Advanced Biofuel Bill Signed into Law

Posted on July 27, 2008. Filed under: Field-to-Pump, Hydrous Ethanol | Tags: , , , , , |

Louisiana Enacts the Most Comprehensive Advanced Biofuel Legislation in the Nation

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Advanced Biofuel Industry Development Initiative Benefits Consumers,

Farmers and Gas Station Owners with Localized “Field-to-Pump” Strategy

 

Baton Rouge, LA (July 26, 2008) – Governor Bobby Jindal has signed into law the Advanced Biofuel Industry Development Initiative, the most comprehensive and far-reaching state legislation in the nation enacted to develop a statewide advanced biofuel industry.  Louisiana is the first state to enact alternative transportation fuel legislation that includes a variable blending pump pilot program and a hydrous ethanol pilot program.

 

Field-to-Pump Strategy

The legislature found that the proper development of an advanced biofuel industry in Louisiana requires implementation of the following comprehensive “field-to-pump” strategy developed by Renergie, Inc.:

(1) Feedstock Other Than Corn

(a) derived solely from Louisiana harvested crops;

(b) capable of an annual yield of at least 600 gallons of ethanol per acre;

(c) requiring no more than one-half of the water required to grow corn;

(d) tolerant to high temperature and waterlogging;

(e) resistant to drought and saline-alkaline soils;

(f) capable of being grown in marginal soils, ranging from heavy clay to light sand;

(g) requiring no more than one-third of the nitrogen required to grow corn, thereby reducing the risk of contamination of the waters of the state; and

(h) requiring no more than one-half of the energy necessary to convert corn into ethanol.

(2) Decentralized Network of Small Advanced Biofuel Manufacturing Facilities

Smaller is better.  The distributed nature of a small advanced biofuel manufacturing facility network reduces feedstock supply risk, does not burden local water supplies and provides for broader based economic development.  Each advanced biofuel manufacturing facility operating in Louisiana will produce no less than 5 million gallons of advanced biofuel per year and no more than 15 million gallons of advanced biofuel per year.

(3) Market Expansion

Advanced biofuel supply and demand shall be expanded beyond the 10% blend market by blending fuel-grade anhydrous ethanol with gasoline at the gas station pump.  Variable blending pumps, directly installed and operated at local gas stations by a qualified small advanced biofuel manufacturing facility, shall offer the consumer a less expensive substitute for unleaded gasoline in the form of E10, E20, E30 and E85. 

 

 

Pilot Programs

(1) Advanced Biofuel Variable Blending Pumps – The blending of fuels with advanced biofuel percentages between 10 percent and 85 percent will be permitted on a trial basis until January 1, 2012. During this period the Louisiana Department of Agriculture and Forestry Division of Weights & Measures will monitor the equipment used to dispense the ethanol blends to ascertain that the equipment is suitable and capable of producing an accurate measurement.

(2) Hydrous Ethanol – The use of hydrous ethanol blends of E10, E20, E30 and E85 in motor vehicles specifically selected for test purposes will be permitted on a trial basis until January 1, 2012.  During this period the Louisiana Department of Agriculture and Forestry Division of Weights & Measures will monitor the performance of the motor vehicles. The hydrous blends will be tested for blend optimization with respect to fuel consumption and engine emissions.  Preliminary tests conducted in Europe have proven that the use of hydrous ethanol, which eliminates the need for the hydrous-to-anhydrous dehydration processing step, results in an energy savings of between ten percent and forty-five percent during processing, a four percent product volume increase, higher mileage per gallon, a cleaner engine interior, and a reduction in greenhouse gas emissions.

HB 1270, entitled “The Advanced Biofuel Industry Development Initiative,” was co-authored by 27 members of the Legislature.  The original bill was drafted by Renergie, Inc.   Representative Jonathan W. Perry (R – District 47), with the support of Senator Nick Gautreaux (D – District 26), was the primary author of the bill.  Reflecting on the signing of HB1270 into law, Brian J. Donovan, CEO of Renergie, Inc. said, “I am pleased that the legislature and governor of the great State of Louisiana have chosen to lead the nation in moving ethanol beyond being just a blending component in gasoline to a fuel that is more economical, cleaner, renewable, and more efficient than unleaded gasoline.  The two pilot programs, providing for an advanced biofuel variable blending pump trial and a hydrous ethanol trial, established by the State of Louisiana should be adopted by each and every state in our country.”

 

 

State Agencies Must Purchase or Lease Vehicles That Use Alternative Fuels

Louisiana’s Advanced Biofuel Industry Development Initiative further states, “The commissioner of administration shall not purchase or lease any motor vehicle for use by any state agency unless that vehicle is capable of and equipped for using an alternative fuel that results in lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide, or particulates or any combination thereof that meet or exceed federal Clean Air Act standards.”

 

 

Advanced Biofuel Price Preference for State Agencies

Louisiana’s Advanced Biofuel Industry Development Initiative provides that a governmental body, state educational institution, or instrumentality of the state that performs essential governmental functions on a statewide or local basis is entitled to purchase E20, E30 or E85 advanced biofuel at a price equal to fifteen percent (15%) less per gallon than the price of unleaded gasoline for use in any motor vehicle. 

 

 

Economic Benefits

The development of an advanced biofuel industry will help rebuild the local and regional economies devastated as a result of hurricanes Katrina and Rita by providing:

(1) increased value to the feedstock crops which will benefit local farmers and provide more revenue to the local community;

(2) increased investments in plants and equipment which will stimulate the local economy by providing construction jobs initially and the chance for full-time employment after the plant is completed;

(3) secondary employment as associated industries develop due to plant co-products becoming available at a competitive price; and

(4) increased local and state revenues collected from plant operations will stimulate local and state tax revenues and provide funds for improvements to the community and to the region.

“Representative Perry and Senator Gautreaux have worked tirelessly to craft comprehensive advanced biofuel legislation which will maximize rural development, benefit consumers, farmers and gas station owners while also protecting the environment and reducing the burden on local water supplies,” said Donovan.  “Representative Perry, Senator Gautreaux, and Dr. Strain, Commissioner of the Louisiana Department of Agriculture and Forestry, should be praised for their leadership on this issue.”

About Renergie

Renergie was formed by Ms. Meaghan M. Donovan and Mr. Michael J. Donovan on March 22, 2006 for the purpose of raising capital to develop, construct, own and operate a network of ten ethanol plants in the parishes of the State of Louisiana which were devastated by hurricanes Katrina and Rita.  Each ethanol plant will have a production capacity of five million gallons per year (5 MGY) of fuel-grade ethanol.  Renergie’s “field-to-pump” strategy is to produce non-corn ethanol locally and directly market non-corn ethanol locally. On February 26, 2008, Renergie was one of 8 recipients, selected from 139 grant applicants, to share $12.5 million from the Florida Department of Environmental Protection’s Renewable Energy Technologies Grants Program.  Renergie received $1,500,483 (partial funding) in grant money to design and build Florida’s first ethanol plant capable of producing fuel-grade ethanol solely from sweet sorghum juice. On  April 2, 2008, Enterprise Florida, Inc., the state’s economic development organization, selected Renergie as one of Florida’s most innovative technology companies in the alternative energy sector.  On January 20, 2009, Florida Energy & Climate Commission amended RET Grant Agreement S0386 to increase Renergie’s funding from $1,500,483 to $2,500,000. By blending fuel-grade ethanol with gasoline at the gas station pump, Renergie will offer the consumer a fuel that is renewable, more economical, cleaner, and more efficient than unleaded gasoline.  Moreover, the Renergie project will mark the first time that Louisiana farmers will share in the profits realized from the sale of value-added products made from their crops.

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7 Responses to “Advanced Biofuel Bill Signed into Law”

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Kudo’s to Louisiana! Your gov’t seems to moving in a positive direction. Here, in Michigan were stuck in the same ol same ol political gotcha mentality. Would this be the tale of two Governor’s?

Yes, the blending pumps and hydrous ethanol a smart move. I didn’t know hydrous ethanol could be blended with petro? Would someone explain? Louisiana setting pretty with the sub tropical climate. You have many energy crops to choose from. Why limit ethanol production to no less than 5 million gallons per year? Would that be a ploy to whack all part time businesses? Would that be smart for gov’t to take sides to destroy small time investors. The technology and investment could be miro produced. One such company, the Efuel100 produces small stand alone ethanol production equipment for home owners. Another company manufacturers turnkey farm equipment transported by semi trailer on skid. Production of 500,000 gallons per year. Allard Research a automatic controls company envisions the farmer operating equipment down on the farm for improving farm product worth. Wouldn’t this be ideal, as the farmer could then closed loop, control crop to fuel efficiencies, and employ more local labor. The farmer would be in best position to balance production, farm crops, storage of feed stock and utilization of wet distillery grains for cattle feed. Farmers would utilize dried corn and grain sorghum for stored feedstock utilized to balance ethanol supply. Farmers could utilize sweet sorghum, sugarcane, sweet potatoes, switch grass etc. for crop rotation and evaluate process of energy production; testing plant hybrids, chemistry, process control, and new equipment.

Look no farther than the micro brewery economic stimulus to realize the tremendous power of small quanity producers. The small quanity generators a plethora of diverse economic success stories. An incredible powerful economic grass roots system. Please don’t try to whack these folks off at the knees as gov’t or elites think highly of their mental prowess to “control” the masses. When you unleash the tremendous power of the backyard chemist and inventors trying to make a dime…..its a good thing. Help all economic sectors and don’t try to extinguish or predetermine winners and losers.

Preliminary tests conducted in Europe have proven that the use of hydrous ethanol, which eliminates the need for the hydrous-to-anhydrous dehydration processing step, results in an energy savings of between ten percent and forty-five percent during processing, a four percent product volume increase, higher mileage per gallon, a cleaner engine interior, and a reduction in greenhouse gas emissions. Europe and Brazil are currently utilizing midlevel ethanol blends, including hydrous ethanol, in non-FFVs.

Under Act 382, ethanol production is limited to no less than 5 MGY for two basic reasons: quality control and regulation. In the 1980s, dozens of very small ethanol production facilities popped-up in Louisiana. Many produced very poor quality undenatured ethanol. In other words, these were no more than moonshine operations.

Under the Renergie Field-to-Pump strategy, landowners and farmers will participate in the profits realized from the sale of their value-added products via receipt of royalty payments from Renergie.

Sure, the early years of ethanol just an extension of moonshine, but that’s all they had and they did make it happen i.e. Floyd Butterfield. Nowadays we have made huge progress upon micro process control and support technology such as bio engineered corn.

The market is huge. The challenge is immense. We need not try to discriminate to large processors within logic of quality. Again, think of the micro brew pubs. Quality of their product is unchallengeable. No, not all, but the open market will take care of those with inferior product. No government control required.

Back some years ago gov’t regulators muttered the same argument. Alcohol brewed drinks much to dangerous to permit small or home folks attempt. You know the same old argument that we have to take your freedom away to protect you IOWs you are an idiot and we elites know whats best for your sorry self.

Another waste of money and materials. Make auto manufacturers remove their high mileage tecnology from the shelf and use in current cars.
Have personally riden in two cars that got 100 mph,
(yes; one hundred miles per gallon), They then would only need one engine to achieve this, instead of selection they have today. Pogue carburator has been on shelf since 1933 (100 mpg). But first, uncapped all oil wells in U.S, and open up Gull Island.
At 100 mph only output from exhaust would be water (so they don’t need hydrogen either.

Great legislation.
How can I get a copy of legislative language for our legislators?

We would like to visit with you about this and will be at Kinder, LA, this week on Tues Feb 3 and Wed Feb 4.

Kinder is not far from Kaplan and we can come down if you will be there.

Jim,

A copy of Act 382 has been posted on Renergie’s weblog. You may also obtain a copy of the complete legislative history by going to the Louisiana Legislature website and search for H.B. 1270. The website is very user-friendly. I will be in Florida for the next two weeks. Please feel free to contact me the next time that you are in Louisiana.

Best regards,
Brian

I think it is fantastic that Louisiana is stepping up to the plate to advance this technology. What parishes are the facilities in?


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    Renergie created “field-to-pump," a unique strategy to locally produce and market advanced biofuel (“non-corn fuel ethanol”) via a network of small advanced biofuel manufacturing facilities. The purpose of “field-to-pump” is to maximize rural development and job creation while minimizing feedstock supply risk and the burden on local water supplies.

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