The RFS was designed to drive growth in our domestic renewable fuel industry, and it is working. The private sector has made substantial investments based upon the RFS - and it is ready to make more. Changes to the policy jeopardize those investments and send a signal of uncertainty to investors, companies and scientists.  Fuels America opposes any effort to modify the RFS.

There have been a number of peer-reviewed independent studies on food safety that have addressed the issue of distillers grains, a co-product of ethanol production, and they all come to the same conclusion: using DDGs, a high quality animal feed, does not have the health impacts that Philpott alleges. Most importantly, a new study out of Kansas State University (Dec 2012), the same university that published a study in 2007 that the article cites, corrected their previous work, saying:

"There were no significant differences in the concentration of E. coli O157:H7 between animals receiving DDGS and the one receiving only steam-flaked corn. Neither the prevalence of E. coli O157:H7 positive samples, nor the concentration of the bacteria in the positive samples, were affected by the presence or absence of DDGS in the diets. These observations concur with the absence of statistical differences in the colonization rate and prevalence of E. coli O157:H7 in the gastrointestinal tract between the two groups of animals. There was no relationship between the use of DDGS in the diet and the level of E. coli O157:H7 shedding in cattle in this study."

There are a wealth of additional, recent peer reviewed studies highlighting the fact that there are no e. coli health risks associated with DDGs:

• (May 2013) published in Foodborne Pathogens and Disease, the study says: "DDGS had no effect on the STEC O157 prevalence in cattle populations."
• (Jan. 2013) published in Journal of Food Protection, the study says: "Feeding diets containing DDGS had no effect (P > 0.05) on the intensity or duration of fecal shedding of E. coli O157:H7 compared with the standard barley grain finishing diet."
• (Dec. 2012) published by the Agricultural Utilization Research Institute, the report says: "Neither corn distillers grains, nor soy glycerin, in steam-flaked corn-based diets supported shedding of E. coli O157:H7."
• (Feb. 2012) a study by Canadian Dept. of Ag published in the Journal of Animal Science says: "Inclusion of DDGS in cattle finishing diets had no effect on fecal shedding (P = 0.650) or persistence (P = 0.953) of E. coli O157:H7."

There are more studies to cite, but suffice it to say Philpott selectively picked an old study to create a sensationalist story where there is none.

A quick look at public health trends supports the truth outlined in the above studies: E. coli incidences found in ground beef sampling have dropped by more than 90% in the last decade. This is the same timeframe that DDGs production has increased many times over:

DDGs are not only safe, they are among the highest quality feed available. They are an export item for the US, helping to support economic growth, and they are a key to meeting the rising demand for livestock across the globe. Don’t let an irresponsible journalist trick you into believing otherwise.

By Tadd Nicholson, Ohio Corn & Wheat Growers Association

Volatile gas prices are hurting consumers in Ohio and across the country. While they may be briefly dipping right now, prices across the state still range from $3.25 to $3.67 per gallon. Coupled with our nation's subdued economic recovery that has left too many Ohioans struggling, high gas prices are putting a serious strain on family checkbooks. And, when record gas prices return - as they most surely will - this economic burden will worsen.

We all know that the relationship between economy and gas prices is a problem. And it's worse in Ohio than in most other states. The median household income in Ohio is $48,071, almost $5,000 below the national average. And in 2011, Ohio drivers paid $2,252 on average for gasoline. That's money taken away from clothes, food and other necessities.

We have reason to be hopeful, however. One solution to this serious issue has been a game changer for rural Ohio. The solution is ethanol.

Ethanol has created a significant new industry in our state, with nearly all of its impressive growth coming in the past decade thanks to two key factors: agricultural advancements that have led to record corn yields, and the support of the Renewable Fuel Standard (RFS) - a policy that encourages homegrown alternatives in the oil-dominated transportation fuel sector. According to a recent study from The Ohio State University, the ethanol industry supports 13,000 jobs and has invested $2.8 billion in the Buckeye state since 2008.

These are big numbers for our economy, and each gallon of ethanol we produce has ripple effects throughout rural economies too. The same OSU report found that for every single job created in direct ethanol production, nearly five are created in rural industries, like farming.

Beyond providing jobs and income to thousands of Ohioans, the ethanol industry creates a healthier, more competitive market for agricultural products. As margins for farmers go down, having multiple groups that want our product helps keep us in business. It's simple economics.

Another added benefit of our newly developed biorefining industry is the feed produced at refining facilities for livestock. To make ethanol, you take the starch out of a kernel of corn and begin to process it. The rest of the kernel, which contains nutritious oil and protein, is turned into high quality animal feed. This feed is a favorite of livestock farmers in the US, but is also a big export item, helping to bring money into our economy.

But farmers aren't the only ones benefitting from renewable fuel. Consumers are already enjoying lower prices at the pump thanks to ethanol. Research from multiple academic institutions show that blending biofuels like ethanol lowers the overall price of a gallon of gasoline. Because ethanol is less expensive than oil, and because the introduction of ethanol into our fuel has substantially increased the supply of gasoline in America, producing fuel that has been grown here has paid dividends for Ohioans and consumers across the country.

Growing crops in Ohio for food, feed and fuel is one part of the solution for a better future. With unpredictable high gas prices and the need to create jobs and spur our economy, we must support one of the few industries making progress on all of these fronts.

Nicholson is the executive director of the Ohio Corn & Wheat Growers Associationm Delaware, Ohio.

We did a little math and found that with profits averaging $6 billion, the top five oil companies made $13.8 million every hour during the first quarter of 2013. To put that in perspective, the median annual household income in the US is $52,762. In other words, it would take the average American family 261 years to make what the oil companies do in one hour!

So the next time you hear oil companies trying to attack the petroleum alternatives we desperately need, just remember what they're trying to protect: a monopoly on your gas tank and more money than most people will ever see in their lifetime.

--Paul Bryan, former Chevron executive

This week, oil companies are releasing their quarterly financials and Chevron, like the rest of the industry, has managed once again to amass exorbitant profits at the expense of the American taxpayer – $6.2 billion dollars in the last three months alone.

Now if oil companies like Chevron were actually interested in reducing the squeeze on our wallets, they would reinvest some of those billions into the research and infrastructure we need to support alternative, renewable fuels. But instead, Chevron “quietly shelved” its renewable fuel projects in 2010, despite assurances from their own scientists that their research had yielded a “technical winner.”

This is all part of a larger pattern. Oil companies were willing to support renewable fuel last decade, when they didn’t see it as viable competition. But now that they see real change on the horizon, they’re more worried about protecting their monopoly than ushering in the next generation of transportation fuel. That’s why API and its corporate backers (like Chevron) will go to any lengths to kill the Renewable Fuel Standard because they know that if gas prices stay high, so do their profits.

If this makes you mad (it sure makes us mad), then take a stand and sign the pledge to support renewable fuel!

“We should expect much more political destabilization of countries as [climate change] bites,” said Richard Choularton, a policy officer in the U.N. World Food Program’s climate change office. “What is different now from 20 years ago is that far more people are living in places with a higher climatic risk: 650 million people now live in arid or semiarid areas where floods and droughts and price shocks are expected to have the most impact.

“The recent crises in the Horn of Africa and Sahel may be becoming the new normal. Droughts are expected to become more frequent. Studies suggest anything up to 200 million more food-insecure people by 2050 or an additional 24 million malnourished children. In parts of Africa we already have a protracted and growing humanitarian disaster,” he said. “Climate change is a creeping disaster.”

Although this future looks bleak, speeding the transition from petroleum to more renewable fuel will reduce greenhouse gases -- and maybe global hunger as well.

First, his argument that “US dependence on oil imports is greatly reduced” and therefore we no longer need the RFS misses the mark. As long as the US remains reliant on oil as our main fuel source, swings in oil prices will continue to affect the U.S. economy – and harm consumers at the pump. Learn the “Truth Behind High Gas Prices in 60 Seconds.”

And, no, America cannot drill its way to oil independence. Check out why:

• A recent American Security Project report  finds that “we cannot drill our way out" of vulnerability to global oil markets. The reality that increased domestic production does not equate to being insulated from a global market – because America’s oil reserves are not big enough to supply 100% of the fuel demand.
• A recent report by IEA predicted that drilling our way to oil independence will still leave us with oil costing $215+ per barrel. And you guessed it: consumers filling up their tanks will foot the bill.

Unfortunately, for U.S. consumers the only way to truly reduce our dependence on foreign oil is by diversifying our fuel supply with low-cost, homegrown renewable fuel.

Second, Goreham get caught red-handed with not keeping up with the news cycle, when he writes, “recent studies show that the use of ethanol and biodiesel does not reduce greenhouse gas emissions.”

• News flash: Last week, the International Energy Agency (IEA) released their Tracking Clean Energy Progress report in New Delhi. The report explains that biofuels are playing a significant role in reducing greenhouse gases and in fact, IEA is calling for increased global biofuel production to further GHG reduction. Check out the full Fuels America blog post on this here.

Additionally, he states “mandates for ethanol vehicle fuel are also boosting food prices.”

• In reality there is no correlation between food prices and ethanol production. Need proof? In this chart, note the strong divergence in 2009 – as ethanol production rose, food prices fell. That is because food prices ARE driven by OIL prices.  Note the exact correlation between food and oil – not food and ethanol – prices in the 2009 time period, in this chart.
• According to the United States Department of Agriculture’s Economic Research Service, 84% of retail food costs are derived from non-farm costs, leaving the cost of food that derives from the value of farm products at 16%.

Bottom line: the RFS is providing consumers with choice and savings, creating jobs, and providing environmental and improving national security. What has the RFS done for you lately? A lot.

From climate change to oil sands development to MTBE in the groundwater, oil is contributing to just about all of these critical issues.  How do we deal with this? Use less oil, replacing it with a cleaner, more environmentally-friendly fuel.

Renewable fuel is homegrown and will help mitigate these environmental threats. Here are some of its environmental benefits.

Greenhouse Gas Emissions

There is a mounting body of evidence regarding greenhouse gas emissions (GHGs) and renewable fuel—academics (to name just two, Purdue University and the University of Nebraska-Lincoln have put out reports recently) and government researchers (for example, Argonne National Laboratory and the Department of Agriculture) agree that using corn ethanol can reduce life-cycle GHGs relative to gasoline. Estimates range from 17%-59% savings.

Furthermore, a study released last month looked at soil samples over the past decade to better understand how much carbon corn sequesters (takes out of the air and deposits in the ground) while it grows. The results? A much larger amount of carbon is being sequestered by corn plants than previously estimated. So you can expect future lifecycle assessments of corn ethanol GHGs to show even stronger gains versus gasoline, with this data in hand.

Advanced renewable fuel offers even greater GHG savings when compared to a gallon of gasoline, with DOE estimating savings of 86% and other sources estimating savings of over 90%.

Land Use

The amount of agricultural land required to produce 15 billion gallons of grain ethanol in the U.S. by 2015, the target set forth by the Renewable Fuel Standard (RFS), is likely to be less than 1% of total world cropland. And the land that is being used is being used better each year. A recent report on the topic demonstrated we are moving in the right direction in major categories: land use is down, production is up, water use is down, energy efficiency is up, and soil erosion is down.

This process of more efficient production with fewer resources is a necessity, as feedstocks used to make fuel for the RFS can only be sourced from land that was actively engaged in agricultural production in 2007, when the RFS was most recently updated. Without good stewardship of the land, and increasing efficiency, renewable fuel would not be able succeed in the way that it has in recent years.

This sustainable approach stands in stark contrast to the destruction that the oil industry is bringing to our land through their methods of drilling and oil sands extraction, part of which has resulted in 13 oil spills in the past 30 days.

Drinking Water

Because ethanol is made of naturally occurring materials, it is biodegradable. This is critical when considering ground water safety. The Governors’ Ethanol Coalition released this report, detailing the process and impact, writing that “products of ethanol biodegradation likely pose little to no health threat.”

If gasoline containing ethanol spills, the ethanol will biodegrade, while other components will not. Some gasoline contains an additive, MTBE, which ethanol replaces. This additive was the root of a recent lawsuit, where one oil company was ordered to pay $237 million because MTBE contaminated the groundwater, making the water from over 5,500 wells in New Hampshire unfit to drink.

Conclusion

Big oil is polluting our air, destroying our land, and messing with our ground water. Renewable fuel is reducing emissions, improving land stewardship and protecting fresh water. This Earth Day, as we take a moment to reflect on threats to our planet and the solutions at hand, we cannot avoid the simple fact that oil is an enemy to our environment, and renewable fuel can help us protect it.

Fred Yoder, farmer and Past President of the National Corn Growers Association (recording time stamp 51s – 4m41s)

A producer of corn, soybeans and wheat, Yoder uses new technologies and innovative practices, including the use of cover crops on marginal lands, filter strips and grass waterways that improve top soil and reduce runoff.

In his own words:

“Today I think it’s a great privilege for me to be able to feed and fuel the world. It’s a privilege to work the land. And with that privilege is a responsibility to do it in a sustainable way, and do it in a way that that’s going to leave it better even for my children, the next generation. And I’m able to do that in a lot of different ways.”

“We’ve all got those acres that are very productive …  but where I’ve been able to gain is to take my marginal land and pay attention to the soil profile and enhance that soil health through cover crops and also rotations and things like that to improve the organic matter. At the same time, organic matter is basically carbon. So the more I can increase my soil organic matter, I’m also sequestering carbon.”

“We can grow more biofuels on some marginal lands through perennials and take the crop off once a year and that takes the pressure off the annual crops.”

Jan Koninckx, Business Director for Biofuels, DuPont (recording time stamp: 4m50s – 8m54s)

As a 210 year old innovation company, DuPont’s commitment to sustainability is inherent in every piece of their supply chain. Koninckx discusses why and how the most recent example of that commitment is the company’s new cellulosic biofuels plant in Nevada, IA that will produce 30 million gallons of biofuel from leftover corn plants. DuPont also recently signed a partnership with USDA’s Natural Resources Conservation Service to develop and incorporate several conservation planning tools into their supply chain. These new tools for farmers will help them improve the quality of soil during corn stover harvest; and ensure certainty of the supply of the feedstock while also protecting the land.

Adam Monroe, President, Novozymes North America (recording time stamp: 8m58s – 15m36s)

Monroe explains how Novozymes uses bio-ag, science and technology to create natural solutions to everyday problems. Novozymes is exploring a whole new world of solutions that mimic microbiology in soil to increase yields, use less fertilizer, and make plants more resistant to adverse conditions such as droughts and floods. The company is also partnering with Chemtex in North Carolina where huge swine operations use thousands of acres of land to remediate nitrogen from hog waste. This land was previously un-usable for growing any crops. Until now, when it is being used to grow energy grasses that remediate nitrogen from the hog waste, and can be used as a feedstock for biofuels.

Click here to download the full teleconference audio.

The IEA’s Climate Change Scenario endeavors to hold global climate change to 2⁰ C by 2022, but notes that  we are not on track to obtain that goal. According to IEA, in order to reach the 2020 target the annual biofuels production needs to double and the capacity of advanced biofuels needs to increase six-fold. In order to succeed, IEA states that “this will require dedicated policy support for advanced biofuels and additional government funding for research and production.”

Currently, the United States is among the few regions to provide financial support for advanced biofuels as well as government policies to support such increases. Government policies like the Renewable Fuel Standard are a must to promote not only current production of biofuels but also provide a long-term policy framework to ensure investor confidence and aid in sustained production expansion. 

As IEA notes, biofuels are actively reducing emissions from the transportation sector. Increased commitment to the production and expansion of renewable fuels are crucial to helping us mitigate and prevent further damaging impacts of climate change.

Oh, and, there’s plenty of support for the RFS from both sides of the aisle, at the state and national level (contrary to what Bradley claims).

Here’s what Forbes missed, and what you need to know: the RFS is working for consumers, and it’s working well.

• Ethanol is blended into 97% of gasoline in America
• That’s displaced as much gasoline as would have been made from 462 million barrels of imported oil last year
• Renewable fuel blending slashed our spending on imported oil by $44 billion in 2012
• Ethanol production has gotten increasingly efficient, generating 5% more ethanol from a bushel of corn than a decade ago, while water use has been reduced by 40%
• And the renewable fuel industry is supporting thousands of jobs across the country (87,000 last year alone)

We could go on and on, but encourage you to visit the Renewable Fuel Association and check out their great round up of the benefits.

In light of all of this evidence, perhaps what Bradley is really trying to say is that the RFS isn’t working. . . for the oil industry. While Americans may want – and deserve – options when it comes to filling up their cars, the oil industry is clinging to it’s long-held monopoly.

When it comes to what benefits Americans, what is really counterproductive are attempts to undermine the RFS, and with it, our chance at fuel diversity.

·         USA Today covers NASCAR’s environmental initiatives, discussing their use of E15 gasoline.

·         Solazyme rolls out new technology that allows faster and more prolific production of oil from microalgae.

·         National Farmers Union President Roger Johnson, RFA President and CEO Bob Dinneen and Growth Energy CEO Tom Buis hit home the benefits of renewable fuel for rural America in this op-ed that ran in the Daily Yonder.

·         E85 use is up 13% from 2010 to 2011 according to an analysis by the Energy Information Administration, showing that people are using more and more of the high ethanol blend.

·         Earth Techling covered a National Research Council report that says we can reduce GHG emissions by 80% by 2050, if we use more biofuel.

That’s all for now. Enjoy the your week!

“Widespread support for ethanol, which is made from corn, appears to be eroding.”

• To substantiate this claim, NPR quotes a single gas station owner, but unfortunately (for the oil companies), the plural of anecdote is not data. Instead, a recent poll of US adults found that 64 percent support the Renewable Fuel Standard, which calls for ethanol to be blended into the nation’s fuel supply.

"’The oil crisis is going away,’ Verleger says. ‘We have plenty of oil. We have too much oil.’"

• If the oil crisis is going away, we imagine that consumers across the United States will take to the streets, rejoicing the end of high gas prices. Looking at recent trends, however, this does not seem to be the case.

"There is no guarantee that [E15] fuel will work properly in your vehicle."

• This quote comes directly from the Coordinating Research Council, an oil-funded group responsible for a series of “studies” purporting to show the dangers of E15. Here’s the reality: the EPA subjected E15 to over 6.5 million miles of testing, equivalent to 12 round trips to the moon, making it the most tested fuel, ever. By contrast, the CRC study doesn’t reflect a single mile driven, but rather, car components tested in isolation. Meanwhile, auto makers like Ford and GM have approved E15 for use in their new vehicles and some of the world’s most demanding cars and drivers at NASCAR use ethanol exclusively.

Here’s the lesson to be learned: as long as oil companies continue to rake in record profits, they’ll be able to keep distorting the news you read – even on days other than April 1st.

As part of this announcement, Sec. Vilsack visited DuPont's research facility in Iowa this afternoon:

Hillary Sullivan @dupontpioneer res. dir. gives @usda Ag Sec Vilsacktour of our research facility in #Iowa twitter.com/DuPont_News/st…

— DuPont News (@DuPont_News) March 29, 2013

For more, read the full release from USDA.

Essentially, the oil industry (and these editorial boards) are claiming that refiners have hit the so-called “blend wall” – that they’re unable to blend any more renewable fuel into the gasoline they produce and must therefore buy Renewable Identification Numbers (RINs) to meet the requirements of the RFS, a cost they say must be passed on to the consumer.

But as usual, this line of attack is a smokescreen, intended to distract from the record profits the oil industry continues to collect all while blocking consumer choice at the pump. So before you read another editorial bashing the only policy we have to reduce our dependence on fossil fuel, make sure you’ve got all the facts:

1. Oil companies are reaping record profits right now, and they want to protect those profits by shifting attention to biofuels. Last year the five oil majors netted $118 billion in profits, thanks to high gas prices.
2. The oil industry controls the RINs market because basically everyone trading in the RINs market is an oil refiner, and oil companies only need to use RINs if they refuse to blend ethanol. That’s exactly what they’re doing now – refusing to blend ethanol, because they’ve created the “blend wall.”
3. Oil created the blend wall by blocking consumer access to E15, which is approved and ready to go. Claims about a “maximum safe limit” are unjustified.
4. E15 renewable fuel would address any RIN “shortage” and there’s certainly enough ethanol available for purchase right now (at 65 cents cheaper than gasoline).
5. Since ethanol is cheaper than a RIN, oil companies are actually paying a premium to avoid blending ethanol -- and then threatening to make consumers pay for their unwillingness to allow choice at the pump.
6. Oil was for the RINs market before they were against it. Back in 2007, two major petroleum industry groups threw their weight behind the RINs program – indeed, they insisted EPA create it. Now they’re complaining about a system they wanted:

The rule's trading program allows refiners and others that do not want to use renewable fuels to buy renewable identification numbers (RIN), or credits from those who exceed the required level of renewable fuels. "The flexibility in the RFS plan is vital in order to integrate ethanol into the gasoline pool quickly and in the most effective way possible," said American Petroleum Institute spokeswoman Karen Matusic. The EPA has issued a reasonable framework to implement the RFS provisions, said National Petrochemical and Refiners Association Executive Vice President Charles Drevna.

(“Bush officials tout green credentials as EPA rolls out renewable rule,” The Oil Daily, 4/11/2007)

It should be clear now what’s really going on here. Oil companies are threatened by the first viable competition they’ve seen in decades, so they’ll distort and dissemble until they’ve drowned out any opposition to their monopoly on your gas tank. Don’t be fooled.

Because they'll do anything to squash the competition:

As sure as the moon waxes and wanes, the American Petroleum Institute buys studies to support their self-interested views. Their most recent study predictably attacks their main competitor: renewable fuel.
                    
The oil industry has been complaining about the Renewable Fuel Standard, yet they are the ones who failed to invest in the infrastructure necessary to avoid the compliance mechanism that has them up in arms. Everyone knew this investment would be necessary many years ago, and in typical form, the oil industry is threatening to pass the cost of their own inaction on to consumers.

Since oil price is set on the world market, what you pay at the pump relies on what happens to world events that we cannot control, like the Cyprus bailout that is being debated today. If we want lower and more stable prices at the pump, we have to wean our way off of oil, and replace it with inexpensive and homegrown renewable fuel.