Agricultural News
RFA Chief Says American Ethanol Is 'Under Siege and Fighting Back'
Wed, 06 Feb 2013 10:43:52 CST
Scheduled to address 1,100 participants in the National Ethanol Conference in Las Vegas, Renewable Fuels Association (RFA) President and CEO Bob Dinneen will declare, "The state of the ethanol industry can be summed up in five words: under siege and fighting back."
Explaining in his prepared remarks that "American ethanol is engaged in a Battle for the Barrel. The stakes are high; our adversaries are well-funded; and our challenges are legion," Dinneen will say that the industry is fighting on three fronts:
· Defending the major federal program for ethanol production, the Renewable Fuel Standard (RFS);
· Promoting motor fuels consisting of 15 percent blends of ethanol with gasoline (E15); and
· Opening new markets for American ethanol overseas, while opposing protectionist policies in Brazil and the European Union (EU).
Warning that the RFS is under attack by "the angry birds at the National Chicken Council, the mad cows at the American Meat Institute, and the big spending oil companies," Dinneen will declare that "Our adversaries are not dedicated to destroying the RFS because it has failed. Our adversaries are dedicated to destroying the RFS because it is succeeding."
In spite of obstacles in 2012 including "the worst drought in 50 years," "falling gasoline demand," "rising imports", and "a host of regulatory and commercial barriers to E15," Dinneen will report that the U.S. industry "produced 13.3 billion gallons of high-quality, high-octane biofuels, representing 9.7 percent of the nation's motor fuel and marketed in every state, from coast to coast and border to border."
U.S. ethanol production helps to free the nation from its dependence on imported oil, Dinneen will note. For instance, in 2012, ethanol displaced 485 million barrels of imported oil, lessening the nation's dependence on imports from more than 60 percent in 2005 to only 41 percent in 2012.
Stressing the importance of national debates about federal energy policy, Dinneen will explain that last years' experience demonstrated that the Renewable Fuel Standard (RFS) "is designed to give refiners and EPA multiple ways to meet the standards and administratively adjust the program to accommodate whatever market anomalies may arise." During the years ahead, Dinneen will pledge, the U.S. ethanol industry will defend the federal standard, "-our mantra must be, 'Don't mess with the RFS!'"
Turning to efforts to promote E15, now approved by the EPA, Dinneen will report that the first E15 stations opened during 2012. Meanwhile, RFA has developed the only Model Mitigation Plan approved by the EPA, as well as a retail advisory handbook, to guide gasoline marketers across the country in the proper labeling, documentation, distribution, dispensing and sale of E15.
On the international front, Dinneen will discuss the RFA's actions against "Europe's foolish effort to limit ethanol produced from what they call 'food feedstocks.'"
Warning that "Brazil promotes its own production with favorable tax treatment and subsidies for ethanol transportation, storage and export" while the EPA is weakening American ethanol's position in U.S. markets by "assigning specious land use change penalties to U.S. production." The result, Dinneen will explain, is that "Without Uncle Sam's federal finger on the scales, U.S. produced ethanol is the lowest cost ethanol in the world. Without that RIN credit Brazilian ethanol could not compete. With it, Brazilian ethanol is cannibalizing our market and displacing U.S. product. The inevitable consequences are catastrophic: Our plants are shuttering. Our workers are losing their jobs. And the continued evolution of our industry is stymied. This must end. "
"Ultimately, we'll need to open new markets in the Pacific Rim, India, China and anywhere in the world consumers are looking for clean-burning, high-performance, renewable motor fuels," Dinneen will declare.
In spite of all the challenges during 2012, the RFA leader will report, the U.S. ethanol industry supported 87,000 direct jobs and 295,000 indirect and induced jobs, while adding $43 billion to the GDP, providing $30 billion in household income to families, saving consumers between 78¢ and $1.09 per gallon, or about $1,200 per family, and reducing greenhouse gas emissions by 48 to 60 percent compared directly to gasoline.
Expressing optimism for the future of American biofuels, Dinneen will declare: "The nay-sayers keep writing obituaries for cellulosic ethanol. But the real news is that, in 2012, the first commercial cellulose plant was completed and several others began construction. Ineos in Florida is producing cellulosic ethanol today. From Abengoa in Kansas to ZeaChem in Oregon, the future of the ethanol industry can now be seen."
In conclusion, Dinneen will say: "The real story of 2012 isn't that, sometimes, we got knocked down. The real story is that we kept on bouncing back."
The full text of the speech as prepared can be read here.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
