Fight brewing over ethanol in Illinois

~ Forewords ~
Gasoline_thmbI noticed a few weeks ago that my usual AMACO Gas station had Two out of 3 tanks had ethanol in them At first I thought all three had it but the Highest Price Premium apparently was spared. I checked all the service stations Shell etc and it was the same for all. I asked my station owner why this was happening, and I found out that all the distributors for the area were from the Iowa side and he was under contract to supply this product. I had two previous vehicles both 4 cylinders that had to be rebuilt between 40-50,000 miles because I was using 10% ethanol.

When asked I was told that this product burns hotter along with the fact they have to use another liquid to get from the plant to the distribution tanks which by the way were in Iowa. I a News article from our local Television station, It had as a cover story that the Quad Cities would have to find a solution, and within the story was how Iowa politicians were pushing the use of ethanol in the gas. I asked him are we suppose to use Premium Gasoline in our Lawn Mowers and Snow Blowers because we could not use any gas with ethanol in them. Because all the distribution tanks are on the Iowa side, what gives them the right to dictate to Illinois that if we use ethanol the gasoline is cheaper, which is why when the basic 87 gasoline was more expensive. – John M. 

March 12, 2013 – A battle between the oil industry and the nation’s corn farmers is brewing in the state Capitol.

In action Tuesday, a Senate panel heard testimony on a proposal backed by corn growers that would remove the sales tax break on gasoline that is mixed with 10 percent ethanol.

Instead of granting incentives to motorists who buy what is commonly known as E10 fuel, the corn growers want to instead apply the tax breaks to gasoline that is 15 percent ethanol.

The shift to E15 would not only potentially boost demand for corn, but it is being promoted as an environmentally friendlier alternative to straight gasoline.

Petroleum marketers, however, are fighting the push.

Representatives of the oil industry, including gas station and pipeline owners, told members of the Senate Agriculture Committee that ending the tax break would not only hurt gasoline retailers, but it could hurt motorists and the environment because E15 may damage engine components and storage tanks.

“It would create leaks out there in our fueling systems,” said Jeff Dzierzanowski, manager of new business development at Source North America Corp.

“I don’t have anybody asking to buy this product,” said Matt Schrimpf, president of Hartford-based HWRT Oil Co.

The Illinois Corn Growers Association, the Illinois Renewable Fuels Association and others say E15 has been extensively tested and has been approved for use by the U.S. Environmental Protection Agency.

State Sen. John Sullivan, D-Rushville, who is sponsoring legislation seeking to end subsidies for E10, said the time is right to begin pushing for E15.

“E10 does not need a tax incentive anymore,” Sullivan said.

State Sen. Kyle McCarter, R-Lebanon, said the legislation could have unintended consequences for petroleum marketers, who would have to spend money to retrofit their stations.

“I know we all want to do good things for the environment, but we may be putting a huge burden on this industry,” he said.

The legislation is Senate Bill 52.

Written by Kurt Erickson for the Quad-City Times, March 12, 2013.

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4 thoughts on “Fight brewing over ethanol in Illinois

  1. John M

    From The Dallas News

    Gasoline pumps alert drivers of the ethanol content that a gallon of fuel may contain. The 10 percent threshold is the point at which automakers say they can no longer guarantee their engines.

    John Donovan
    Big oil has the torch and pitchfork crowd astir with the ethanol booger man. 10% means billions to Big Oil, 15% is unthinkable to them. Better to get the flying monkeys aloft now than wait till the Congress ups the standard to 15%. I recently read a long spiel in Car and Driver warning me off the evil ethanol which summed up by pointing out the float in my carburetor will be sitting in Jello………. Okay, but since I’m not driving a 1963 Falcon and my car doesn’t have a carburetor float, I’ll take my chances.

    DeadlyFurby
    @Brandon who said:
    “If we want to lessen our need for foreign oil then drill here in America. If you add the oil fields that have been discovered in the Dakotas, Wyoming, Alaska, off the California coast, and the new drilling methods which opens new fields in Texas, we have more oil under US than the saudi’s could ever think about”

    The U.S. ranks 13th in the world in proven oil reserves. OPEC ranks #1 with 1,112,448 – 1,199,707MMbbl compared to the U.S. at 23,267MMbbl. That’s a difference of almost 50 times as much proven oil reserves OPEC has as the U.S. does.

    Saudi Arabia by itself has 10 times as much oil reserves as the U.S. does!

    Pat Patterson
    This was the dumbest law that Bush ever signed. The ethanol mandate is just kowtowing to the farm lobby. The farmers that pushed this don’t even use ethanol based fuels because it damages engines. It reduces mileage and contributes to air pollution due to it’s volatility. Our air has improved due to the development of more fuel efficient engines and subsequent reduced emissions. Ethanol has nothing to do with this.

    James Johanning
    You can’t say that E10 is where manufacturers draw the line. My Silverado will handle E85, E35, E15, E10 and pure gas.

    What you can say is that SOME manufacturers have refused to provide the US market with high ethanol tolerant vehicles. Specifically, Honda and Toyota DO MANUFACTURE engines that can even handle E100 anhydrous sold in Brazil. If they can sell them in Brazil, they can sell them up here.

    And, I, like other royalty owners, have ZERO sympathy for those on the production side.

    Pat Patterson
    You are ignorant about the effects of ethanol. Your Silverado was designed to run on E-85 ethanol. It has seals and other components that resist corrosion by ethanol. Ethanol is too damned corrosive to move by pipeline. It has to be moved by tankers and blended at the pump. There’s no guarantee that cars not designed to use more than 10% ethanol won’t get a slug of greater than 10% that will damage their engines. There are far more engines and motors that can’t use ethanol than care engines. There are lawnmowers, gas powered trimmers and numerous other devices that are damaged by ethanol.

    If the government had been up front and told the public and automakers from the beginning that vehicles would have to use x, y and z percentage of ethanol by a certain date then engines could have been designed to use ethanol in higher amounts. But the EPA and other government agencies didn’t and don’t give a damn about consumers and the costs to them. Well, we don’t live in Brazil and they have been destroying hundreds and thousand of acres of land in the rain forest and other areas to grow more sugar cane. But you don’t care about their environment do you. Their cars are specifically designed to burn pure ethanol. The cars in the rest of the world would all be destroyed using that. If all the cars in the US burned pure ethanol, it would take an area the size of California to grow enough sugar cane to produce our needs. No one in this country wants to buy any Brazilian car that uses “Everclear” which is what 100 % ethanol is. If you think the idea is so goo then you go ahead and buy one and find the fuel for it.

    James Johanning
    Pat, how in the world could you possibly conclude what I think about effects of ethanol production and consumption on the earth’s environment from my four sentences?

    Cool off.

    Anonymous
    Also, ethanol is hygroscopic (attracts water), another reason it can’t travel in pipelines. And, stop turning corn (food) into fuel.

    Brandon
    If we want to lessen our need for foreign oil then drill here in America. If you add the oil fields that have been discovered in the Dakotas, Wyoming, Alaska, off the California coast, and the new drilling methods which opens new fields in Texas, we have more oil under US than the saudi’s could ever think about. What needs to happen is our own government needs to get out if the way and let us get it. In addition to that we need new refineries. There had not been a refinery built in America since the 70’s, many are from the 50’s. New refineries are about 20-30% more efficient. Why don’t we have them? Because the EPA laws and requirements make it cost preventative. Their stupid rules and regulations that overstep common spence and common business practice are preventing us from being free from foreign oil.

    James J Horn
    Who someone explain to me then, while a barrel of oil is hovering around $105 a barrel, are gas prices going down ?? I thought the price of gas was tied to the cost of a barrel of crude oil ! What games are going on here ?
    Reply

    Brandon
    In the past that was 99% if the reason for the cost, but when folks started speculating on oil futures in the commodities markets, they took the final price away from supply and demand to what they think will happen and how they can manipulate the price to make more money. Now I’m all for folks making money, but if we would drill and refine more the chance of a supply disruption wouldn’t be there so the folks playing in the market would have very little influence in the price as opposed to today.

    Ted Brown
    Brandon, if all the oil in the world were under US soil it wouldn’t change how the commodities market manipulates the price of a barrel of oil.

    “Americans think they know whom to blame for high gas prices. The usual culprits are people who drive too fast, inefficient engines, OPEC, and even China. Sure, those are all factors, but that’s like blaming the housing bubble on the lumber industry or a surfeit of carpenters. It’s no great mystery who is responsible for higher gas prices. As I and others have written in the past, the biggest culprits are the speculators gaming the futures markets to line their own pockets. We know all that. What might come as a shock is that they are being enabled by the Federal Reserve.”
    from: http://www.busi­nessweek.com/in­vestor/content/­apr2011/pi20110­419_786652.htm ­

    Ed goes on to say a “workable” mix of buyers, sellers and speculators would be 1/3 and 1/3 and 1/3. Right now the market is made up of about 80%, give or take, of speculators who just flip paper to line their pockets.

    James Johanning
    We’re in the process of switching to the winter blend. Winter blends are cheaper to produce because they don’t have to have the additives used in summer gasoline to inhibit smog forming chemicals.

    Warren Dexter
    Ken Kesey, author of “one flew over the cukoo’s nest” once said, “I’ve always hated the phrase, send a message, because it means doing the wrong thing for the right reason.”

    In the case of EPA efforts to protect us from all of the “Oncelers” that will perpetrate evil on our skies and waters, there is an arrogance that is only outweighed by the agency’s ignorance.

    Not only do the well-intentione­d administrators become rigidly defensive of their prior declarations, but they seem to believe that their oversight of all that is burned, washed, or breathed is within their control. The “environment” is not a good category for governmentalism­. It is far to vague and vast. While the agency has limited itself to creating mandates for small items like energy, atmosphere, and weather, remember that “environment” also includes your home, your public places, and all of outer space as well.

    How could the founders have missed laws that govern the environment? They must have been idiots. There was really no need to make other categories in the government because if legislators convene to govern “the environment” they can just forget about all those dumb freedoms and give us laws that protect the one thing we all depend on, the environment. I mean, how can we even think about freedom if we can’t breathe?

    It is clear there is a hierarchy in government. At the top, governance of the environment, then governance of services, healthcare, law enforcement, and food assurance, followed by freedom to build and engineer your lives as you like.

    Just so long as anything you choose to do is not good for the environment… ­

    Hmm, that whole thing sounds remarkably like the logic we got from kings who said we could be free as long as we understood that our lives must bend when the crown demanded it.

    Who could ever argue against a clean and perfect world promised by our leaders if we only trust that men must always be managed and kept, lest they smother themselves with their own poor judgement.

    lapedro
    that’s right oh bright nation, burn your food as fuel, ignorant

    Brandon
    Folks need to understand that corn is more than just what we eat on the cob. Now days almost everything that has sweetener added to it is using high fructose corn syrup. So when the supply of corn goes down for things other than subsidized fuel those goods will increase in cost.
    As for the tree huggers idea of using it in gas because it burns cleaner, they forget to notice that it is also less efficient so you just have to burn more gas thus the idea of cleaner gas is lost.

    Reply
  2. osh

    Not necessarily. At least in W. Texas, the cotton farmers, have had a decent yield this time. So, running true to form for a usurping bunch of trash that will do anything to destroy the economy and hence the country, decided it would be in their own best Nazi interests to allow the cotton farmers to plant, pick, seed, and bale, but not SELL their cotton. Its going to have to sit until this shutdown is over. This means zero income for the farmer. Sound familiar? I suppose the problem is, all these farmers take out heavy loans, every year, to supplement the crops….for seed, fertilizer, etc. right on down to the bond money to the power company to turn on the juice to fire up the deepwell pumps to get the water to the cotton. Can’t sell the cotton, can’t pay off the loans….and we all know what happens when the lenders don’t get paid.

    And, once that cotton is picked and baled, it, like gasoline in the pipeline, is an “asset”, considered taxable inventory by the IRS, and whatever the market value,also determined by the IRS. What did the IRS just tell us all? Whether or not the IRS is “up”, YOU still have to pay them their pound of flesh regardless. So now because the Gov has stopped their working capital, the bills to the IRS,hence penalties, will start stacking up also.

    Yep…here we go. More “free” land available to the Chinese coming up pretty soon……. I assume many of the farmers are wanting to know when the foreclosures will start….

    They still remember when Bubba was “in” and he had the Feds buy and import cotton from the chincs at roughly half the market price of the domestic cotton here stateside. These cotton farmers took a hit then too.

    Remember AL Gore told us all when he was still the VP, that “soon” all the food consumed in the USA would be grown by others OUTSIDE the USA….and corn grown for gasoline don’t count towards food does it, especially if its under contract to the One Worlders eh? I’ve noticed fields full of corn in Kansas with the signs along the perifery of “NOT FIT FOR HUMAN CONSUMPTION”. So, reckon this corn is somehow modified genetically to accomplish this?

    Reply
  3. John

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    State officials on Monday announced a new biofuels pilot program, “Fueling Our Future,” to establish more blender pumps at gas retailers around Iowa to sell mid-level ethanol-blended gasoline and biodiesel fuel.
    Gov. Terry Branstad said the public-private partnership will use federal funds to leverage state dollars in the existing renewable fuel infrastructure program to build on the state’s role as a leader in renewable fuels production.

    Gov. Terry Branstad
    This will include the redirection of $250,000 in federal anti-pollution money from the U.S. Department of Transportation to further leverage state dollars in the existing rural renewable infrastructure program, officials said.
    The money will be available to retailers through an application process with the Iowa Renewable Fuels Infrastructure Board and will help provide more blender pumps containing E-30, which is gasoline blended with 30 percent ethanol. This effort will also help improve air quality because ethanol is a cleaner-burning fuel compared to petroleum-based gasoline, said Lt. Gov. Kim Reynolds.
    Only vehicles designated as “flex-fuel” capable can be filled with E-30, which is higher than the recommended amount of ethanol for most vehicles on the road. About 10 percent of all vehicles nationally can use flex fuels , although about a quarter of all new cars and trucks are flex-fuel models and the percentage is growing, officials said.
    Most gasoline currently pumped in Iowa contains a 10 percent blend of ethanol known as E-10. A 30 percent blend of ethanol with gasoline is considered a “sweet spot” in terms of fuel efficiency for motor vehicles, said Monte Shaw, executive director of the Iowa Renewable Fuels Association, an industry group. Iowans can currently purchase gasoline with an 85 percent ethanol blend, known as E-85, although it offers fewer miles per gallon than clear gasoline without ethanol.
    “This pilot program will help provide Iowans with additional access to higher blends of ethanol and biodiesel, which will help our farmers, communities and economy in producing, processing and profiting,” as well as environmental benefits, Branstad said.
    Under the state’s renewable fuels infrastructure program, reimbursement to businesses can be for 50% of the costs for specific components of a project with a three- year commitment required to sell certain renewable fuels.
    A five- year commitment to store and sell renewable fuels and install certain equipment can result in up to 70% reimbursement for specific equipment or installation costs. Certain biodiesel terminal equipment and/or infrastructure can receive funding for up to $100,000 per project.
    Branstad described Iowa as a leader in the production and use of renewable fuels and he expressed hopes other Midwest states will follow Iowa in expanding the market for mid-level biofuels blends.
    The Iowa initiative will be supported b y the Iowa Department of Agriculture and Land Stewardship, the Department of Transportation, Iowa State University, and the Iowa Renewable Fuels Infrastructure Board. The governor was joined at a news conference announcing the program by Agriculture Secretary Bill Northey and Iowa DOT Director Paul Trombino.
    Iowa State University will evaluate consumer perceptions and the impact of increased access to mid-level fuel blending options, including any impacts on air quality, officials said.

    State officials pushing to expand biofuels sales at Iowa gas retailers
    10:37 AM, Oct 14, 2013 | by William Petroski |
    Comments
    Categories: Green Fields: Agriculture and Alternative Energy, Iowa Politics Insider





    State officials on Monday announced a new biofuels pilot program, “Fueling Our Future,” to establish more blender pumps at gas retailers around Iowa to sell mid-level ethanol-blended gasoline and biodiesel fuel.
    Gov. Terry Branstad said the public-private partnership will use federal funds to leverage state dollars in the existing renewable fuel infrastructure program to build on the state’s role as a leader in renewable fuels production.

    Gov. Terry Branstad
    This will include the redirection of $250,000 in federal anti-pollution money from the U.S. Department of Transportation to further leverage state dollars in the existing rural renewable infrastructure program, officials said.
    The money will be available to retailers through an application process with the Iowa Renewable Fuels Infrastructure Board and will help provide more blender pumps containing E-30, which is gasoline blended with 30 percent ethanol. This effort will also help improve air quality because ethanol is a cleaner-burning fuel compared to petroleum-based gasoline, said Lt. Gov. Kim Reynolds.
    Only vehicles designated as “flex-fuel” capable can be filled with E-30, which is higher than the recommended amount of ethanol for most vehicles on the road. About 10 percent of all vehicles nationally can use flex fuels , although about a quarter of all new cars and trucks are flex-fuel models and the percentage is growing, officials said.
    Most gasoline currently pumped in Iowa contains a 10 percent blend of ethanol known as E-10. A 30 percent blend of ethanol with gasoline is considered a “sweet spot” in terms of fuel efficiency for motor vehicles, said Monte Shaw, executive director of the Iowa Renewable Fuels Association, an industry group. Iowans can currently purchase gasoline with an 85 percent ethanol blend, known as E-85, although it offers fewer miles per gallon than clear gasoline without ethanol.
    “This pilot program will help provide Iowans with additional access to higher blends of ethanol and biodiesel, which will help our farmers, communities and economy in producing, processing and profiting,” as well as environmental benefits, Branstad said.
    Under the state’s renewable fuels infrastructure program, reimbursement to businesses can be for 50% of the costs for specific components of a project with a three- year commitment required to sell certain renewable fuels.
    A five- year commitment to store and sell renewable fuels and install certain equipment can result in up to 70% reimbursement for specific equipment or installation costs. Certain biodiesel terminal equipment and/or infrastructure can receive funding for up to $100,000 per project.
    Branstad described Iowa as a leader in the production and use of renewable fuels and he expressed hopes other Midwest states will follow Iowa in expanding the market for mid-level biofuels blends.
    The Iowa initiative will be supported b y the Iowa Department of Agriculture and Land Stewardship, the Department of Transportation, Iowa State University, and the Iowa Renewable Fuels Infrastructure Board. The governor was joined at a news conference

    Reply

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