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Governors' Biofuels Coalition
NEWS UPDATE May 4, 2012

E15 battle continues with infrastructure concerns

Amanda Peterka, E&E reporter  •    •  Posted May 4, 2012

U.S. EPA made a premature decision on E15 and has done an inadequate job addressing the concerns of engine manufacturers and fuel retailers, the oil industry said today. On a conference call, the American Petroleum Institute warned that the nation’s retail fuel infrastructure is not equipped to handle E15, a blend of gasoline mixed with 15 percent ethanol. Bob Greco, the American Petroleum Institute’s director of downstream and industry operations, further called the introduction of E15 only a temporary solution, at best, to meet a flawed federal renewable fuel standard. [ read more … ]

Tougher CAFE standards will take $57B bite out of highway fund — CBO

Jason Plautz, E&E reporter  •    •  Posted May 4, 2012

Proposed rules that would double fuel economy standards by 2025 would also take $57 billion out of the already depleted highway trust fund, the Congressional Budget Office says in a new report. The report from the nonpartisan CBO found that the reduction in fuel consumption as a result of proposed corporate average fuel economy (CAFE) standards would mean gasoline tax receipts would eventually fall by 21 percent by 2040. [ read more … ]

Panetta links environment, energy and national security in groundbreaking speech

Annie Snider, E&E reporter  •    •  Posted May 4, 2012

Climate change and oil dependence are issues of national security, and the Pentagon will take a lead role in shifting the way the country uses energy, Defense Secretary Leon Panetta said last night. In remarks made at a Washington, D.C., reception held by the Environmental Defense Fund, Panetta became the highest-level official to draw a clear line between environmental, energy and security issues since their relationship was formally established in Pentagon strategy two years ago. [ read more … ]

Study finds RFS likely to require modification

Kris Bevill, Ethanol Producer Magazine  •    •  Posted May 4, 2012

Persistently lagging sugarcane ethanol production in Brazil could make it very expensive for obligated parties to meet biofuels volume requirements in the U.S. as early as this year, according to energy consulting firm Hart Energy. The company recently released a study titled “U.S. & Brazil Ethanol Outlook to 2022,” which finds that without adequate supplies of Brazilian ethanol, the cost of compliance with the renewable fuel standard (RFS) and California’s Low Carbon Fuel Standard could become surprisingly high as blenders compete for tight supplies of Brazilian ethanol to meet advanced biofuel requirements. [ read more … ]

Iogen, Shell announce layoffs, won’t build cellulosic plant

Holly Jessen, Ethanol Producers Magazine  •    •  Posted May 4, 2012

Shell and Iogen Corp., joint owners of Iogen Energy Corp., said Iogen Energy had agreed to a new plan that would refocus its strategy and activities, leading to a smaller development program. Still, Iogen Corp. will continue to employ about 110 people at the Ottawa location. The company “plans to expand its line of offerings with new technology for the production of advanced and cellulosic biofuels,” the press release said. In addition, Iogen Corp.’s industrial enzyme business for the grain processing, animal feed, pulp and paper and textiles industries will not be affected by the changes. [ read more … ]

Note: News clips provided do not necessarily reflect the views of coalition or its member governors.