 90 locations that sell E-85, roughly half of the total nationwide. Another explanation for Gerlach's modesty: There remain about 2,400 service stations in Minnesota to convert.

I began thinking about this embryonic success while worrying that enthusiastic farmer-investors in Ethanol plants are in danger of boosting supplies beyond demand, whether or not an energy bill is enacted. So it seems to me that farmers and their families ought to do everything possible to spur grass-roots demand for E-85.

Gerlach, who handles outdoor air programs for the American Lung Association of Minnesota, has a blueprint that works. County and state farm groups, FFA and 4-H chapters, local service organizations and committed individuals can follow his lead.

The first step is to buy flexible-fuel vehicles (FFV) that can run on either gasoline or E-85. Made by Ford, General Motors, DaimlerChrysler, Mazda and Isuzu, these vehicles number about 3 million so far.

Then ask local auto dealers to promote these vehicles. "The smart dealers are starting to tell their salespeople to use E-85 as a marketing tool," says Gerlach, who has been driving an FFV Ford Taurus since 1997.

When you approach service stations to sell E-85, offer to pump and promote the fuel with its introduction. Minnesota Corn Growers Association members have been effective ambassadors at service stations that promote E-85 for 85¢ per gallon. For stations and E-85 advocates, the NEVC (www.e85fuel.com) produces materials that explain how to convert fuel equipment.

Enlist Ethanol producers. In Minnesota, the task was made easier when Chippewa Valley Ethanol Co., Marathon Ashland Petroleum LLC and C&N Ethanol began blending and marketing E-85.

Seek grants from farm organizations, nonprofits, and local, state and federal government to help with public education.

Think of unique promotions. Champion ultra-marathoner Tom Andrews ran 500 miles from Fargo, ND to the Minnesota Capitol in St. Paul to promote E-85. And, advocates installed an interactive E-85 kiosk in the Minneapolis-St. Paul airport. "We keep pushing E-85 ahead here but are looking for other states to do the same. We don't want Minnesota to be an E-85 island," says Gerlach (tim.gerlach@alamn.org).

Minnesota E-85 Update
. . . from Tim Gerlach
* The new Shell Super Express on Hwy 75 & School Blvd in Monticello, MN announced the official opening of Feb. 22. This project represents the 2nd E-85 station in the Monticello area, and the new outlet provides easy access from I-94. Customers will be met by new futuristic-looking Gilbarco Eclipse dispensers.

* Freeborn County Cooperative announced TWO new E-85 outlets will soon join their existing Clark Street, Albert Lea, MN station. By May 1, Alden (Alden exit off I-90) and Brownsdale (Brownsdale exit off I-90) will both convert fueling equipment to dispense E-85 to their customers.

* Holiday Companies announced the Highway 8, Forest Lake, MN, Stationstore #294 will begin selling E-85 soon. This outlet is Holiday's second E-85 site in the Forest Lake area - and it will serve motorists traveling between I-35 and the scenic Taylors Falls, WI, area.

* St. Cloud's E-85 station will soon have a new & improved look. Federated Co-op's St. Cloud Cenex C-Store began selling E-85 in the mid-1990s when only a few FFVs were on the road - and their dispenser was set behind the store. As E-85 awareness and use have grown, the Co-op now feels E-85 should be moved to the front island to be more user-friendly for their retail and fleet customers. The project should be completed by about May 1.

Mike Allen Joins Epac Staff

With the increase demands on the EPAC office, Mike Allen has been named as Executive Assistant of EPAC. As Executive Assistant, Mike will help with all facets and areas that EPAC is involved in.

Mike is already the 2004 EPAC conference coordinator for the 14th Annual Conference to be held in Helena on June 13-15, 2004. Mike's background is in the wholesale petroleum business. He owns and operates the family business, Allen Oil Company, in Helena, Montana. President of Allen Oil since 1994, Mike manages the operations of the business, which include the sale of diesel, gasoline, lubricants and greases as well as bio-diesel and Ethanol. Allen Oil installed the first E-85 pump in the State of Montana in 1998 and it is still in operation today.

An active promoter of Ethanol, Mike has served on the board of directors of EPAC since 1994 and was named as the American Coalition for Ethanol (ACE) "Grassroots Award" winner in 1999. He has assisted EPAC in their educational visits to Washington D.C. on numerous occasions and has been the EPAC liaison to the Montana Legislature for the last three sessions. He recently represented EPAC at the National Ethanol Vehicle Coalition meeting and was elected to the (NEVC) Board of Directors. Mike has three boys (who can be seen at many Ethanol and EPAC functions!) with his wife Lynette. He is active in the Helena Communityin many different areas. Mike will work with Shirley and the board to further the interests of EPAC and Ethanol. He can be reached at 406-594-5119 or mikea@allenoilcompany.com.

WPMA & Convenience Store Expo

EPAC, in coordination with eight other organizations, was an exhibitor at the Western Petroleum Marketers Expo in Las Vegas February 17-19, 2004. As in previous years, we combined efforts with Wyoming Ethanol, American Coalition for Ethanol, Chief Ethanol, Aventine Renewable Energy, National Ethanol Vehicle Coalition, Renewable Fuels Association, Governors Ethanol Coalition and Ford Motor Company.

Managing the new millennium was the theme for this years expo and they had an outstanding tradeshow lineup, seminars and workshops. The host hotel was the Mirage with plenty of entertainment available.

The Trade Expo is a very successful event and very well attended. It gives us the opportunity to speak to the smaller petroleum marketers about new developments in renewable energy and to recognize the added benefits to petroleum suppliers and convenience store businesses.

Thanks to Glenn, Ron and Mike for sharing the workload. We have made this event work for us in the past and feel it is still one of the shows to attend to tell our story.

We appreciate the support of all the sponsors.

Greenhouse Gas Emissions
According to the latest figures from Argonne National Laboratory, the use of Ethanol-blended fuels reduced carbon dioxide-equivalent greenhouse gas (GHG) emissions by approximately 5.7 million tons in the United States during 2003. This reduction is equivalent to removing the annual greenhouse gas emissions of more than 853,000 cars from the roads.

Ethanol-blended fuels reduce vehicular emissions of carbon dioxide, methane, and other gases that contribute to global warming. According to a 2003 study by the Pew Center on Global Climate Change: "replacement fuels offer the greatest promise for reducing transportation sector GHG emissions" over the next 15 years. Replacement fuels, like Ethanol, are alternative fuels that can be blended with petroleum fuels and, therefore, utilize the existing gasoline infrastructure. The Pew Center concluded: "Ethanol produced from corn in the United States reduces full cycle GHG emissions by 30% compared to gasoline."

This reduction is due, in part, to the "carbon cycle," whereby much of the carbon dioxide released when Ethanol-blended fuels are used is reabsorbed by biomass plants, like corn, during growth. These biomass plants provide the feedstocks for Ethanol production.

The Federal Gas Tax Exemption For Ethanol Blends
by Larry Johnson

The $0.053 exemption for a 10% Ethanol blend is equivalent to providing a $0.53 per gallon "equalization" payment that allows blenders to pay $0.53 more for pure (neat) Ethanol than the wholesale "Rack" price of gasoline, and retain the same margins. The federal gasoline tax is $0.184 per gallon of gasoline and the tax on a 10% Ethanol blend is $0.131 per gallon.

In other words: a gasoline retailer collects the same gas tax (18.4¢/gallon) from the consumer at the dispenser, regardless of whether the gasoline contains Ethanol. The difference is that retailers only have to pass on 13.1¢ per gallon to the federal government, when the gasoline contains 10% Ethanol. This tax exemption is pro-rated at two other blend levels, 5.6% Ethanol and 7.8% Ethanol. These levels are significant because they represent the blend levels of Ethanol that provide 2.0% and 2.7% oxygen; the levels required by the clean air act for non-attainment areas for ozone and CO2 respectively.

Example: Retailer collects federal gas tax at the dispenser of $1.84 for each 10 gallons of gasoline sold. If the gasoline is a 10% Ethanol blend, he is selling nine gallons of gasoline and one gallon of Ethanol and only has to pass on $1.31 to the Federal Highway Trust Fund. This transaction leaves him with $0.53 in his pocket. He can then pay $0.53 more for a gallon of Ethanol to blend with the next nine gallons of gasoline, yet retaining the same profit.

Octane value is another marketplace advantage for Ethanol that the consumer never sees because it is not reflected in the retail price. Ethanol has a blending octane rating of about 113 octane and when blended with gasoline, increases the octane of the blend from 2-3 octane numbers, thus moving it up one grade and substantially increasing its value.

Most gasoline retailers offer three grades of gasoline, with the most significant difference between the grades, being the octane value posted on the dispenser. The three grades usually consist of: 87 octane unleaded, 89-90 octane midrange and 91-93 octane premium. Each grade improvement usually commands a price increase of 5-7¢ above the next lower grade.

When 10% Ethanol is added, the octane value increases by one grade and the sale price to the consumer increases from 5-7¢ per gallon. Therefore the octane value for Ethanol is actually an additional 50-70¢ per gallon, a value that is never passed on to the consumer.

Updated Ethanol Guideline Manual Available

The Renewable Fuels Association Technical Committee recently updated the "Fuel Ethanol-Industry Guidelines, Specifications, and Procedures" manual. The document is a compilation of the key technical aspects of fuel grade Ethanol use based on the collective experience and expertise of RFA member companies. The purpose of this document is to serve as a condensed technical reference for Ethanol producers, Ethanol blenders, and other interested parties.

The manual can be found on the RFA webpage at: www.ethanolrfa.org/pdf/RFA960501.pdf

Study Finds Ethanol More Affordable, Practical Than Hydrogen

While many federal and state agencies are focusing on how to transform the United States to a "hydrogen economy," a new report by David Morris, vice president of the Institute for Local Self-Reliance (ILSR), concludes hydrogen is too expensive and would reduce oil consumption much less and more slowly than focusing on Ethanol-fueled hybrid electric vehicles (HEVs).

The report, "A Better Way of Getting From Here to There: A commentary on the hydrogen economy and a proposal for an alternative strategy," notes hydrogen's major shortcomings -- astonishingly high costs, low overall energy efficiency and a reliance on nonrenewable fuels.

"For a hydrogen economy to have any impact, the nation would have to change virtually every aspect of its energy system, from production to distribution to the design of our gas stations and our cars," wrote Morris, who has advised and consulted with the Energy Departments of Presidents Ford, Carter, Clinton and George W. Bush.
"Why spend billions of dollars over the next 20-25 years to completely redesign our transportation system from the ground up when we could build a high-efficiency, Ethanol transportation system for a fraction of the cost and time?" he said.

The report notes that the use of hybrid electric vehicles (HEVs) by itself could reduce liquid fuel consumption by 30 to 50%. Expanding the electric-only driving capacity of HEVs' electric battery system could reduce liquid fuel consumption by another 30 to 40% and allow the vehicle to run off of renewable electricity. The dramatically reduced liquid fuel consumption that would result would enable the building of an Ethanol highway.
The report notes that Ethanol is made from sugars. "A sugar economy makes more sense than a hydrogen economy," said Morris.

Several million vehicles like the Ford Taurus already are capable of running on Ethanol as well as gasoline. The additional cost for car companies to make a flexible fueled vehicle is about $150, while the added cost of making a fuel cell car runs into the tens of thousands of dollars.

"On cost alone, an HEV transportation strategy, with cars that run on Ethanol, is far superior to a hydrogen fuel cell strategy," said Morris.

The report can be found at: http://www.ilsr.org

ILSR Ethanol Economy Fact Sheet

* We can replace 10% of our transportation fuels with Ethanol 10 to 25 years before replacing a similar amount with hydrogen, with nonew investments in redesigning cars or gas stations or energy deliverysystems.

* The current cost of hydrogen is $4-8 per gallon of gasolineequivalent (gge). The wildly optimistic federal goal is $2.65 per gge by2015. The current cost of Ethanol is $1.50-$2.00 per gallon.

* The current cost of converting a gas station to Ethanol is $50,000. Thecurrent cost of converting a gas station to hydrogen is over $600,000.

* The current cost of modifying a conventional car so that it can run on100% Ethanol is $160. The current cost of a fuel cell car is $1million. The most optimistic projection for the increased cost of afuel cell car in 2015 is $10,000.

* A sugar-based economy can have beneficial worldwide ramifications.Today agriculture is one of the most contentious issues in tradenegotiations because farmers are competing with farmers. An economywhere fuels and industrial materials are made primarily from plantsallows farmers to cooperate to meet domestic demand.

EPAC Visits Department of Energy

Pictured from left, Mike Allen, Larry Russo, Todd Werpy and Shirley Ball. Larry, who recently joined the staff at the DOE, has been involved in Ethanol projects for many years, and is a charter member of the OFEC (Old Fogies Ethanol Coalition)	At the Department of Energy, EPAC members had a good visit with Shelley Launey, who is in charge of the Clean City program. EPAC is a stakeholder in the Yellowstone area Clean City organization, and EPAC members regularly attend the Clean City conferences.

Sustainable Energy Coalition Opposes Budget

. . . from Sustainable Energy Coalition newsletter

The Sustainable Energy Coalition, a coalition of over 70 national and state business, consumer, environmental, and energy policy organizations, founded in 1992, has vowed to work to reverse the reductions in the White House's Fiscal Year 2005 (FY'05) budget request for renewable energy and energy efficiency programs.

The Administration has proposed cuts totaling $29 million in the U.S. Department of Energy's energy efficiency and renewable energy (EE/RE) programs -- reducing funding levels to $1,252 million in FY'05 from $1,281 million in FY'04. While the agency's overall EE/RE budget is reduced by 2.3%, significant increases in funding for weatherization (up $63 million) and hydrogen (up $13 million) mask far deeper cuts in a number of core programs. These include solar (cut $3 million), biomass/biofuels (cut $15 million), vehicle efficiency technologies (cut $23 million), distributed energy resources (cut $9 million), industrial efficiency technologies (cut $44 million), and the Federal Energy Management Program (cut $5 million). Funding levels for other programs such as geothermal, wind, and hydropower remained essentially flat notwithstanding cost increases due to inflation.

Cuts in funding for sustainable energy programs were not limited to the Energy Department. For example, at the U.S. Department of Agriculture, the White House is proposing only $10.8 million for the Sec.906 Renewable Energy & Energy Efficiency Grant & Loan Program although the mandatory funding level is $23 million. Similarly, the White House is proposing to provide only $15.5 million of the mandatory $40 million for USDA's "Value-Added" grants program which provides funding for new uses - including renewable energy - for agricultural products.

According to the Sustainable Energy Coalition, the American people have repeatedly stated their preference for
energy efficiency and renewable energy technologies over status quo fossil and nuclear industries. There is solid rationale behind their preferences.

Investments in energy efficiency and renewable energy programs offer a cost-effective way to:

* create new basic domestic industries and high-tech manufacturing and operations jobs,
* reduce energy imports,
* improve national, homeland and energy security,
* improve electrical grid reliability - particularly on the heels of last August's blackout,
* provide environmental and health benefits by curtailing the production of greenhouse gases and other pollutants from fossil fuels, and
* retain world leadership in advancing sustainable energy technologies which is rapidly shifting from the United States to other nations in Europe and Asia.

The Sustainable Energy Coalition recognizes the pressures on the federal budget caused by the large budget deficit, the war in Iraq and the weak economy. Accordingly, since its founding in 1992, the coalition has urged that limited energy research and development funds not be invested in polluting energy technologies, instead focus on accelerating research and more widespread utilization of proven clean energy technologies that have the greatest potential to reduce energy imports, address looming natural gas supply shortages and price increases, and reduce harmful emissions polluting the air and water and changing the earth's climate.

The Sustainable Energy Coalition has called upon the U.S. Congress and the White House to move towards doubling the level of federal support for sustainable energy programs over a five-year period and provided specific budget recommendations beginning with FY'05.

Governor Pawlenty Elected Vice Chairman Of Multi-State Ethanol Coalition

Recognizing Minnesota's history of leadership and Governor Tim Pawlenty's commitment to the development and growth of the Ethanol industry, the Governor's Ethanol Coalition (GEC) recently elected Governor Pawlenty as 2004 vice chairman. According to GEC rules, Governor Pawlenty will take over as chairman of the organization from Illinois Governor Rod Blagojevich in 2005.

"Ethanol is one of the real success stories of our farm economy," Governor Pawlenty said. "In addition to providing us with a domestic source of clean, renewable energy, our Ethanol industry boosts the economy in Greater Minnesota through stronger corn prices and hundreds of good-paying jobs."

The goal of the GEC is to promote production and use of Ethanol as a tool for boosting the economy, cutting air pollution and reducing America's dependence on imported oil. Since its creation in 1991, the coalition has helped shape regional and national policy related to the development of Ethanol. Minnesota is a charter member of the organization, which includes members from 29 other states as well as Puerto Rico, Sweden, Canada, Mexico and Brazil. Governor Pawlenty was nominated for the position and voted in by GEC members.

Minnesota has 14 Ethanol plants, 11 of which are farmer-owned. These plants have the capacity to produce 400 million gallons of Ethanol. Ethanol production adds more than $200 million in value to Minnesota's corn crop each year, and the plants provide more than 700 jobs in greater Minnesota. In addition, the MDA estimates the business activity created by the Ethanol industry supports nearly 4,000 jobs around the state.

"Minnesota is a true leader in supporting the use of Ethanol," said Governor Pawlenty, who was regularly recognized as a legislator for his support of the Ethanol industry. "Although the Ethanol industry has not escaped the budget challenges we've had at the state level in recent years, we've been able to protect Minnesota's place as one of the most progressive states when it comes to producing and using this common sense renewable fuel. I am hopeful that through hard work with the GEC, we can continue to realize the tremendous value of Ethanol."

The state's reputation for leadership in renewable fuels was also enhanced last March, when Governor Pawlenty formed a task force to help guide the introduction of soybean-based biodiesel to the state.

GM To Advance the Use of E-85

General Motors Corp. and the National Ethanol Vehicle Coalition (NEVC) announced today a new public awareness campaign aimed at increasing the use of E-85. E-85 is a mixture of 85% Ethanol and 15% gasoline and can be used in flexible fuel vehicles (FFV) designed to use either E-85 or gasoline. GM has produced more than 1 million of the 3 million flexible fuel vehicles on the road today capable of using E-85.

The campaign is part of a two-year partnership between the nonprofit NEVC and GM. Last year the two joined forces to raise awareness of the benefits of E-85 at events in Wisconsin, Illinois, Minnesota and Missouri. The campaign included an "I Fuel Good" direct mail campaign that provided owners of GM flexible fuel vehicles with debit cards to be used toward the purchase of E-85.

"We saw substantial use of the cards for E-85 fuel in the markets we targeted, more than 20% in some areas," said Phil Lampert, Executive Director of the NEVC. "We hope to have a similar impact as we broaden our campaign to more cities and even more FFV owners."

The Ethanol promotion effort will take place during the next 10 months. It will include a variety of elements, including an effort to educate GM FFV owners and dealership employees on the benefits of E-85 and numerous awareness events in targeted cities.

"E-85 is just beginning to become available in many areas, and we want owners of E-85-capable GM vehicles to know the benefits of using this alternative fuel," said Gary Herwick, Director of Alternative Fuels for General Motors. "Working together with the NEVC, we can make a difference by educating and encouraging industry and consumers to do their part by continuing to develop the E-85 infrastructure, and by using E-85 in their GM flexible fuel vehicles whenever possible."

"The number of Ethanol fueling stations is limited but growing. That, along with this program, will help increase the use of E-85, which will benefit the environment and help enhance the nation's energy security," added Lampert.
Ethanol is alcohol that is currently made from domestically produced corn; it delivers performance similar to regular gasoline. Throughout the past five years, the demand for

E-85 has increased ten-fold to about 10 million gallons a year. In the future, production of Ethanol could come from biomass such as corn and wheat stalks, forestry waste and municipal waste. Ethanol is a clean, domestically produced alternative fuel that does not deplete petroleum energy supplies because it is made from renewable resources.

Many 2005 model year GM vehicles equipped with the Vortec 5300 engine will be available with E-85-capabilities, including the Chevrolet Avalanche, Suburban and GMC Yukon XL, Chevrolet Silverado and GMC Sierra full size pickups and the Chevrolet Tahoe police pursuit vehicle.

"These vehicles are just an example of an entire range of technologies we have developed to eventually remove the automobile from the environmental debate," said Elizabeth Lowery, GM's vice president for environment and energy. "In the long term our goal is to replace the internal combustion engine entirely with a hydrogen powered fuel cell, but until such time that the technology is commercially viable, we are working to improve fuel efficiency on a variety of fronts.

Department Of Transportation Supports Alternative Fuel Vehicles

The U.S. Department of Transportation, through the National Highway Traffic Safety Administration, will extend the existing program of providing automobile manufacturers an incentive to produce vehicles capable of operating on dual fuels like Ethanol and natural gas, or conventional gasoline, according to Doug Durante, Executive Director of the Clean Fuels Development Coalition (CFDC). Authority for the decision was granted by Congress and will cover vehicles through the 2008 model year.

"Automakers have responded to the challenge of Congress and are producing millions of vehicles that can utilize alternative fuels, yet can use conventional fuels when alternatives are not available," said Durante. "That kind of flexibility gives us the best of both worlds as we begin to chip away at a petroleum market that has had 100 years to mature. Clearly this incentive has been very effective with three and a half million cars on the road today and another million coming in the new model year."

CFDC officials noted that the Department of Trans-portation report supporting this decision made the point that "termination of the incentives now would likely discourage the further growth of the dual fuel vehicle fleet." The report further stated that they were extending the incentive for another four years to allow for the continued development of dual fuel vehicles," which CFDC believes acknowledges the tremendous gains in refueling infrastructure that have taken place, and will accelerate with the knowledge that these vehicles will be on the road.

The use of Ethanol in these vehicles, at concentrations of up to 85%, can reduce net greenhouse gas emissions more than any other alternative fuel according to recent studies. Ethanol also significantly reduces carbon monoxide, particulate matter, and a range of other pollutants that contribute to ozone and urban smog. U.S. Ethanol production is also a huge economic stimulant, creating hundreds of thousands of jobs, adding hundreds of millions of dollars in capital investment to the economy, and returning tax revenue at both the federal and state level.

University Of Wisconsin-Madison Offers Courses

The University of Wisconsin-Madison, Department of Engineering Professional Development announces they will offer the following courses:
*The Basics of Stack Testing Methods 1-5 and Building a Testing Program, May 17-18, 2004 in Madison, Wisconsin. *Stack Testing for Nitrous Oxides, Sulfurous Oxides, and Volatile Organic Compounds, May 18-21, 2004 in Madison, Wisconsin.

The courses will focus on:
* intermediate-level, practical stack test procedures
* prescribed EPA methodologies,
* observation,
* proposed new methods

For more information, check the Web site with on-line enrollment: http://epdweb.engr.wisc.edu/emaG050 or call 800-462-0876

Redding Is New Epac Board Member

James Redding is Director of Marketing & Logistics for Aventine Renewable Energy. He is responsible for global sales of fuel Ethanol, grain neutral spirits, co-products and dried brewers yeast.

He graduated from Winona State University at Winona, Minnesota in 1976 with a Bachelor's degree in Business Administration and received his MBA from the University of Illinois in 1992. He had worked for Honeywell, Inc. prior to joining Williams BioEnergy in December, 1983.

Jim is the company's representative with various national and state petroleum industry associations. He was awarded the Illinois Petroleum Marketers Association's 1990 prestigious "Gas Pump" Award for meritorious service to the Association. This award is presented annually to the outstanding supplier representative to the IPMA who exhibits the highest degree of personal integrity, honor and commitment to excellence.

Jim resides in Bartonville, IL with his wife, Tish, and their two children, Ryan and Erin.

EPAC is pleased to welcome Jim Redding to the EPAC Board of Directors. Jim will fill the seat that was vacated when Mark Luitjens resigned.

Fuel Cells for Future

by Pam Henderson from The Oxy-Fuel News

The tiger in your pickup or combine fuel tank may one day be a fuel cell. This new power source is designed to work more efficiently than the internal combustion engine with less pollution and decreased dependency on fossil fuels.

A fuel cell is a device that converts chemical energy from hydrogen and air into electrical energy to produce a current. Think of it as a powered battery that doesn't run down or need recharging. To operate, you feed hydrogen in and get electricity, water and heat out.

Fuel cells are already being used to power backup generators in greenhouses and confinement livestock buildings. Deere & Company demonstrates a fuel-cell powered utility Gator. Your cell phone or laptop computer may soon be powered by fuel cells. But the real race is to replace what's under the hood of what you drive.

A single fuel cell generates only 0.7 volts of electricity. So 150 to 200 fuel cells combine into a stack that generates enough electricity to run prototype passenger cars, trucks and buses. Today's fuel cell stack for a full size pickup truck is the size of a small piece of luggage.

The most common mobile fuel cells being used are proton exchange membrane, or PEM, fuel cells. Each PEM fuel cell is a thin wafer with a catalyst-coated (usually platinum) membrane resembling a plastic film that is enclosed in graphite or ceramic plates. One side of the membrane acts as an anode and is fed hydrogen gas. The other side serves as a cathode and is bathed in air to provide oxygen.

Inside story. At the anode, a catalytic reaction takes place in which hydrogen atoms are encouraged to release their electrons and become hydrogen ions (protons). The protons pass through the membrane to reach the cathode.

The electrons are forced to take a different path around the membrane, creating an electric current as they travel to the cathode. At the cathode another catalytic reaction takes place as the hydrogen and oxygen combine to produce water. Hydrogen that escapes utilization recirculates to be used again.

The fuel cell stack sends the electricity to motors, which create the mechanical energy necessary to power the wheels and propel the vehicle. Pumps, compressors, heat exchangers, controllers and batteries are some of the other components that may be needed to make things go.

While hydrogen is a common element, it does not occur freely in nature. Fuel cell vehicles can be fueled with pure hydrogen stored on board in high-pressure tanks. Or the hydrogen can be extracted from hydrogen-rich fuels such as natural gas, Ethanol or methanol. A reformer - a small chemical plant on board the vehicle - converts these fuels to a clean hydrogen gas stream to feed the fuel cell stack.

As technology advances, farmers may be able to harvest their own hydrogen from plants, wind or the sun.

The first fuel cells in vehicles will likely be a hybrid configuration using a small diesel engine for tractive power and a fuel cell for auxiliary power. Although they are not expected to reach mass market before 2010, fuel cells are already revolutionizing power down on the farm.

EPAC (Ethanol Producers And Consumers) organized as a non-profit organization in 1991, with a thirteen person Board of Directors to oversee and guide activities. Membership includes individuals, businesses and organizations in over 26 states and 3 foreign countries.

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