SD Corn

Is it fair to say to that the United States of America is in a slump? By slump, I mean the lack of progress our country has experienced after all of the clean energy debates and legislation in the past year. The EPA has delayed a move to E 15 in non-flex fuel vehicles twice, we have witnessed the worst oil spill ever and our development of futuristic biofuels is not any closer to commercial production.

Monday, the American Coalition for Ethanol, National Corn Growers Association and the Renewable Fuels Association sent a letter urging, Lisa Jackson of the EPA to approve a temporary move to E 12 in non-flex fuel vehicles while they continue to study the effects, or lack of effects E 15 has on vehicles. This makes sense on so many levels as it would benefit the U.S. economy and environment, but I don’t recommend holding one’s breathe.

A move to E 12 would increase domestic ethanol production pushing the industry past the “blend wall” and would stimulate rural economies through job growth and the purchase of additional bushels of corn. The additional production and use of American ethanol moves us closer to a clean-energy economy and further lessens our dependence on foreign oil.

Most importantly, America’s ethanol industry and farmers are more than capable to move our country well past the E 10 wall with bountiful crops due to increasing yields. Farmer’s are continuing to produce more with less providing plenty of corn to meet the demands for food, feed, fiber and fuel.

The ethanol industry is currently awaiting an EPA decision that would move the conventional ethanol blend limit from E 10 to E 15. A decision is expected sometime in mid 2010. Of course there is plenty of opposition, but a move from E 10 to E 15 would benefit the United States in a number of ways including the economy, environment and energy security.

Economy

According to a study by North Dakota State University, move from E 10 to E 15 would create and support more than 136,000 new jobs and inject $24.4 billion into the American economy annually. What could our country use right now more than jobs? Especially good paying jobs based in rural communities.

Research by the Nebraska Corn Growers, shows that higher blends of ethanol provide better energy conversion within an engine than other fuels, meaning you can travel farther on less energy. This not only saves you money, but it puts 100% of that money back into the local economy.

Environment

 According to the United States Department of Energy, the use of E 15 instead of conventional gasoline would reduce greenhouse gases by more than 40 million tons of CO2 per year or the greenhouse gas emissions equivalent to removing 10.5 million cars from the road each year.

Energy Security

Each year the United States sends billions of dollars to unstable countries to meet our energy needs. An increase in the conventional ethanol blend will lessen our dependence on foreign oil and increase the production of our own clean-burning, renewable fuel. Growth in the current ethanol industry will also lead the way for futuristic biofuels.

“Homegrown biofuels can do even more to reduce our dependence on imported energy sources if the EPA approves E15,” said United States Senator, John Thune of South Dakota. “Renewable fuels create jobs in rural South Dakota and keep our energy dollars in the country. Intermediate blends like E15 will expand the biofuels industry and help pave the way for cellulosic ethanol.”

Wednesday night, millions of people watched President Barack Obama give the annual State of the Union Address and he touched on some great topics: jobs, education, economy, climate change, health care, the war on terror and clean, renewable energy.

Many of those issues could benefit from something already available and ready to expand…United States Ethanol. A clean-burning, home-grown fuel that is ready to replace our addiction to foreign oil.

 “We need to put more Americans to work building clean energy systems,” said Obama.

A move from E 10 to E 15 (which may be decided on sometime in June of 2010) alone would create 136,000 new jobs according to a University of North Dakota Study. Adding additional infrastructure like the proposed ethanol pipeline from South Dakota to New Jersey would create 80,000 temporary jobs and 1,100 full-time positions.

Wednesday afternoon, before President Obama’s speech,  Renewable Fuels Association CEO, Bob Dinneen, said, “America’s ethanol producers stand with the President, ready to provide good paying jobs and economic opportunity in a cleaner and more sustainable manner. “In just the past 10 years, ethanol production has helped create hundreds of thousands of new jobs for engineers, construction workers, chemists, accountants, maintenance supervisors, and countless others. With new technologies on the precipice of commercialization, this industry is once again poised to bring unparalleled economic opportunity to small, rural communities all across the nation.”

Obama went on to say, “No area is more ripe for investments than energy…”

Currently, Magellan and other partners are waiting on investments that would allow them to build a pipeline transporting ethanol from South Dakota to New Jersey. This additional infrastructure would allow an increase in production, not only in South Dakota, but all along the pipeline and expand the usage of clean energy from the Midwest to the East Coast. Other needed infrastructure investments for biofuels include additional ethanol blender pumps providing multiple blends of ethanol and non-ethanol fuel giving the consumer a choice when filling his or her tank.

Among the topics, Obama expressed his interest in making incentives for the users of clean energy.

“…To create more of these clean energy jobs, we need more production, more efficiencies and more incentives…”

Those incentives must include renewing VEETEC, sometimes referred to as the “blender’s credit,” a tax credit of 45 cents for every gallon of pure ethanol blended in the United States. This economically encourages more gas stations to sell clean-burning fuel that benefits our environment and is made right here in the United States.

“The nation that leads the clean energy economy will be the country that leads the global clean economy and America must be that nation,” said President Obama. “I will not accept second place.”