Tuesday, September 27, 2011

HAPPY WEDNESDAY READERS!


I will not post on Thursday as I will be giving a presentation on ethanol gas issues to the Eunice, Louisiana Rotary Club midday on Wednesday, and returning home Thursday afternoon. Will post a blog for Friday.

No new ethanol news........thanks goodness, no new stations to report in the past week that has converted to ethanol gas.

Here is another article that shows how the response has been to the new 15% ethanol gas. This one is from the small engine manufacturers lobby:

OPEI Files Legal Challenge to E15 Misfueling Rule; EPA's Weak Ethanol Label Inadequate to Avoid Misfueling, Damage to Products

P OPEI Files Legal Challenge to E15 Misfueling Rule; EPA's Weak Ethanol Label Inadequate to Avoid misfueling, Damage to Products 09/21/2011

OPEI Files Legal Challenge to E15 Misfueling Rule;

EPA’s Weak Ethanol Label Inadequate to Avoid Misfueling, Damage to Products

Alexandria, Va. September 21, 2011 – The Outdoor Power Equipment Institute (OPEI), along with automakers and marine manufacturers, today announced a formal legal challenge to the U.S. Environmental Protection Agency’s (EPA) “Regulation to Mitigate Misfueling” rule which was meant to address concerns about 15 percent ethanol blends and non-road products and older model-year vehicles.

OPEI and partner groups maintain that EPA’s weak labeling effort is completely inadequate to protect consumers and avoid potential misfueling and damage to millions of legacy products not designed to run on any ethanol fuel higher than E10.

“We are asking that the EPA do more to protect the consumer. We need to educate the public on a new fuel entering the market that is about to fundamentally change how we purchase and dispense gasoline. And, we need to ensure that consumers can still find E10 for the millions of product - lawnmowers, chainsaws, motorcycles, snowmobiles, ATVs and UTVs, boats and older cars – that still use an E10 legacy fuel,” said Kris Kiser, President and CEO of the Outdoor Power Equipment Institute.

OPEI points out that the EPA’s prior experience with fuel transitions and misfueling demonstrates that labeling alone is insufficient to prevent misfueling. As the EPA led the transition to unleaded fuels, the Agency reported a misfueling rate of nearly 15 percent almost ten years after the introduction of unleaded gasoline - even with a physical barrier at the pump.

“EPA even denied our petition to mandate the continued availability of E10, so consumers will still be able to purchase E10 at their local gasoline stations. Consumers are really on their own at this point, and we just think that is unfair and potentially harmful from both a safety and economic perspective,” said Kiser.

(OPEI says that a simple E15 label is completely inadequate to avoid misfueling and does not protect consumers and business owners from potential equipment damage and safety risks. OPEI says the EPA should do more.)

Background

Growth Energy, an ethanol industry trade group, petitioned the EPA in March 2009 to raise the limit on ethanol in gasoline from 10 to 15 percent. Several engine product and auto manufacturers as well as others urged EPA to be deliberative in its review process, assuring thorough and adequate testing to ensure that E15 would not harm existing products or pose safety risks. By approving E15 use in a small subset of engines on the road, there is a high risk that consumers will unknowingly or mistakenly put E15 in products for which it has not been approved.

In March 2011, auto, marine, motorcycle, outdoor power equipment, personal watercraft and snowmobile groups filed a petition for rulemaking today asking the Environmental Protection Agency (EPA) to ensure the continued sale and availability of gasoline blends of no greater than 10 percent ethanol (E10) for the 400 million engine products used by tens of millions of people every day in the U.S.

About OPEI

The Outdoor Power Equipment Institute (OPEI) is an international trade association representing more than 80 engine and equipment manufacturers worldwide in the utility, forestry, landscape, and lawn and garden industry. OPEI is a recognized Standards Development Organization for the American National Standards Institute (ANSI) and active internationally through the International Standards Organization (ISO) in the development of safety standards. For more information, visit www.OPEI.org.

"Pete" Landry.............comments welcome at way2gopete@yahoo.com

Monday, September 26, 2011

HAPPY TUESDAY READERS!


This article appeared just a few days ago.......it indicates that livestock states are getting more and more frustrated that feed prices are continuing to go sky high due to corn being diverted to ethanol manufacturing, driving up the feed costs.

U.S. House bill would lower mandate to use ethanol

Thu Sep 22, 2011 10:25pm GMT

WASHINGTON, Sept 22 (Reuters) - Legislation was being drafted in the U.S. House of Representatives that would reduce the federal mandate to use fuel ethanol when corn supplies are tight, a congressional staff worker confirmed on Thursday.

The staffer said a bill was under consideration but declined to discuss details.

The Renewable Fuels Standard guarantees a share of the motor fuel market for corn-based ethanol. Livestock and dairy producers say the mandate gives a financial advantage to ethanol makers and unfairly boosts the cost of livestock feed.

According to consulting firm MF Global, the legislation would reduce the ethanol mandate by 25 percent when the corn stocks-to-use ratio is projected to be less than 7 percent and reduce it by 50 percent when the ratio would be 5 percent or less, a bare-bones level for supplies.

Representatives Bob Goodlatte, a Virginia Republican, and Bob Costa, a California Democrat, were the likely sponsors. They are from districts with large livestock industries.

The ethanol mandate for this year is 12.6 billion gallons. Production expected to exceed 13.5 billion gallons, due to exports and high oil prices, which make ethanol attractive.

A dozen bills involving ethanol have been filed in the House. Some would encourage ethanol use while others would limit the portion of ethanol in fuel or repeal a tax credit for the fuel. One bill would repeal the ethanol mandate. (Reporting by Charles Abbott; Editing by David Gregorio)


"Pete" Landry.................comments welcome at way2gopete@yahoo.com


Sunday, September 25, 2011

HAVE A GREAT MONDAY READERS!

No ethanol issues today............just FOOTBALL!

What a weekend for college and pro football! The LSU victory against West Virginia was not pretty, at least for the LSU defense, which gave up more passing yards than they have in a long, long time; BUT, the offense and special teams did what it needed to do to win. And, what a great win for the Saints today against a very good Houston team.

The AP poll has now moved LSU to #1, leap frogging Alabama and Oklahoma! The USA Today and Coaches poll comes in tomorrow. Here is the AP's top 10:

AP Top 25


I thought the following article today from the Wall Street Journal was both honest and also humorous.........the rest of College Football has it appears FINALLY conceded that the SEC is the BEST Conference in the nation:

[cfoot0925]Associated Press

LSU's Morris Claiborne returns a punt for a touchdown against West Virginia. After all, LSU plays in the SEC and West Virginia doesn't.

The rest of college football formally surrendered to the Southeastern Conference Sunday, ending a decades-long war that had become hopelessly one-sided.

The surrender took place just outside Appomattox, Va. SEC officials declined to explain why this site was chosen.

"What began 85 years ago in Pasadena has been finished today," the SEC said in a statement, referring to Alabama's 1926 Rose Bowl victory over Washington, which established Southern schools as a threat. "This is our sport now."

The commissioners of major-college football's other 10 conferences made the decision to capitulate in an emergency conference call Saturday night, following LSU's 47-21 demolition of West Virginia. The rout was the latest in a series of unfortunate encounters between SEC schools and supposedly quality opponents, including LSU-Oregon Sept. 3, Alabama-Michigan State in January and the last five national-title games, only one of which was in doubt at the end.

The terms of the surrender were released by the SEC. They include a number of reforms that seek to restore some dignity to the rest of college football, while giving the SEC its proper due:

The national championship: The Bowl Championship Series title game will continue to be held, but just as a matter of ceremony and to stimulate the economy. The real national-championship game will be designated each year by the SEC. This year it's LSU at Alabama, Nov. 5.

National-championship rematches: The SEC also reserves the right to campaign for an LSU-Alabama rematch in the BCS "title" game if the initial meeting is close and there are no other undefeated major-conference schools at season's end. The rest of college football will not bring up 2006, when SEC partisans pilloried the idea of an Ohio State-Michigan title-game rematch.

The No. 1 ranking: The rest of college football will concede that Oklahoma is not the nation's best team, even though the Sooners were the preseason No. 1, are 3-0 and have won the hardest true road game thus far (at then-No. 5 Florida State). LSU is now No. 1 in the Associated Press rankings, having done even more (beating Oregon in Dallas and West Virginia on the road).

Roster management: SEC programs will conduct seminars on how to use oversigning to build a better roster.

The chant: The SEC will ask its fans to wait until game's end to start chanting "S-E-C!", after the TV cameras have been turned off and the defeated team's fans have filed out of the stadium. This provision was issue No. 1 on the non-Southern schools' agenda. "Our alumni all across the country say the same thing," said an official representing the other major conferences. "Make it stop."

Realignment: West Virginia will remain in the Big East now that it knows what it would be getting into in the SEC. Texas A&M is still welcome to join, and Missouri may be considered as well, although both schools have been reminded that they would be forfeiting the right to ever win another conference championship in football, considering they can't even win an inferior Big 12. (A&M's chances of winning its first Big 12 title since 1998 took a serious hit in the Aggies' 30-29 come-from-ahead loss Saturday to Oklahoma State.)

Revenue sharing: The SEC will seize some TV revenue from the Pac-12, which has somehow wound up getting an average of $250 million annually from ESPN and Fox, while the average annual value of the SEC's deals with ESPN and CBS is about $205 million—even though the SEC has won an unprecedented five straight national titles.

Academics: Supporters of Pac-12, Big Ten and Atlantic Coast Conference schools will stop playing the academics card—that is, that their schools rank higher in research expenditures and reputation than the SEC's do.

Arkansas-Ohio State: Although Ohio State's 2011 Sugar Bowl victory over Arkansas has been vacated because of the Buckeyes' rules violations, and even though Arkansas is no Florida or LSU (i.e., the sort of A-list peer Ohio State should aspire to beat), the SEC will permit Buckeye fans to fondly remember that game. (Although OSU's official bowl record against the SEC remains 0-9.)

The SEC's programs hailed the surrender as a long-overdue acknowledgment of their obvious superiority. The non-Southern teams expressed relief that the nonconference portion of the season is basically over, and that the sides won't meet again for the most part until December and January.

The surrender was quickly ratified by 107 of the 108 non-SEC schools, with Boise State abstaining.

Write to Darren Everson at Darren.Everson@wsj.com


"Pete" Landry..............comments welcome: way2gopete@yahoo.com



Saturday, September 24, 2011

HAPPY SATURDAY & A GREAT WEEKEND READERS!


Big football weekend. Alabama will face their first real test when they take on Arkansas at 2:30 pm today. This will be a very interesting game to see as it relates to what LSU will be seeing towards the end of the season.

Meanwhile, LSU takes on West Virginia on ESPN on ABC at 7:00 pm. This will be the third top 25 opponent LSU plays this season. LSU is favored by 6 points. If our Tigers beat West Virginia in a convincing fashion, it could move them to the #1 ranking on Monday.

GEAUX TIGERS….. GEAUX TIGERS…..GEAUX TIGERS

I think you will find the following article rather interesting. It's a recent study that studies the cost of food products substantial increase in prices in recent years to ethanol production.


Let Them Eat Ethanol and Cash

BY GREG LINDSAY Today (9/22/11)

How biofuels and speculation are driving food prices to scary new heights

Why have global food prices spiked not once, but twice in the last three years, raising the specter of famine and triggering worldwide food riots--including the Arab Spring? Many explanations have been floated, including climate change-related droughts in Australia, volatile oil prices, “food security” export restrictions, and last but not least, feeding China’s strategic pork reserve.

But according to a scientific paper released this morning by the New England Complex Systems Institute, there are only two factors that matter: ethanol and financial speculation.

The former is easier to prove. A drop in the bucket only a decade ago, ethanol will consume a remarkable 40 percent of the U.S. corn crop this year, comprising 16% of world corn production and 4% percent of total grain production overall. The paper’s authors mapped the rise of ethanol production to the steady climb of the United Nations Food and Agriculture Organization’s Food Price Index since 2004 and found a close fit, much closer than Australia’s droughts (too small), oil price spikes (too late), or China’s craving for pork bellies (big, but not big enough). “Ethanol is much bigger. It’s bigger by a factory of 20,” says Yaneer Bar-Yam, one of the paper’s authors and the president of NECSI.



The paper’s second claim is more controversial. While ethanol is responsible for the long-term increase in baseline prices, it can’t explain the bubble-and-bust dynamics of 2007/2008 and 2010/2011. So NECSI’s researchers set out to build an all-purpose mathematical model of speculative bubbles, feeding it price data to see if there was another close fit.

What they found refutes the OECD’s findings and confirms the suspicions of Harpers’Frederick Kaufman --the repeal of the Commodity Exchange Act of 1936 and the deregulation of commodity futures in 2000 transformed the futures markets from an instrument of liquidity to a place to park one’s money. Instead of being a place where farmers and agricultural businesses set reasonable prices, the markets have become just another place for speculation.

“That regulation had limited the ability of investors to invest beyond a certain amount,” says Bar-Yam. “Its repeal enabled the index funds, which in turn opened the door to people who were not in the agricultural investment business to go into the commodities markets of corn, wheat, and so on.”

All of that money--commodity index holdings soared from $13 billion in 2003 to $317 billion in 2008--inevitably caused distortions in the market. “If you look at our figures, you’ll see there’s a huge difference between the futures price or the spot price and what should be the equilibrium one,” Bar-Yam says.

The authors’ recommendations are straightforward and immediate--to drive down prices for the world’s poor, governments must restore financial regulations (including the Commodity Exchange Act) and begin winding down ethanol production. “There is a moral imperative here,” says Bar-Yam. “And from an economic standpoint, efficient allocation and optimality are desirable things,” neither of which are currently being served. And if they don’t, as the authors noted last month in a related paper, the turmoil of Arab Spring may go global.


Read more columns like this in our continuing series, The Butterfly Effect

I don't post on Sundays........so, be back on Monday. Have a GREAT weekend!

"Pete" Landry.................comments welcome at way2gopete@yahoo.com



Thursday, September 22, 2011

HAPPY FRIDAY READERS!


Another question I am asked from time to time is "where can I find an ethanol test kit". I've updated an article I wrote back in 2009 to include another supplier I recently learned about.

I know there are certainly probably more ethanol test kits on the market than the ones I list in this article. These can be a starting point to determine which one works for your situation and how much you are willing to pay for a test kit.

These are several sites and companies I’ve found which sell kits to test for ethanol in gasoline. I’m sure there may be more. I personally own the test kit sold by “Fuel-Testers” and have used it frequently. It is simple to use and produces easily viewed test results. It is easily cleaned and can be used over and over. The kit contains a “Quik-Check solution” which gives you a quick “spot test” by adding a single drop of the check solution to the fuel. If the color turns bright blue, ethanol is present. Instructions are included with the kit. There are other test kits that work very well also. I suggest you view the websites and make your own mind as which test kit best suits your needs and costs.

All ethanol fuel test kits are based on the premise that the ethanol in the gasoline will migrate to the water in the test kit tube. The tubes are calibrated and require that a certain amount of clean water be added first, then the prescribed amount of the gasoline to be tested. Then the tube is capped, shaken several times, and then allowed to settle (2-5 minutes usually). After the water/gasoline layers phase separate, the increase in volume of the lower water layer, if any, will be an indication of the amount of ethanol in the fuel tested. Most test kit tubes are calibrated to give you the results in percentage of ethanol present, if any. The test kit should be cleaned after use and stored for the next use.

CAUTION: As you are aware, gasoline is very flammable, so handle accordingly. Use care to avoid any open flame and avoid static electrical charge situations that could create a spark.


Ethanol fuel test kits:

Company: Outboard Wizard Marine Shop (678) 935-1998)

Link: http://www.theoutboardwizard.bizhosting.com/alcohol_fuel_test_kit.html

Cost: $24.95 + ? $ S+H

================================================

Company: Fuel-Testers (678) 935-1998

Link: http://www.fueltestkit.com/

Cost: $ 24.95 + $7 S&H

================================================

Company: Etha-Test

Link: http://www.bidlist.org/Etha-Test/

Cost: $8.95 + S&H

===========================================

Company: EAA (920-426-4843)

Link: http://www.eaa.org/autofuel/autogas/test_kit.asp

Cost: $ 25.00 + $5 S&H

=================================================

Company: Ebay Motors

Link: http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&item=270606859688&crlp=1_263602_263622&ff4=263602_263622&viewitem=&guid=924e0d2b1260a0e201903730fe7d9a25&rvr_id=133367129600&ua=WXS%3F&itemid=270606859688

Cost: $ 8.95 + $2 S&H

=================================================

Ethanol Fuel Testing

Determining ethanol content in blended gasoline fuels

by James W. Hebert (credit given to Mr. Hebert)

This article presents a simple and inexpensive test procedure for determining the alcohol and water content of blended gasoline fuels.

Blended Gasoline

More and more gasolines sold for automotive and marine use are blended fuels consisting of gasoline and ethanol in a solution. In most cases the ethanol content of the fuel is less than ten-percent. In some states there is no labeling requirement, so consumers have no way to determine if the fuel they are purchasing contains any ethanol at all. Generally, in all states fuels which contain greater than ten-percent ethanol have to be labeled at the retailer's pump. Because many boaters use older engines which were not designed to run on blended fuels, they may wish to avoid any gasoline blends with ethanol.

How much water a fuel can hold in solution before phase separaton occurs depends on its blend. Gasoline blended with ethanol can hold more water in solution than pure gasoline. Gasohol, or E10, or gasoline and ethanol in a 9:1 blend, can hold about 0.5-percent water in solution. Any more water content and the water will separate. This principle forms the basis for a simple test procedure.

Test Procedure

A simple test can determine the ethanol or water content of a fuel sample. All that is needed is a sample of the fuel, some water, and a test tube or graduated cylinder. The procedure is as follows:

  • Obtain a sample of the fuel to be tested
  • Fill a test tube or graduated cylinder with water in a volume of 25-percent of the total volume
  • Fill the remaining 75-percent volume of the test tube or cylinder with the sample fuel
  • Install a rubber stopper and shake the test tube or cylinder to thoroughly mix the test sample with the water.
  • Place the test tube or cylinder in an upright and stable position, and allow the solution to separate into two phases.
  • If the test sample of fuel contained any water or alcohol, it will have come out of solution with the gasoline and into solution with the water. Observe the position of the phase boundary and deduce the change in volume according to the formula below, or
If using a calibrated cylinder, read the alcohol content of the original sample from the graduations on the cylinder


"Pete" Landry............................comments welcome: way2gopete@yahoo.com

Wednesday, September 21, 2011

HAPPY THURSDAY READERS!


I hope some of our Mississippi readers were able to tune into the Paul Gallo radio talk show Wednesday morning on "SuperTalk Mississippi" radio. I participated for about 25 minutes from about 8:15 to 8:45 am answering Paul's questions and also call in questions from listeners. I do hope it turned to be informative for listeners. The "SuperTalk" website is: www.supertalk.fm

I continue to get asked why is ethanol gas being sold and what determines how much ethanol gas must be sold. I originally developed the following article in 2009 and updated it a few days ago. I do hope this answers the questions.


Why is ethanol gasoline being sold?

By "Pete" Landry
December 21, 2009 (Updated 9/20/11)



The Federal Environmental Protection Agency Regulation (EPA-40CFRPart80) titled “Regulation of Fuels and Fuel Additives: Renewable Fuel Standard Program” of 2005 mandates the use of “renewal fuels” in motor fuels. The following is a brief summary taken directly from the regulation:

“SUMMARY: Under the Clean Air Act, as amended by Section 1501 of the Energy Policy Act of 2005, the Environmental Protection Agency is required to promulgate regulations implementing a renewable fuel program. The statute specifies the total volume of renewable fuel that the regulations must ensure is used in gasoline sold in the U.S. each year, with the total volume increasing over time. In this context, this program is expected to reduce dependence on foreign sources of petroleum, increase domestic sources of energy and help transition to alternatives to petroleum in the transportation sector. The increased use of renewable fuels such as ethanol and biodiesel is also expected to have the added effect of providing an expanded market for agricultural products such as corn and soybeans. Based on our analysis, we believe that the expanded use of renewable fuels will provide reductions in carbon dioxide emissions that have been implicated in climate change. Also, there will be some reductions in air toxics emissions such as benzene from the transportation sector, while some other emissions such as oxides of nitrogen are expected to increase. This action finalizes regulations designed to ensure that refiners, blenders and importers of gasoline will use enough renewable fuel each year so that the total volume requirements of the Energy Policy Act are met. Our rule describes the standard that will apply to these parties and the renewable fuels that qualify for compliance. The regulations also establish a trading program that will be an integral aspect of the overall program, allowing renewable fuels to be used where they are most economical while providing a flexible means for obligated parties to comply with the standard.

DATES: This final rule is effective on Sept. 1, 2007. The incorporation by reference of certain publications listed in the rule is approved by the Director of the Federal Register as of Sept. 1, 2007.

Through today's final rule, we are putting in place a compliance and enforcement program that implements the renewable fuel program, also known as the Renewable Fuel Standard (RFS) program. This program accomplishes the statutory goal of increasing the volume of renewable fuels that are required to be used in vehicles in the U.S. as required in Section 211(o) of the Clean Air Act (CAA) enacted as part of the Energy Policy Act of 2005 (the Energy Act or the Act). This final rule resulted from a collaborative effort with stakeholders, including refiners, renewable fuel producers and distributors, who together helped to design a program that is simple, flexible, and enforceable.”

Each year, the EPA publishes the required percentage of ethanol/renewal fuel additives refiners must use the following year. For 2009, refiners are required to sell 10.21 percent of their total fuels sold as “renewal fuel” (in our area the additive is ethanol). This percentage is intended to increase yearly.

The link to the 2009 requirements is http://www.epa.gov/fedrgstr/EPA-AIR/2008/November/Day-21/a27613.htm

In 2011, the EPA’s RFS standard requires refineries to sell 8.01% of their total fuels sold as “renewal fuels”.

Here is the link for the 2011 requirements: http://www.epa.gov/otaq/fuels/renewablefuels/420f10056.htm#3

total of 14 billion gallons of ethanol must be sold in 2011 per the EPA’s 2011 mandate. Based on the US consumption of gasoline at 140 billion gallons in 2010. The EPA’s mandate peaks out in 2022, when a total of 36 billion gallons of ethanol must be sold. Based on the 140 billion gallons of gasoline consumed, that equates to a total of 26% of total gasoline sales which must be “renewal fuels” in 2022. Since there is very little “bio diesel”, the vast majority of the renewal fuel mandate is met as ethanol blend.


"Pete" Landry Comments welcome: way2gopete@yahoo.com