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AG NEWS 2010/08/02

“Industry Wants Wind Energy Legislation”

The American Wind Energy Association is pressing for the inclusion of a renewable electricity standard in energy legislation. AWEA officials insist that a 15-percent mandate by 2021 has the 60 bipartisan votes necessary to clear the Senate. American Wind Energy Association CEO Denise Bode says a national mandate for renewable energy is crucial. Bode says her group will make every effort to get this done. She says it’s about the survival of an industry.

The American Wind Energy Association reports that wind energy installments dropped 71-percent during the second quarter of 2010 compared to the same period last year – and 57-percent compared to second-quarter 2008. Bode attributes the drop off to the lack of a federal policy requiring utilities to add wind and other renewable energy sources to their portfolios.
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“Report Focuses on Energy Supports”

New research from Bloomberg New Energy Finance reveals that governments of the world are spending substantially more on subsidizing dirty forms of energy than on renewables and biofuels. In all – Bloomberg New Energy Finance says governments of the world provided approximately 43 to 46-billion dollars to renewable energy and biofuels technologies, projects and companies in 2009. This figure stands in stark contrast to the 557-billion spent on subsidizing fossil fuels in 2008 as estimated by the International Energy Agency last month.

The BNEF preliminary analysis suggests the United States is the top country – as measured in dollars deployed – in providing direct subsidies for clean energy with an estimated 18.2-billion spent in total in 2009. Approximately 40-percent of this went toward supporting the U.S. biofuels sector – with the rest going towards renewables.

The BNEF report says the gap between what governments spend on subsidizing fossil fuels and clean energy should narrow considerably in 2010 for two reasons. First – support for renewables and biofuels will grow as disbursement of 188-billion in global stimulus funds for clean energy accelerates. Second – the amount governments such as China spend to keep fossil fuel prices artificially low for consumers has dropped as oil prices retreated from their mid-2008 peaks. Simply put – less government support is needed to make these dirty sources of energy more affordable to populations around the globe.
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“World Bank Changes Tune on Biofuels Impact on Commodity Prices”

The Development Prospects Group at the World Bank has concluded the effect of biofuels on food prices hasn’t been as large as originally thought – but the use of commodities by financial investors may have been partly responsible for the 2007, 2008 spike. Authors of the report say energy prices were important in the non-energy commodity price spikes seen in the past – and concluded that it’s unlikely biofuels played a big part because they don’t represent a large percentage of worldwide grain and oilseed use.

The authors of a recently released report say a stronger link between energy and non-energy commodity prices is likely to have been the dominant influence on developments in commodity – and especially food – markets. Biofuels producers and members of the Renewable Fuels Association have challenged people blaming ethanol and biodiesel production for the spike in commodity prices. RFA President Bob Dinneen says the report reaffirms the marginal role biofuels play in world commodity and food prices. Dinneen states the report should silence critics in the food processing industry, livestock industry, on Capitol Hill and anywhere else that sought to portray ethanol as the boogeyman – perhaps allowing a real conversation about America’s energy future to ensue.
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“New York City to Burn Bioheat”

Starting in October this year – all heating oil sold in New York City will contain a blend of two-percent biodiesel. Legislation providing for the sale of Bioheat – a blend of heating oil and biodiesel – was passed last week. Shelby Neal – state regulatory director for the National Biodiesel Board – points out that New York City is already the largest municipal user of biodiesel in transportation applications. Neal calls this latest move a progressive step towards cleaner emissions from heating the homes and buildings there.

Neal notes the biodiesel is likely to be made from many sustainable, renewable resources – including recycled cooking oil. In a city with more than eight-million people and 20-thousand restaurants within its limits – this Bioheat requirement is a golden opportunity to recycle the city’s used cooking oil into cleaner burning fuel.

New York City uses more than a billion gallons of heating oil a year – so two-percent biodiesel represents a 20-million gallon market for biodiesel. The move to Bioheat will support green jobs and domestic energy security. Neal hopes New York City’s progressive actions will encourage other cities serious about greening efforts to follow suit.
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“Largest Flex Fuel Vehicle Fleet Has New Pump”

The largest Naval complex in the world – the Norfolk Naval base in Norfolk, Virginia – has more than 25-hundred flex-fuel vehicles in its fleet. Now – it also has a publicly accessible fueling station. The Naval Station Norfolk E85 Station will provide fuel to the Navy Fleet and city fleets. The Renewable Fuels Association and Protec Fuel participated in the project. Officials are proud that with the installation of this E85 pump – these vehicles will now have the ability to fill up with the fuel they were designed to run on.

Todd Garner – Managing Partner of Protec Fuel – says the Norfolk Naval E85 station will effectively serve the general public and the large flex-fuel fleet vehicles simultaneously. Economic and environmental benefits aside – Garner says this station and E85 will help get our troops home and strengthen our national security through domestically produced fuels. To help educate those driving these vehicles – the rearview mirrors will display a hanger providing FFV information after each maintenance service.

There are more than eight-million flex-fuel vehicles on America’s roadways today with over 23-hundred fueling stations offering blends of E85. To help locate E85 stations – the Renewable Fuels Association has developed a fuel-locator application for Garmin and TomTom GPS devices.
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“Public Lands Grazing Threatened”

The Public Lands Council reports that a recent settlement agreement between a major energy company and environmental activist groups could have a devastating impact on the livestock industry. The agreement between El Paso Corporation, Western Watersheds Project and Oregon Natural Desert Association seeks in part to create unprecedented federal legislation to allow for the buyout and retirement of federal grazing permits – threatening ranchers’ grazing rights across vast portions of the West.

Under the agreement – El Paso Corporation agreed to provide 22-million dollars to WWP and ONDA to establish two boards responsible for the distribution and funding of alleged “resource conservation” activities – including the buyout of grazing permits. El Paso Corporation agreed to the settlement in response to pressure from WWP over the development of a 680-mile oil pipeline stretching from Wyoming to Oregon.

Skye Krebs – a rancher from Lone, Oregon and president of the Public Lands Council – calls this move unacceptable. Krebs believes this agreement provides a funding source for these groups to continue their activist agenda to end grazing on public lands. NCBA federal lands chairman Mark Roeber says we’re adamantly opposed to any efforts encouraging the buyout or retirement of grazing permits.

Public Lands Council and National Cattlemen’s Beef Association leadership met last week with El Paso Corporation to express NCBA’s opposition. El Paso has agreed to respond by this Thursday.
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“EPA Takes Action After Soybean Damage Reported”

The Environmental Protection Agency has issued an order to HPI Products of St. Joseph, Missouri directing the company to immediately halt the sale or distribution of its supplies of Warthog 2 EC following reports that a tainted batch of the herbicide distributed by the company damaged eight-thousand acres of soybeans near Beattie, Kansas. Similar Stop Sale, Use or Removal Orders have been issued by EPA to the pesticide’s registrant, J. Oliver Products of Hernando, Mississippi; and to Pony Express Warehouse, in St. Joseph, Missouri – which received distribution of the product from HPI Products.

The Missouri Department of Agriculture investigated and found that samples of Warthog 2 EC taken from stocks at HPI Products appeared to be tainted with another herbicide, Dicamba. The National pesticide Information Center says Warthog 2 EC is commonly used to control annual and perennial grasses among a wide range of field crops – including soybeans. Dicamba is used to control broad-leaf weeds in a variety of settings – and can be harmful to soybeans and other legumes.

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