View From the Hill
December 13, 2006
BY Bob Dinneen
During the National Ethanol Conference last February, I declared that ethanol had arrived. At that time, our industry was still celebrating the passage of the 2005 Energy Policy Act and the renewable fuels standard (RFS), as well as basking in the glow that comes from a mention by the president in the State of the Union Address.
In the third week of February, it seemed like ethanol had, indeed, arrived. I don't think anyone foresaw exactly how true that statement would turn out to be.
We saw oil refiners voluntarily decide to eliminate MTBE from the gasoline supply, creating a sudden demand for ethanol in reformulated gasoline markets, and over-the-top predictions of supply shortages and disruptions—none of which materialized.
As demand has certainly grown, so too has our industry's ability to produce. This year, approximately 12 new ethanol biorefineries came on line and more than 30 new ethanol biorefineries broke ground all across the nation. The result will be more than 5 billion gallons of ethanol production this year with an eye toward reaching the 7.5 billion gallons called for in the RFS by 2009.
While our industry has been busy focusing on the business of producing and selling ethanol, policy-makers in Washington, D.C., have been equally busy looking for ways to continue encouraging the production and use of ethanol.
In 2006, legislators from both sides of the aisle introduced scores of bills that sought to increase the mandates of the RFS, encourage automakers to manufacture more flexible-fuel vehicles, expand E85 infrastructure, and on and on. While none of these bills made it into law during the 109th Congress, they have laid the groundwork for what will be a very active 2007 on Capitol Hill.
Likewise, the other end of Pennsylvania Avenue ratcheted up its focus on renewable fuels, and ethanol in particular. President George W. Bush has repeatedly used the megaphone that comes with sitting in the Oval Office to declare that America is addicted to oil, and offer ethanol as a good first step in curing that addiction. He even took time to speak at a meeting of the Renewable Fuels Association (RFA) in April to outline his vision for renewable fuels.
Evidence of the emphasis that this administration is putting on renewable fuels was on display in St. Louis in October, as the president joined the secretaries of agriculture and energy, as well as the administrator of the U.S. EPA, in championing renewable energy and furthering the discussion on how best to continue fostering its development. Not surprisingly, ethanol was featured prominently throughout the day-and-a-half conference.
All told, 2006 will easily be looked at as the year ethanol arrived. If you're like me, it leaves you eagerly anticipating what 2007 will bring.
Happy holidays to you and yours from everyone at the RFA!
Bob Dinneen
President and CEO
Renewable Fuels Association
In the third week of February, it seemed like ethanol had, indeed, arrived. I don't think anyone foresaw exactly how true that statement would turn out to be.
We saw oil refiners voluntarily decide to eliminate MTBE from the gasoline supply, creating a sudden demand for ethanol in reformulated gasoline markets, and over-the-top predictions of supply shortages and disruptions—none of which materialized.
As demand has certainly grown, so too has our industry's ability to produce. This year, approximately 12 new ethanol biorefineries came on line and more than 30 new ethanol biorefineries broke ground all across the nation. The result will be more than 5 billion gallons of ethanol production this year with an eye toward reaching the 7.5 billion gallons called for in the RFS by 2009.
While our industry has been busy focusing on the business of producing and selling ethanol, policy-makers in Washington, D.C., have been equally busy looking for ways to continue encouraging the production and use of ethanol.
In 2006, legislators from both sides of the aisle introduced scores of bills that sought to increase the mandates of the RFS, encourage automakers to manufacture more flexible-fuel vehicles, expand E85 infrastructure, and on and on. While none of these bills made it into law during the 109th Congress, they have laid the groundwork for what will be a very active 2007 on Capitol Hill.
Likewise, the other end of Pennsylvania Avenue ratcheted up its focus on renewable fuels, and ethanol in particular. President George W. Bush has repeatedly used the megaphone that comes with sitting in the Oval Office to declare that America is addicted to oil, and offer ethanol as a good first step in curing that addiction. He even took time to speak at a meeting of the Renewable Fuels Association (RFA) in April to outline his vision for renewable fuels.
Evidence of the emphasis that this administration is putting on renewable fuels was on display in St. Louis in October, as the president joined the secretaries of agriculture and energy, as well as the administrator of the U.S. EPA, in championing renewable energy and furthering the discussion on how best to continue fostering its development. Not surprisingly, ethanol was featured prominently throughout the day-and-a-half conference.
All told, 2006 will easily be looked at as the year ethanol arrived. If you're like me, it leaves you eagerly anticipating what 2007 will bring.
Happy holidays to you and yours from everyone at the RFA!
Bob Dinneen
President and CEO
Renewable Fuels Association
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