Ethanol Producers and Consumers

Make plans to attend the 15th Annual EPAC sponsored Ethanol Conference, "Spurring Ethanol Into The Future", next June 12-14, 2005. For the first time ever, the annual EPAC conference will be held outside Montana, going to the Buffalo Bill country of Cody, Wyoming. EPAC is excited to be partnering with the Greater Yellowstone /Teton Clean Cities Coalition for this event. Cody is one of the stakeholders in that coalition. The schedule of events will follow EPAC's regular programming, beginning with a Membership meeting on Sunday morning at 8:30. This will be followed by a day of relaxing activities and networking, with an opening welcome reception that evening. Speakers and informative presentations will be featured on Monday and Tuesday.

EPAC and Yellowstone Park have partnered up to offer a special event on Sunday, a narrated tour of the Park.

Guests will leave the hotel at 11:00 a.m. aboard Yellowstone Park's alternative fueled bus for a five hour guided tour of the famous Park. A lunch and refreshments will be provided. Other fun activities, such as water rafting, fishing, golf and horse back riding, are available in this popular tourist area. Contact the hotel or EPAC to make arrangements for any of these extra activities. In addition, the world famous Buffalo Bill Historical Center that features five museums in one, is open to the public. You should allow a minimum of three hours and could spend all day to see this wild west display. EPAC will have discounted museum tickets available at the conference registration desk.

A bang up welcoming reception is planned for Sunday evening at the famous Irma Hotel in downtown Cody. A special showing, just for EPAC guests, will be the reenactment of famous gun battles held a hundred years ago on Cody streets. It is possible these gun fighters may even invade the reception. (Bring your cameras.) Heavy hors d'oeuvres and refreshments will be served in the historic Governor's room of the hotel. Later, you can stroll Cody's main street to experience western flavor and listen to live music.

Monday morning, the conference "Spurring Ethanol Into The Future" will begin at 8:30. As always, the agenda will feature industry experts on subjects ranging from new technologies, production processes, and marketing of biofuels. A number of nationally recognized experts have already agreed to participate. You will be sure to gain new information that will benefit the biofuel industries.

Conference will break Monday afternoon in time to allow guests to participate in the optional ticketed event that will include a barbeque pork dinner at Old Trail Town, followed by the Cody Nite Rodeo. The barbeque will feature a special whole roasted pig and trimmings served western style. Old Trail Town is a vast collection of historic buildings and western artifacts that provides a hands-on history lesson. The cabins have been moved to Trail Town from the surrounding area and include the cabin once used by Kid Curry and the Sundance Kid. Another is from the Hole in the Wall country. Head out to the cemetery where Jeremiah "Liver Eating" Johnston is buried and walk along the Boardwalk and look at the old time tools and wagons. Later, those who chose, can complete the evening by attending the two hour Cody Nite Rodeo that begins at 8:30 p.m.

Tuesday morning, the conference will resume with members of the Greater Yellowstone / Teton Clean Cities Coalition joining EPAC as part of the audience and as presenters. The EPAC conference will adjourn at noon, while the GYTCCC will be continuing with lunch and a business meeting in the afternoon. All are welcome to stay and learn more about Clean Cities and this unique Clean City Coalition.

Host hotel for the conference will be Blair hotels, including Holiday Inn, Comfort Inn and Buffalo Bill Village Resort. Call them at 1-800-527-5544 or email blair@blairhotels.com for room reservations or information.

You can find more information about Cody on the web at www.yellowstonecountry.org. The Cody Chamber is mailing booklets to all who attended the 2004 conference. Hope to see you at the 2005 EPAC Ethanol Conference.

As Oil Prices Rise, Congress Moves To Increase Use Of Ethanol

Legislation that promises to streamline often complex and confusing tax issues surrounding E-85 blending finally passed the Congress and has been signed into law. The Volumetric Ethanol Excise Tax Credit (VEETC) provision contained in the FSC/ETI Jobs Bill, will significantly improve the distribution and availability of both E-85 and biodiesel fuels. Phil Lampert, Executive Director with the National Ethanol Vehicle Coalition, stated that "E-85 can now be blended and delivered with the same ease as gasoline".

Shirley Ball, Executive Director for EPAC, stated "EPAC, along with many other Ethanol and biodiesel support organizations have been working to pass this legislation for a long while, and we are pleased to know it has finally been approved."

VEETC will include the following advantages for E-85:

* Any terminal location that now stores fuel Ethanol and gasoline is a potential E-85 distribution point.

* Any terminal operator, refiner or marketer (distributor, jobber or retailer)
who buys gasoline and Ethanol as separate commodities can receive the $.52 per gallon federal incentive and produce Ethanol blends of up to E-85 regardless of their company's tax obligations.

* These same suppliers can sell E-85 to any reseller or end user without concern about the customer's tax obligations. This could open E-85 sales up to agriculture uses and off road equipment that can be converted to E-85.

* E-85 could be sold through retail service station blending pumps if those stores also converted their premium gasoline tanks to Ethanol.

* E-85 blends can be blended and sold with no loss of cash flow due to funds locked in escrow until year-end income tax settlement.

* E-85 profit margins can more easily be determined at the time of sale without having to wait until year-end tax settlement.

The bill will also include major benefits for biodiesel blending and will lower the cost of biodiesel to consumers and fleets.

Lampert said "While the effort to pass the VEETC enjoyed broad and bipartisan support in the Senate, Senator Grassley and Senator Baucus, the Chairman and Ranking Member of the Finance Committee, were instrumental in shepherding the VEETC into the FSC/ETI bill. Absent their personal intervention, this critical legislation would not have been approved in this session of the Congress."

About four million owners of E-85 compatible vehicles will be able to benefit from the passage of VEETC. Vehicles such as the Ford Taurus and Explorer, the Dodge Ram and Caravan, and the GM Tahoe, and many more, can fuel with E-85. For a complete listing of E-85 compatible vehicles or E-85 fueling facilities, click on this website: www.E85Fuel.com.

More Brazilian Drivers Turn To Ethanol

. . . by Todd Benson, New York Times

When Brazil's state-owned oil company announced this month that it was raising gasoline prices to keep up with the rising cost of crude oil, Gutemberg do Brasil Moreira barely blinked.

Mr. Moreira is an oral surgeon who spends a good portion of his days battling traffic going to hospitals all over this sprawling metropolis. He drives a car that runs on either gasoline or Ethanol, or any combination of the two. But with Ethanol - or alcohol, as most Brazilians call it - selling at half the price of gasoline at the pump, Mr. Moreira does not waste any time deciding which fuel to use when filling up his three-month-old Volkswagen Fox.

"When I first bought the car, I tried it out on both gasoline and alcohol," he said. "But now I only use alcohol, and I'm probably spending 40 percent less a month on fuel because of it. It just doesn't make any sense to use gasoline if the car runs just as well on alcohol."

Like Mr. Moreira, hundreds of thousands of Brazilians are skirting the high cost of gasoline by driving these new "flex-fuel" cars, which hit showroom floors late last year and have been selling fast ever since. Lured by the low price of Ethanol, Brazilians bought almost 220,000 of these hybrid vehicles in the first nine months of the year, representing 24 percent of all new-car sales in the country. Some analysts and auto industry executives predict that number could jump to as high as 40 percent by early next year, and that eventually Brazil's auto market will be dominated by flex-fuel vehicles.

"In a few years, I wouldn't be surprised if all new cars in Brazil were equipped with flex-fuel engines," said João Alvarez, the top engineering executive for Volkswagen's Brazilian unit. "Demand is only going to increase, especially if oil and gasoline prices keep rising, and it's already clear that consumers like the product."

The German automaker was the first in Brazil to roll out a flex-fuel engine, introducing the TotalFlex Gol subcompact model in March of last year. Fiat of Italy and the American auto giants General Motors and Ford Motor have all since followed suit, although Volkswagen still holds the biggest share of the flex-fuel market, with 36.5 percent of total sales. The French carmakers Renault and Peugeot are also expected to bring out flex-fuel models for the Brazilian market before the end of the year.

"If you want to compete in this market, you're going to have to offer flex-fuel engines," said Joel Leite, who owns a Web site called Autoinforme that analyzes Brazil's auto sector. "Otherwise you're going to get left behind."

Brazil first started toying with the idea of nongasoline-powered cars at the peak of the global oil crisis in the 1970's, when its military dictatorship began a campaign to reduce dependence on costly foreign oil. With the help of government subsidies and generous tax breaks, automakers here designed and started manufacturing cars that ran exclusively on Ethanol. Sugar millers also benefited from the pro-alcohol campaign, getting the equivalent of millions of dollars in government subsidies to refine sugar cane into Ethanol. The government no longer offers the subsidies, but demand serves as an incentive to keep making Ethanol.

By the mid-1980's, Ethanol-only cars accounted for almost 90 percent of all new-auto sales in Brazil, making the country the biggest alternative fuel market in the world. But a poor cane harvest and high sugar prices led to an Ethanol shortage in 1990, enraging motorists who eventually migrated back to cars powered by gasoline. Today, fewer than 20 percent of Brazil's autos run exclusively on alcohol, but all gasoline here has a 25 percent mix of Ethanol.

Now, thanks to the emergence of flex-fuel engines, Ethanol is making a comeback. According to Datagro, a São Paulo consulting firm that tracks the sugar and alcohol markets, overall Ethanol consumption in Brazil is expected to rise by 4.08 million gallons, to 3.58 billion gallons, this sugar harvest season, because of additional demand from flex-fuel autos. Moreover, these hybrid cars consume more than twice the amount of Ethanol as alcohol-only vehicles, giving refinery owners an added incentive to keep producing fuel as well as sugar.

"The Ethanol market here in Brazil was practically stagnant for more than a decade," said Plínio Nastari, Datagro's president. "Flex-fuel cars are changing that," he said, adding that the risk of another shortage was unlikely because the country now keeps a strategic Ethanol stock for the off-season, when sugar is not harvested.

Another thing that sets flex-fuel autos apart from their Ethanol-only predecessors, which are notoriously slow to warm up on cold days, is a small gas tank under the hood that is used to start the car in chilly weather. Once the engine is running, the car automatically switches back to Ethanol or whatever is in the main tank. On the road, most flex-fuel cars perform equally on Ethanol or gasoline, but some, like the Ford Fiesta, have turned out to get slightly more horsepower when running on alcohol.

"It's not like you're using a source of energy that's worse in terms of performance," said Luis Salem, general marketing manager in Brazil for Ford, which started selling flex-fuel versions of its Fiesta Sedan and Fiesta Hatchback models in September. "Actually, it's better."

With oil prices hitting record highs of late, other countries are already expressing interest in importing the flex-fuel technology from Brazil. Volkswagen, for example, has already been host to delegations from Australia, Britain, China, India, Japan, South Africa and the United States.

"Everyone is interested in this technology," said Mr. Alvarez, the Volkswagen executive.

Even so, experts say it will probably take years - if not decades - before flex-fuel cars become as popular in other nations as they are in Brazil. After all, few countries have an Ethanol fuel industry and distribution system as advanced as Brazil's.

A fuel mix of 85 percent Ethanol and 15 percent gasoline, known as E-85, is available in at least 22 states of the United States, mainly Minnesota and Midwestern states, but it is still hard to find at the pump in most other parts of the country. By contrast, in Brazil, a country nearly the size of the continental United States, Ethanol is available at almost every service station.

"It may take a while, but there's no doubt that flex-fuel technology will eventually be used in other countries," said Mr. Leite, the auto sector analyst. "It's too good an idea not to be exported."

Carotenoids From Ethanol Byproduct?
. . . from The Trader Dispatch

In ongoing efforts to find economical and profitable end uses for the corn fiber and distiller's dry grains with solubles (DDGS) left over from making Ethanol, scientists have modified the fungus Fusarium sporotrichioides. They've given it genes for making lycopene and other carotenoids. This might one day lead to mass-production of lycopene from Ethanol coproducts, rather than by extracting and purifying it from tomatoes.

Regular consumption of lycopene appears helpful in preventing some cancers. While tomatoes and watermelon are good food sources, some consumers rely on dietary supplements for their lycopene.

Corn fiber would be an ideal raw material for fungal lycopene production because it's abundant and costs about a nickel a pound. With around 4 million tons of the fiber to dispose of annually, distillers usually sell it inexpensively, as livestock feed. When cultured in the laboratory, the modified fungus can produce 0.5 mg of lycopene per gram of dry weight in 6 days. The next step will be scaling up the process, culturing F. sporotrichioides in fermenters on a growth medium containing corn fiber or DDGS.

Timothy D. Leathers, USDA-ARS Fermentation Biotechnology Research Unit, Peoria, Illinois; phone (309) 681-6377.

Distillers' Grain
. . . from The Trader Dispatch

Ethanol's leftovers may help cattle producers cut their feed costs while maintaining the quality of their animals when it comes time for slaughter, according to preliminary findings of a study. Relatively small amounts of distillers' grain have been fed to animals for years as a protein supplement. The University of Illinois study, expected to be completed this month, shows that raising the percentage of distillers' grain in a cow's diet can make the feed an effective source of calories, too, says Larry Berger, a professor of nutrition in the department of animal sciences.

Net Energy Balance
. . . from Novozymes

The U.S. Department of Agriculture's office of Energy Policy and New Uses recently updated their 1995 Net Energy Value (NEV) study for Ethanol. In the July 2002 study, authors Hosein Shapouri, James Duffield and Michael Wang cite a 34% net energy gain with Ethanol, including the planting, harvesting, transportation and processing of the corn into Ethanol. In fact, nearly all studies since 1992 have indicated a net positive NEV for Ethanol with the most notable exception being a study by Professor David Pimentel of Cornell University, the assumptions and final conclusions of which have been widely refuted.

The driving force behind a growing net energy gain lies not just in the Ethanol production process but also in better farming efficiencies. With the advent of no-till, farming has become much more energy efficient. Better chemicals for weed and insect control and fewer trips through the field result in reduced energy use. This, combined with increasing efficiencies in Ethanol production technologies, has changed the NEV from a 22% gain in 1995 to 34% in 2002.

Growing Diesel Fuel
Low-sulfur diesel fuel with ignition characteristics suitable for modern engines can be obtained from the seeds of a wild bush that grows on land too nutrient-poor for farming.

The Jatropha Bio-diesel Project, which is currently being conducted on two plantation in India, was described to Popular Mechanics during a recent technology conference sponsored by DaimlerChrysler in Stuttgart, Germany.

Jatropha curcas, also known as the purging nut, has seeds that are 60 percent oil. Chemically combining that oil with an acid or alcohol produces a usable fuel. Biodiesel residue can be used an organic fertilizer.

BLOOMING FUEL: Long considered a nuisance, Jatropha has energy to burn.

State FFA And ACTE Workshops

. . . by Patsy Reimche

Patsy Reimche and Gary Schaff explain to this FFA member the benefits of using clean burning Ethanol.

Gary Schaff, EPAC Board Member and Patsy Reimche of the EPAC office staff and the E-85 Ford Explorer were participants at both of these events recently held in Great Falls, MT. The FFA members were attracted to the EPAC both as Gary demonstrated over and over the burning of Ethanol and regular gasoline. This was to show that Ethanol burns cleaner and hotter than gas.

"One kid would watch the demonstration and then go and bring back a bunch more to watch this happen" said Patsy. "They were a great group and were real interested in alcohol and alternative vehicles. We are
getting through to the younger generation which has been Gary's goal all along."

At the ACTE (Association for Career & Technical Education) Region V conference it was pretty much the same thing, except an older group. They showed a lot of interest at our booth and Gary held a workshop to answer and hand out Ethanol information.

Ethanol Plant Construction

According to the Renewable Fuels Association, two more new Ethanol plants have begun construction. A farmer-owned Ethanol plant at East Kansas Agri-Energy, LLC, has begun construction near Garnett, Kansas. The plant will process over 12 million bushels of corn into 35 million gallons of Ethanol and 105,000 tons of distillers grains annually. When operating, the plant will employ 30 to 32 people. ICM, Inc., of Colwich, Kansas, is the general contractor and provides the process design. Fagen, Inc. of Granite Falls, Minnesota will participate in the construction.

In addition, near Goldfield, Iowa, the Central Iowa Renewable Energy, LLC is beginning construction on their plant that will process over 18 million bushels of corn into 50 million gallons of Ethanol and 160,000 tons of distillers grains annually. In what might be the start of a new trend, the plant's boilers will be fired by coal instead of natural gas. Central Iowa Renewable Energy Board President Paul Rasmussen added, "We are very excited about our project. We are especially proud of our unique ownership and plant design. Our project has created a partnership between the area producers, their city cousins, and our local cooperative. Steam for the plant will be produced by using 'new coal technology.' We believe our future is extremely bright!" Fagen, Inc., the Granite Falls, Minnesota design-build contractor, is the general contractor and will incorporate a process design provided by ICM, Inc. of Colwich, Kansas.

Bob Dinneen, RFA president congratulated the farmer owners of both plants and stated, "Their belief in renewable fuels has resulted in building Ethanol plants that will boost the local economy, create jobs, and increase corn prices. The positive impact of these plants will be felt by all members of the community."

Ethanol-To-Hydrogen Research Receives DOE Funding

During a trip to the state, Secretary of Energy Spencer Abraham recently announced over $5 million in hydrogen research grants to Ohio companies and universities. These grants will help fund hydrogen research projects as part of the effort to strengthen America's energy security and significantly reduce greenhouse gas emissions.

"Hydrogen from diverse domestic resources has the long-term potential to deliver greater energy independence by reducing America's reliance on foreign sources of energy," Abraham said.

DOE Secretary Abraham continued: "The projects we are announcing today highlight the emphasis that the department has placed on renewable production of hydrogen. They will move the nation toward advanced technologies that use renewable energy sources to make and deliver safe, affordable hydrogen for fuel cell powered vehicles."

Ohio State University Research Foundation in Columbus received a four-year, $1.1 million award to develop a low cost catalyst to help convert Ethanol into hydrogen when using reforming (i.e. chemical conversion) processes. Small-scale distributed reforming systems could be used at existing gasoline stations thereby eliminating the need for a substantial hydrogen transport and delivery infrastructure.

This research will focus on developing non-precious metal catalysts, which will reduce capital costs and also allow operating at lower temperatures thereby further reducing the cost of hydrogen. Researchers hope for a breakthrough in distributed reforming of Ethanol and provide a renewable-based option for hydrogen production during a transition to widespread use of hydrogen fuel cell vehicles.

EPAC's Executive Director Shirley Ball and Ron Lamberty from ACE (American Coalition for Ethanol) manned a booth at the Pacific Oil Conference in September and supplied updated ethanol information to Petroleum Marketers.

Construction At Granite Fall Energy Begins

Granite Falls Energy, LLC recently began construction on its Ethanol plant near Granite Falls, Minnesota. The plant will process over 17 million bushels of corn into 45 million gallons of Ethanol and 130,000 tons of distillers grains annually. When operating the plant will employ 30 to 35 people.

Fagen, Inc., the Granite Falls, Minnesota design-build contractor, is the general contractor and will incorporate a process design provided by ICM, Inc. of Colwich, Kansas.

Aventine Renewable Energy, Inc. announced it has entered into an agreement to market Granite Falls Energy's Ethanol production. In addition to its own two Ethanol plants, Aventine markets for ten other plants, about 550 million gallons per year.

Currently, 81 Ethanol plants have the capacity to produce over 3.4 billion gallons annually. There are 12 Ethanol plants under construction.

Energy 2050: Which Options For Change?
. . . from The Renewable Energy News

By 2050, energy demand could double or triple as population rises and developing countries expand their economies and overcome poverty. At the same time, the world is facing up to one of the most complex environmental challenges: climate change. How much of a change in technologies and policy frameworks is needed to move toward sustainable energy systems? Which energy options do we foresee to ensure this transition and reshape our energy future?

These questions lie at the heart of Facts and Trends to 2050: Energy and Climate Change, the World Business Council for Sustainable Development's (WBCSD) new publication launched today at the World Energy Congress in Sydney, Australia.

Based on the practical input of a cross-section of industry leaders, Facts and Trends explores challenges in achieving sustainable energy systems and infrastructures in the future. Drawing from existing data, this work is meant to highlight the magnitude of the challenges and the dilemmas facing society and business.

Speaking at the event, Anne Lauvergeon, Chairman of the Executive Board, AREVA, and a co-chair of the WBCSD's Energy and Climate program, explained that the pace of change in the energy cycle is slow. "It is like a super-tanker," she said. "It takes time to change direction, so you must anticipate, otherwise the consequences may spiral out of control."

Facts and Trends states that for the developing world to improve their living standards, increased efficiency, diversity and technological development in our energy systems will be the keys to achieving this without escalating emissions unsustainably. And there are already signals of change, such as an increased use of lower carbon fuels, the introduction of advanced forms of renewable energy and high efficiency vehicles offered to the consumer.

She concluded by saying that Facts and Trends was meant to serve as a platform to engage a broad set of stakeholders in a discussion around energy and climate change dilemmas and options. "Our intent was to lay out the facts in terms that everyone can relate to, and one of our key messages is that we have the means to act, but we need to start today to make a difference in 2050."

The World Business Council for Sustainable Development is a coalition of 175 international companies united by a shared commitment to sustainable development. The council also benefits from a regional network of 50 business councils and partner organizations, representing more than 1,000 business leaders worldwide.

Ethanol Byproduct Shown To Improve Soil

. . . from the ARS News Service

In the first study of its kind, an Agricultural Research Service scientist has shown that the byproduct of Ethanol fermentation from corn stover can increase the structural stability and organic matter content of soil, particularly of highly eroded soil.

"Stover" refers to the plant parts remaining in the field after harvesting corn. The corn stover Ethanol byproduct has three times the concentration of nitrogen as the original cornstalks. It consists of stalk parts too tough for digesting by alcohol fermentation microbes and has a compost-like consistency, according to Jane Johnson, a soil scientist with the ARS North Central Soil Conservation Research Laboratory in Morris, Minn.

Applying this byproduct to the land may partially offset the risks associated with harvesting crop biomass for conversion to biofuel. The main risks from harvesting the biomass are possibly increasing soil erosion, as well as depriving the soil of carbon and nutrients it might have derived from the biomass. Another consideration is the safety of applying the fermentation byproduct to farm fields.

In the lab, Johnson applied the byproduct to two types of soil, at three rates, up to the equivalent of six tons of stover an acre. Some of the soil was very rich in organic matter, while some was highly eroded and low in organic matter. Johnson also added chopped cornstalks to some of each soil type and left some untouched, for comparison.

To verify the safety of applying the byproduct of stover fermentation to farm fields, Johnson is growing crops in soil treated with the byproduct, for analysis. Preliminary results have shown no adverse effect to corn or soybeans grown in the presence of the byproduct.

The U.S. Department of Energy (DOE) helped fund this study as part of a complete DOE life-cycle analysis of Ethanol production from corn stover that includes comparing possible economical and environmentally sound uses for the byproduct. The work of Johnson and colleagues suggests one use may be as a soil treatment for eroded areas.

A paper on this study has been published in the Soil Science Society of America Journal.

Ethanol Or Biodiesel?

Blending relatively low levels of alternative fuels with conventional fuels is an important option for reducing petroleum use and an important strategy in the Clean Cities Program portfolio. . . .from the Clean Cities electronic Newsletter at http://www.eere.energy.gov/cleancities/.html

ETHANOL

BIODIESEL

Are you already using a domestically produced alternative fuel in your vehicle? If you live in a major U.S. city, you probably are.

In the United States, one out of every eight gallons of gasoline sold contains Ethanol. Most of this Ethanol is purchased as blends of 10% Ethanol and 90% gasoline, known as E-10, and is used as an octane enhancer to improve air quality.

If you are driving a flexible fuel vehicle, you may be using E-85, a blend of 85% Ethanol and 15% gasoline. For more information on flexible fuel vehicles or E-85, visit the Alternative Fuels Data Center. For more information on

E-10 and other low-level Ethanol blends, read on.

Ethanol is a colorless liquid that is distilled from agricultural crops - usually corn. Most Ethanol is produced in the grain-growing states of the Midwestern United States. The U.S. Department of Energy is also exploring ways to make Ethanol from crop wastes like corn stalks and corn husks.

The Clean Air Act Amendments of 1990 mandated the use of oxygenated gasoline in areas with unhealthy levels of carbon monoxide. At the time, the primary oxygenates were Ethanol and MTBE. Subsequently, MTBE has been shown to contaminate ground water supplies, and the demand for Ethanol has increased significantly.

Benefits:

* Ethanol is domestically produced and allows us to reduce our use of imported petroleum.

* Ethanol emits less carbon monoxide than gasoline.

* Adding oxygenates like Ethanol to gasoline reduces carbon monoxide emissions.

* Ethanol production supports U.S. farmers and creates jobs.

Performance:

All auto manufacturers approve the use of low-level Ethanol blends. Fuel Ethanol blends are successfully used in all types of vehicles and engines that require gasoline. Approval of Ethanol blends is found in the owners' manuals under references to refueling or gasoline.

Availability:

Fuel Ethanol blends are sold in every state, and Ethanol blends make up nearly 100% of the gasoline sold in carbon monoxide and ozone nonattainment areas during certain months of the year.

Biodiesel

Are you looking for a domestically produced, renewable fuel that you can use in your diesel engine? If so, biodiesel may be the perfect fuel for you.

When biodiesel is blended with petroleum diesel, it produces a fuel that is compatible with diesel engines, displaces imported petroleum, and reduces harmful emissions. Blends like B-2 (2% biodiesel and 98% diesel) and B-5 (5% biodiesel and 95% diesel) are becoming increasingly common as drivers become more aware of the many benefits. Biodiesel blends of 20% biodiesel or more are also widely available and may qualify for credits under the Energy Policy Act of 1992. For more information on B-20 and other high-level blends of biodiesel, visit the Alternative Fuels Data Center.

Biodiesel is manufactured by chemically reacting vegetable oils, recycled cooking grease, or animal fats with alcohol. Today's biodiesel is primarily made from domestically produced soybean oil, which has extremely low sulfur content. Cooking oil and animal fat biodiesel is also produced with very low sulfur so today's biodiesel already meets EPA 2006 regulations for ultra-low sulfur diesel fuel.

What types of vehicles run on biodiesel blends?

As long as the biodiesel used for blending meets ASTM D6751 standards, low-level biodiesel blends such as B-2 and B-5 can be used safely in any compression-ignition engine that is designed to be operated on diesel fuel. This may include diesel-powered cars, trucks, tractors, boats, and electrical generators.

Fuel Costs

Biodiesel costs about 1.5 times more than No. 2 diesel fuel, so you can expect biodiesel blends to cost slightly more than standard diesel. This elevated cost may be offset by the superior lubricity of biodiesel, which reduces wear and tear on the engines.

Benefits

In addition to displacing imported petroleum, biodiesel blends reduce air pollution and greenhouse gases. Using biodiesel also supports U.S. farmers by providing a market for excess soybean oil.

Performance

Biodiesel has an energy content that is about 10% less than diesel No. 2 and about the same as diesel No. 1. In theory, adding biodiesel to diesel No. 2 should slightly reduce fuel economy, power, and torque. In reality, low-level blends are practically indistinguishable from conventional diesel.

Biodiesel also has superior lubricity, which reduces wear and tear on the engine and can increase the life of engine components. In addition, it is a mild solvent that will help clean your fuel system.

Important Pro-Ethanol Tax Measures Becomes Law

The JOBS bill, also known as the FSC-ETI bill, that was recently signed into law, will help secure the future of biofuels and boost rural economic development, according to a press release from the Washington, DC based Renewable Fuels Association (RFA). The JOBS bill, which includes several important tax changes for Ethanol, won strong bipartisan support in the U.S. House of Representative and Senate.

"The JOBS bill will lead to new jobs in the Ethanol and biodiesel industries as well as thousands of jobs in the road building sector," stated Renewable Fuels Association President Bob Dinneen. "Extending the incentive is crucial to securing financing for new Ethanol plants and continuing the rural economic resurgence Ethanol is fueling. Further, by ensuring that all gas taxes on Ethanol-blended fuels stay in the Highway Trust Fund, this bill adds $3 billion a year to available highway funding. Highway safety will be improved and thousands of new jobs building and repairing highways will result. The RFA is proud to have worked with the American Road & Transportation Builders Association and many others to enact this common sense policy."

The JOBS bill also contains important tax provisions designed to boost job creation in the U.S. They include the Volumetric Ethanol Excise Tax Credit (VEETC), which extends the Ethanol tax incentive to 2010 and eliminates any impact of the Ethanol program on the Highway Trust Fund, and modifications to the Small Ethanol Producer Tax Credit, which allows cooperatives to fully participate in the program. A new tax credit for biodiesel is also in the bill.

Dinneen stated the JOBS Bill is the most important pro-Ethanol legislation since the 1990 Clean Air Act Amendments.

Twin Cities Clean Cities Coalition
. . from Clean City News

The Twin Cities Clean Cities Coalition (TC4) is working to secure funding for a project to optimize a Toyota Prius and other hybrid electric vehicle models to run on E-85. The project is the follow-up to a demonstration conducted by automotive engineering students at Minnesota State UniversityMankato in partnership with Communities for Responsible Energy and Environmental Demon-stration. Students gradually increased the alcohol content of gasoline used in a 2003 Prius to 85% Ethanol without making changes to the fuel system or engine. The Prius was driven all summer on E-85 and showed gains in horse-power and torque, while significantly reducing tailpipe emissions. There were no engine-related problems. For more info, visit: www.creedproject.org.

USDA Grants
. . . from the Biomass Initiative Newsletter

On September 15, 2004, the USDA announced $22.8 million to support renewable energy initiatives in 26 states for FY 2004 as part of the Renewable Energy systems and Energy Efficiency Improvements program created by the 2002 farm bill. This program is meant to assist farmers, ranchers, and rural small businesses develop renewable energy systems and make energy efficiency improvements to their operations. Included on the list are development of wind energy, Ethanol and Biodiesel production, and more. A complete list of the selected grant recipients and projects can be found at www.rurdev.usda.gov/rd/newsroom/news.htm.

Ethanol Stimulates Main Street

Statistics for an Ethanol plant producing 40 million gallons of Ethanol per year:
Employs 35 full-time employees, with a payroll of nearly $1.8 million
Has a local ant state tax liability of about $1.5 million
Generates gross revenues of $50 million with 60 to 70% of the dollars typically spent within a 70 mile radius
Creates total economic impact of more thn $100 million with over 500 indirect and induced jobs.
Creates one-time construction impacts of $150 million and about 1500 jobs during the year and a half construction

National Biodiesel Conference

The 2005 National Biodiesel Conference and Expo will be held January 20 - February 2, in Fort Lauderdale, Florida. Biodiesel marketers, consumers, feedstock growers, fuel distributors, government leaders and biodiesel users alike will benefit from this conference experience. For more information, please call the National Biodiesel Board at 1-800-841-5849 or check the web site "www.biodiesel.org/expo2005.

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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