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Legislative Update

Randy Stookey Joins KAEP as New General Counsel
October 27, 2011

Randy Stookey will be joining the Kansas Association of Ethanol Processors (KAEP) staff as Vice President and General Counsel effective November 7, 2011.

Stookey spent six years as a staff attorney for the Kansas Department of Agriculture, where he regularly worked with laws and regulations regarding pesticides, fertilizers, grain warehouses, weights and measures and agricultural commodities. He is very familiar with the Kansas Food Safety and Kansas Agricultural Remediation Acts.

Stookey has an undergraduate degree in Agribusiness from Kansas State University and a Juris Doctorate degree from Washburn University Law School. He is also a Captain in the Kansas Army National Guard and serves in the Judge Advocate General, Trial Defense Service.

“Randy has the educational background we were looking for in our new General Counsel, and we are confident he will also be able to use his agricultural work experience to thrive in this vital role in our associations,” KAEP President Tom Tunnell said. “We are thrilled to have Randy join our staff and welcome him to the KAEP team.”

Stookey is replacing Mary Jane Stankiewicz, who is leaving to become Director of Government Relations and Communications for the Kansas Board of Regents.

KAEP promotes ethanol production at Kansas State Fair

August 31, 2011

A focus on ethanol promotion is the theme of the Kansas Association of Ethanol Processors’ (KAEP) 2011 Kansas State Fair exhibit. A wide range of educational materials will be available to help increase public awareness of the benefits of ethanol.

“Kansans are proud of the economic impact that agriculture has on the state, and this is an effective way for us to communicate the message that ethanol is an important part of our alternative energy mix,” Tom Tunnell, KAEP President & CEO, said.

Located in the Pride of Kansas Building, the exhibit will feature a visual display of the ethanol production process from grain to fuel. Information on E85 fueling stations in Kansas, flex fuel vehicles on the market and where ethanol plants are located in the state will also be available.

As the opening day sponsor of the fair, KAEP will also be holding a raffle drawing for a $100 Kwik Shop gas card on Friday, September 9, and $50 Kwik Shop gas cards each following day of the fair.

Ethanol Industry and KSU Football Announce Live Wildcat Purple, Drive Ethanol Green Sweepstakes

August 30, 2011

The Kansas Association of Ethanol Processors is proud to be a participating sponsor of the Live Wildcat Purple, Drive Ethanol Green Sweepstakes along with K-State Sports Properties, the multi-media and sponsorship rights holder for K-State athletics.

Beginning yesterday, fans can text ETHANOL to 66856 to register to win a 2-year lease on a 2012 flex-fuel GMC Sierra pickup. From the text entries, six finalists will be selected and announced at halftime of each of K-State's six home football games this fall. All six finalists will then return for the season finale against Iowa State on Dec. 3, to determine the winner.

Other participating partners in the promotion include Kansas Farm Bureau, Kansas Corn Commission, Renewable Fuels Association, Growth Energy, Briggs GMC, Carter Energy and Dara's Corner Market.

"KAEP is thrilled to be partnering with Kansas State Football and our agricultural friends on this exciting opportunity to share the message of ethanol's benefits to the economy and environment," Mike Chisam, general manager of Kansas Ethanol, LLC and KAEP Board Chairman, said. "We hope that all football fans will participate in the sweepstakes and join us in advancing Kansas' home grown fuel."

The GMC Sierra, powered by 85% ethanol, will be on display at each K-State home game for fans to learn more about the benefits of using ethanol. The vehicle will also be displayed during the week at Dara's Corner Market at the intersection of Kimball Avenue and Tuttle Creek Boulevard, as well as Briggs' GMC Dealership in Manhattan. In addition to the 2-year lease, the winner will also receive a year's supply of free ethanol to fuel the vehicle.

For complete rules and eligibility information, visit http://www.formstack.com/landing/2189.

EPA approves label for sale of E15

June 28, 2011

The U.S. Environmental Protection Agency (EPA) issued fuel pump labeling and other requirements for gasoline blends containing more than 10 and up to 15 percent ethanol, known as E15. These requirements will help ensure that E15 is properly labeled and used once it enters the market.

The new orange and black label must appear on fuel pumps that dispense E15. This label will help inform consumers about which vehicles can use E15. This label will also warn consumers against using E15 in vehicles older than model year 2001, motorcycles, watercraft, and gasoline-powered equipment such as lawnmowers and chainsaws. Read more.

Ethanol editorial misses the mark

June 21, 2011

The following is a response by Mike Chisam, General Manager of Kansas Ethanol, LLC and KAEP Chairman, to last Thursday's Salina Journal editorial, Subsidies must go, eventually:

The Salina Journal published an editorial on Thursday that quoted out-of-date statistics and inaccurate facts about the current state of the ethanol industry.

While the article criticized last week's U.S. Senate vote to continue the ethanol tax credits through the Volumetric Ethanol Excise Tax Credit (VEETC), Kansas citizens should also support such incentives. According to a 2010 Kansas Legislative Research Report, a 100 million gallon ethanol plant results in 45 direct jobs and 101 indirect jobs in the area, $70 million to the economy during construction, $3.2 million per year in tax revenues, and $150 million in capital construction investments. The Kansas Department of Commerce also listed Kansas as the fourth ranking state in the nation for biomass production.

The editorial's misinformation continued with claims that ethanol is responsible for higher food costs. I would strongly encourage the author to use information from more timely sources, such as a report issued by the United States Department of Agriculture in 2008 that found that biofules were responsible for only .2 of the 4.8 percent increase in food costs. Or how about the fact that for every dollar the consumer spends at the grocery store, only 19 cents are farm cents and 3 cents of that is corn. The Journal's readership may also be interested in learning that ethanol production uses what is commonly referred to as field corn, which is much different than the corn consumers buy in the grocery store. In fact, for every bushel of field corn used in ethanol production, one-third is returned to the feed grain market through a by-product called distillers grain.

In 2010, the USDA released another study that showed one unit of fossil fuel energy used in corn ethanol production results in 2.3 units of energy in the form of ethanol. On the other hand, researchers at the Department of Energy's Argonne National Laboratory found it takes 1.23 units of fossil fuel energy to produce one unit of energy in the form of gasoline. According to the Kansas Corn Commission, in 2009 Kansas produced over 822 million bushels of corn and sorghum combined compared to the 700 million bushels in 2008. Thus, ethanol actually produces significantly more energy yield than fossil fuel while using 25 percent less energy to produce it.

Another inaccuracy in the editorial is the statement that tax credits go to the ethanol producers. This is wrong. The tax credits go directly to the fuel blenders. It is vital to give incentives to the oil companies to blend gasoline with ethanol to provide market access to consumers at the pump. The opportunities that are created through diversification of our energy supply are bountiful for Kansas and the entire country.

Governor Brownback Signs Ethanol Incentive Fund Bill

June 7, 2011

The Kansas Association of Ethanol Processors (KAEP) commends Governor Sam Brownback for signing HB 2122, the ethanol incentive fund bill that passed the state legislature this session, and continuing to be a champion for ethanol production in Kansas.

The $3.5 million/year program provides a seven year payment of $.035/gallon (up to 15million gallon) to grain based ethanol plants that are in existence by 2012, as well allows new cellulosic ethanol production plants to participate in the program.

“The Brownback Administration reaffirmed its commitment to Kansas’ ethanol industry by extending this program and supporting the opportunity for domestic fuel production in the state,” Mike Chisam, KAEP Chairman, said.

A bill signing ceremony was held on May 26 at the Kansas Statehouse. At the ceremony, the ethanol producers had one-on-one time with the Governor, where they personally thanked him for including the funding for this program in his 2011 proposed budget, as well as communicate directly on a number of other ethanol-related issues.

(l-r) Tom Tunnell, KAEP President & CEO; Scott Anderson, East Kansas

Agri-Energy; Steve McNinch, Western Plains Energy; Chris Standlee,

Abengoa BioEnergy; Kenny Knight, Kansas Ethanol; Steve Gardner, East

Kansas Agri-Energy; Governor Sam Brownback; Nick Hatcher, Conestoga

Energy Partners; Brad Rayl, Kansas Ethanol; Mike Chisam, Kansas Ethanol;

Tom Willis, Conestoga Energy Partners; John Bottenberg, Bottenberg &

Associates; Mary Jane Stankiewicz, KAEP COO & Senior VP of Government

Affairs; and Ron Seeber, KAEP VP of Government Affairs.

Growth Energy: Food Versus Fuel is a Fallacy

April 13, 2011

The following news release was issued by Growth Energy on April 13, 2011:

Deep-pocketed food groups continue to trumpet the since-refuted myths and distortions about ethanol and grocery prices. These special interest groups, led by Big Food, seek to make ethanol a scapegoat for recent hikes in our grocery bills – even as they rake in big profits. Growth Energy believes that lawmakers, the press and the public deserve to know that America’s biggest food conglomerates are raking in the profits at the same time they are perpetuating the Big Lie that ethanol increases grocery store prices – and today sent a report to every Member of Congress detailing the sad history of lies, fallacies and untruths behind the ‘food v. fuel’ propaganda.

Growth Energy’s report to Capitol Hill exposes the truth in a “Food vs. Fuel Fallacies” fact sheet. In the report, Growth Energy identified the most common fallacies perpetuated by Big Food executives and addressed each one with the facts. For example, some grocery manufacturers have seen record profits over the same period that they claim ethanol use has driven up grocery prices.

Growth Energy Public Affairs Director Chris Thorne said, “The bottom line is that lawmakers need to know that the “food vs. fuel” debate is a fallacy. It is an orchestrated campaign against ethanol financed and perpetuated by the very companies that seek to profit from high grocery store prices, at the expense of everyday American families.”

In Landmark Move, EPA Approves Higher Ethanol Blend for Vehicles Built in Last Decade

January 27, 2011

The Kansas Association of Ethanol Processors (KAEP) anticipates the job creation, stronger national security and numerous environmental benefits that will accompany the decision by the U.S. Environmental Protection Agency (EPA) last Friday to raise the amount of ethanol that can be blended into our fuel from 10 percent (E10) to 15 percent (E15) for all vehicles built in the last decade.

The decision last week to permit E15 for 2001 to 2006 model year vehicles follows an October decision by EPA to permit blends up to E15 in vehicles 2007 model year and newer. The EPA was responding to a regulatory petition, the Green Jobs Waiver, filed in March 2009 by Growth Energy.

A full move to E15 creates a bigger market for American ethanol that could help create as many as 136,000 new jobs in the United States and eliminate as much as 8 million metric tons of GHG emissions from the air in a year — the equivalent of taking 1.35 million vehicles off the road. Increasing the domestic, renewable fuel supply would also displace some of the 7 billion gallons of oil that is imported every day into the United States from countries such as Venezuela, Saudi Arabia and Nigeria, at a cost of more than $300 billion annually to our economy.

“This helps crack the blend wall and open up our market for consumers,” said Greg Krissek, KAEP board member and ICM Director of Government Affairs. “There will be some additional regulatory hurdles for E15 over the next couple of months, but this decision is a great next step and is critical in making ethanol accessible to 54% of consumers.”

Mike Chisam, KAEP Chairman and Kansas Ethanol, LLC General Manager, also shared his views on this landmark decision. “Once the labeling issue is worked out through the regulatory channel, this will open the door for American consumers to have the freedom to fuel their vehicles with ethanol.”

The previous E10 standard – which permits up to 10 percent ethanol blended into fuel – was set in the 1970s to help spur the growth of a domestic, renewable fuels industry in answer to America’s first major oil crisis, engineered by OPEC. Since then, the United States has remained addicted to foreign oil; two-thirds of the oil used in this country comes from overseas.

In March 2009, a petition was filed with EPA to permit the raising of that regulatory cap on the ethanol blend from 10 percent to 15 percent to displace more foreign oil.

KAEP Chairman Provides the Real Ethanol Story on Ag Issues

January 3, 2011

Last Thursday, Mike Chisam, General Manager of Kansas Ethanol and KAEP Chairman, provided the real ethanol story on Ag Issues with Kelly Lenz on . Chisam discussed the week long NPR story that provided a dated and inaccurate view of ethanol production. During the radio show, Chisam discussed with Lenz the many benefits of ethanol and corrected the misinformation provided in the NPR story. The radio interview was a two part story. Click below to listen to the Ag Issues interview.

Part I Lenz and Kelly discuss food versus fuel and ethanol's energy return. Part II Lenz and Kelly discuss ethanol's positive impacts on the Kansas economy and E15.

KAEP Responds to NPR’s Poorly Constructed Ethanol Story
December 28, 2010

Last week, National Public Radio (NPR) aired a week long segment on ethanol productions. This story, played on Kansas affiliated NPR stations, lacked substance, utilized bias, out-of-date information and portrayed an inaccurate picture of the current state of the ethanol industry.

The Kansas Association of Ethanol Processors (KAEP) would like to respond and provide the factual account of the state of the industry and its benefits for Kansas.

NPR Segment I: Energy In and Energy Out
The stance that NPR took on the energy equation in ethanol production represents a slanted and inaccurate energy portrayal of ethanol. According to a June 2010 U.S. Department of Agriculture report, one unit of fossil energy used in the corn ethanol production process results in 2.3 units of energy in the form of ethanol. On the other hand, researchers at the Department of Energy’s Argonne National Laboratory found that it takes 1.23 units of fossil energy to produce one unit of energy in the form of gasoline.

Ethanol’s current energy return is great, but even better is the constant improvement in ethanol production efficiency and the improvements in corn yields. The Kansas Corn Commission shares that, “The 2009 …Kansas crop produced over 822.7 million bushels of corn and sorghum combined, compared to about 700 million bushels in 2008.” Thus ethanol actually produces significantly more energy yield than gas while using 25 percent less energy to produce it.

NPR Segment II: Corn Conundrum: Food vs. Fuel
The NPR story’s blame of ethanol for raising food corn prices is totally misleading, essentially claiming that ethanol causes higher prices at food consumers’ tables. The narrowly painted picture forgets that in 2008 the USDA found that biofuels were responsible for only .2 of the 4.8 percent increase that grocery bills experienced in the first four months of 2008. In fact, for every dollar the food consumer spends at the grocery store, only 19 cents are farm cents and 3 cents out of that is corn cost.

The corn you buy in the grocery store is different from the corn that is utilized in ethanol production. Ethanol production uses what is commonly referred to as field corn. This corn is a feed stock for livestock. The great part of ethanol is that the usage of field corn in ethanol production provides for a by-product called distillers grain; meaning for every bushel of corn used in ethanol production, one-third is returned to the feed grain market.

NPR Segment III: Racing Toward E15 Acceptance
Prior to the EPA’s decision to allow E15 in 2007 models or newer, our fuel regulations essentially mandated that we use 90% oil to fuel our cars. Several peer reviewed studies have validated the safety and integrity of E15 fuel. According to Growth Energy, E15 fuel will add over 136,000 new, domestic jobs. Ethanol allows us to invest in our economy and national security instead of OPEC members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. Where would you rather invest?

NPR Segment IV: Bringing Together Small Towns
According to the Kansas Department of Commerce, Kansas has twelve ethanol plants with an annual production capacity of 519.5 million gallons. A typical ethanol plant provides 35 direct jobs in a community.

The Kansas Department of Commerce recognizes Ethanol’s logistical advantages in Kansas, and notes that Kansas is fourth in the nation for biomass production.

NPR Segment V: The Cellulosic Challenge
The NPR story highlights the benefits of the second generation of biofuels and recognizes the challenges. Second generation biofuels offer many benefits and complement first generation fuels. Continued research is occurring through Land-grant Universities like Kansas State, and we look forward to the new opportunities that biomass fuels offer the industry and our economy.

The Real Story
KAEP encourages consumers to look at the whole picture of the ethanol industry. The opportunities that are created through diversification of our energy supply are bountiful, and the renewable nature of ethanol makes it a wise investment. The economic multiplier impact of ethanol in the Kansas economy continues to support Kansas communities and consumers. KAEP encourages NPR to reevaluate their sources and share the real message of ethanol production: the story of ethanol as a tool toward future energy independence and an example of human innovation.