ND Ethanol January 2012
A Joint Publication of the North Dakota Ethanol Council and North Dakota Ethanol Producers Association
Ethanol marketing grant secured The North Dakota Industrial Commission, through its Renewable Energy Program, has approved a $200,000 matching grant for the two-year Comprehensive Statewide Higher-Level Ethanol Blends Marketing Campaign. Partners in the campaign are the ND Ethanol Council, ND Ethanol Producers Association, ND Corn Utilization Council, ND Corn Growers Association and American Lung Association of ND.
Contact Information Deana Wiese Executive Director PO Box 1091 Bismarck, ND 58502 firstname.lastname@example.org 701-355-4458 www.ndethanol.org
The overall objective of the campaign is to increase the percentage of ethanol in North Dakota’s total motor vehicle fuel from six to 10 percent. Currently, approximately 21 million of the 350 million gallons of the ethanol produced in North Dakota are used within the state. This campaign aims to keep an additional 14 million gallons within North Dakota. The target audiences for the campaign are flex fuel vehicle (FFV) owners and the auto industry, specifically salesman and service writers. The objective will be achieved by increasing FFV owners’ use of higherlevel ethanol blends by 10% (from 15 to 25%) and increasing auto industry familiarity with the use of higher-level ethanol blends by 25% (from 36.7 to 61%).
Flint Communications in Fargo was selected as the marketing firm and has begun working on the campaign strategies, which include: • Creating a consistent promotional message for higher-level ethanol blends. • Motivating FFV owners to use higher-level ethanol blends. • Educating the auto industry on the benefits of using higher-level ethanol blends. The campaign theme of “Run With It” has been selected, and partnerships are currently being established with a select number of retailers and auto dealers to begin development of pilot programs with each. For additional information on the campaign, contact Deana Wiese at 701-355-4458. Thanks to the ND Ethanol Marketing Campaign partners: ND Ethanol Council ND Ethanol Producers Association ND Corn Utilization Council ND Corn Growers Association American Lung Association of ND ND Industrial Commission
2011 Special Session recap
E85 sales top 1 million gallons
Annual statewide sales of E85 have surpassed the 1-million-gallon mark in North Dakota. According to reports from the North Dakota Office of State Tax Commissioner, the milestone was reached in September. Approximately 660,000 gallons of E85 were sold in North Dakota in 2010, up from 275,000 gallons in 2009. The state now has more than 70 retail outlets for E85, and each month, sales of E85 in 2011 have exceeded that same month’s 2010 sales.
E85 Sales 2009 - 2011 Month 2009 2010 Jan 14,030 23,316 Feb 13,038 23,869 March 12,897 29,931 April 17,621 46,616 May 22,552 56,260 June 29,582 52,917 July 28,077 58,483 August 29,228 66,217 September 26,619 83,360 October 29,004 72,657 November 27,340 68,909 December 25,269 81,192 Total 275,257 663,727* *147% increase over 2009
2011 79,729 83,884 97,903 113,903 129,180 106,590 120,279 160,162 114,359
**128% increase over 2010 (thru September)
Top 5 ethanol stories for 2011 (from Renewable Fuels Association)
America’s ethanol industry has been in a state of rapid evolution since the beginning of 2000. Record-setting production, policy development and market expansion have all moved forward with dramatic speed and helped to create the world’s largest, most efficient, most cost effective renewable fuels industry. However, developments in 2011 have set the stage for a new chapter in American ethanol history. Here are the Top 5 stories of 2011 as seen through the eyes of the Renewable Fuels Association.
More ethanol per bushel
As corn-based ethanol facilities strive to drive down production costs, they are taking a closer look at feedstocks. Molecular geneticists and seed breeders have been responding, which may impact the types of corn produced in certain areas. Read this article.
The 2011 Special Session convened on Monday, Nov. 7, and concluded its work on Friday, Nov. 11. Although none of the issues directly affected the ethanol industry, NDEPA lobbyist, Joel Gilbertson, monitored the session and provided the recap below. HB 1473 - Legislative Redistricting: The approved legislative redistricting plan includes creating two new districts in Fargo and Bismarck, while adjusting rural districts in order to keep 47 districts in the state. HB 1474 - Health Care Exchange: The Interim Health Care Committee developed a proposal for a state-run health care exchange. The proposal was defeated by the House, and the state will now default to the federal health care exchange option, unless the proposal deadline of Jan. 1, 2013, is extended by the federal government. SB 2370 - Fighting Sioux Logo: The Fighting Sioux legislation repealed a bill passed during the regular session that required UND to keep its Fighting Sioux nickname and an American Indian logo. SB 2371 - Disaster Relief: The final disaster relief package totals around $640 million in funding, including nearly $158.9 million from the general fund and the authorization for the spending of a potential $235 million in federal funds. Primary beneficiaries are flood victims, who will have access to a loan fund in the Bank of North Dakota with 1% interest and payment deferred for 24 months. In addition, $23 million is appropriated for infrastructure needs for non-oil and gas counties, contingent upon certain levels of expected oil production. Resolutions: Two Environmental Protection Agency (EPA) resolutions were also passed during the Special Session. They addressed EPA regulation of regional haze and hydraulic fracturing. For additional information visit www.legis.nd.gov or contact Gilbertson at 701-258-7899.
EmPower ND discusses regulations
Randy Schneider, NDEPA president, presented information on federal regulations that have the potential to impact North Dakota’s ethanol industry to the EmPower ND Commission during its Nov. 3 meeting. Included were the following items: • Greenhouse Gas (GHG) Emission Rules • GHG Emissions Standards and Fuel Efficiency Standards for Mediumand Heavy-Duty Engines and Vehicles • 2017–2025 Model Year Light-Duty Vehicle GHG Emissions and CAFÉ Standards • California’s Low Carbon Fuel Standard • Food Safety Modernization Act • Fuel Registration for E15 • Toxic Substances Control Act • Tier 3/Lev III The information will be used as the Commission begins preparing its energy policy recommendations for the 2013 legislative session. Additional information on the EmPower ND Commission can be found here.
Ethanol by the numbers
Currently in North Dakota there are: • 221 ethanol blender pumps applied for or installed at 67 stations in 44 communities, which places the state as a leader in the nation. • 64,500 flex fuel vehicles, a more than 50 percent increase since 2009. • E85 sales outpacing 2010 by 128 percent.
Mark your calendar! Aug 22, 2012 NDEPA Golf Scramble 11 a.m.-7 p.m. Oxbow Golf and Country Club Near Fargo
Federal issues update
As you probably are aware, the VEETC (blender’s tax credit) expired the end of 2011. There also have been attacks on the Renewable Fuels Standard and the portion of the USDA’s Rural Energy for America Program that funds blender pump infrastructure. The NDEPA and NDEC continue to communicate with the North Dakota congressional delegation to keep them up-to-date and informed on federal issues impacting North Dakota’s ethanol industry. If you have an opportunity to reach out to them as well, please do so. Contact information for North Dakota’s congressional delegation can be found at the NDEC website.
NDEPA Board of Directors Randy Schneider, President 701-426-4994 email@example.com Mick Miller, Vice President 701-202-1683 firstname.lastname@example.org Jeff Zueger, Secretary 701-442-7501 email@example.com
NDEC Members Jeff Zueger, Chairman Blue Flint Ethanol Underwood, ND 701-442-7501 firstname.lastname@example.org Gerald Bachmeier Red Trail Energy, LLC Richardton, ND 701-974-3308 email@example.com Russ Newman Tharaldson Ethanol Plant Casselton, ND 701-347-4000 firstname.lastname@example.org Wes Plummer Hankinson Renewable Energy Hankinson, ND 701-242-9420 email@example.com Jason Stahr ADM Corn Processing Walhalla, ND 701-549-3931 firstname.lastname@example.org