Why Nebraska’s Governor Is a Champion of Biofuels

June 07, 2018

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(Urban Air Initiative) Nebraska Governor Pete Ricketts recently declared May as Renewable Fuels Month to draw attention to clean burning biofuel options. He’s focused on grassroot efforts to educate and expand access of mid-level blends for his citizens. Urban Air believes states and grassroots efforts can help pave the way and open the market to mid-level blends.

Urban Air asked Governor Ricketts a series of questions about how others can follow Nebraska’s lead and push higher ethanol blends locally. Below are some of his answers.

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Governors can also lead by example. In Nebraska, we require all vehicles purchased by the state to be flex fuel vehicles or E15 compatible. We have also converted state fuel dispensers from E10 to E15 in many locations, so our fleet runs on E15 or E85 whenever possible. And we have a request in front of the EPA right now to allow the State of Nebraska to conduct a pilot project with our state vehicle fleet and higher ethanol blends.

Nebraska continues to support fuel infrastructure at the retail level to increase ethanol fueling sites and support higher ethanol blends. I‘ve offered to talk with fuel terminal operators to encourage 15 percent ethanol blending – a customer preference – to make it easier to access the E15 product at the terminal. We also evaluate proactive steps taken by other states, including incentives or standards that encourage biofuel use. A trend toward increased integration of biofuels in the fuel we use in the state is one that will continue to generate cost savings for consumers and state government.

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It is clear the EPA needs to do more, and I have expressed our concerns about the biofuel waivers they have granted to refiners.

Scott Pruitt is accessible and responsive to my inquiries. During our conversations in Washington DC and at the Nebraska Capitol, I have made clear the need for RVP relief for E15 and higher ethanol blends. I have also noted the need for revisions in EPA’s fuel modeling, and RIN price issues can be resolved by introducing more ethanol in the domestic market.

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For about a month, the EPA has been reviewing a request to approve a pilot project using higher ethanol blends in state vehicles.

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This project is a multi-state collaboration that will allow us to gain data relevant to the use of higher ethanol blends. Nebraska is taking the lead on this project but we are closely coordinating this activity with several other key states in the Governors’ Biofuels Coalition, including Iowa, Kansas, Minnesota, and South Dakota. We consider the Nebraska pilot project to be a template that other states could use to gain approval for similar fuel testing.

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In many cases, ethanol producers work directly with marketers to reduce the cost of transporting ethanol to retail locations. Fuel blending programs outside terminals are getting traction via flex fuel systems and innovative marketing practices adopted by a few wholesalers who have retail locations. Favorable ethanol fuel pricing is a key factor in consumer acceptance.

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Funding infrastructure development is one important partnership between state government, ethanol producers and advocacy organizations. As new fuel choices are offered at more retail locations, consumers become better acquainted with these options and the lower prices. Benefits like higher octane, fewer toxic emissions, and lower cost have a positive influence on consumer acceptance.

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We need to do more around educating the public. Certainly, the air quality and health benefits of cleaner-burning fuels are important.

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Biofuel advocates, transportation planners, and health professionals should continue to emphasize the role biofuels play in mitigating transportation-related pollution. READ MORE

United States : Biofuels Grow Nebraska (Futures Tradingcharts.com)

From Futures Tradingcharts.com: In our ag economy, biofuels are playing an increasingly important role in growing more opportunity for the next generation of farm families. With economic uncertainty and low commodity prices, ethanol not only helps build reliable demand for our corn, but it also helps our country achieve greater energy independence. Nebraska now has the capacity to produce over 2.5 billion gallons of ethanol. The ethanol industry directly employs over 1,300 Nebraskans and indirectly supports many more jobs. Because of this, we have been spurring investment in ethanol by increasing flex fuel infrastructure, expanding trade opportunities, and advocating for biofuels at the federal level.

Over the summer, I have been traveling the state to highlight the availability of new flex fuel infrastructure. In the past couple of years, my team and the Nebraska Energy Office has been working with the Nebraska Corn Board and Nebraska Ethanol Board to install more flex fuel pumps in communities across the state. Recently, I visited Grant where Aurora Cooperative has launched a new flex fuel pump. In May, I attended a ribbon cutting event for new flex fuel pumps at the Bosselman Travel Center in Grand Island. As new fuel choices are offered at more retail locations, consumers become better acquainted with these options and the lower prices. These new pumps will distribute thousands of gallons of biofuels to the many travelers crossing our state.

International trade is another important key to growing biofuels. Last September, Todd Sneller of the Nebraska Ethanol Board and Duane Kristensen of Chief Ethanol in Grand Island joined my trade mission to Japan. There they visited with the U.S. Grains Council about the Japanese market, which has since opened to American ethanol.

The U.S. Grains Council, which the Nebraska Department of Agriculture and Nebraska Corn Board are members of, has been undertaking a major effort to expand exports into Japan. In 2015, I led another trade delegation to Denmark to visit the headquarters of Novozymes, a company that produces enzymes used in ethanol production. During the visit, we urged the company to continue to expand their investment in Nebraska. Since that visit, Novozymes has invested about $50 million more into Nebraska. These stories illustrate why it is so important that our global partners hear directly from Nebraskans on trade missions, so we can continue to open up more markets and attract new investments.

We have also been advocating with the federal government in Washington, D.C. to cut red tape and allow more freedom to market and use higher ethanol blends. Higher ethanol blends create more demand for our fuels and commodity inputs. The Environmental Protection Agency (EPA) is the key regulator of biofuels at the federal level. Over the last year, we have been one of the voices calling for year-round sales of E-15. Right now, E-15 cannot be sold during the summer months, limiting our ability to market more of our ethanol product. I recently met with acting EPA Administrator Andrew Wheeler to underscore the urgency behind approving E-15 sales all year long.

I also have a request into the EPA for a pilot program to test high ethanol blends like E-25 and E-30 in the Nebraska state government fleet. I have already directed state agencies to order flex fuel vehicles when possible and other vehicles must be compatible with E-15. The state has also switched over one of our main fuel pumps from E-10 to E-15, and we also have E-85 available. We want the opportunity to consume more of the great fuel produced right here in Nebraska.

This month, I submitted testimony on the latest round of biofuels production levels being set by the EPA. My administration will continue to urge the EPA to maintain a robust commitment to biofuels, so the next generation of farm families has the predictability they need to grow agriculture and grow Nebraska. If you have suggestions on how we can expand ethanol in Nebraska, I hope you will write me at pete.ricketts@nebraska.gov or call 402-471-2244. READ MORE