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Legislative Update

Register now for the Ethanol 2010: Emerging Issues Forum
March 8, 2010

An impressive line-up of national leaders in ethanol production, marketing, co-products, transportation, engineering, financing and environmental issues will be on hand to provide relevant and useful information on today's fast-changing ethanol industry. The forum is designed to promote interaction between speakers and attendees.

Ethanol 2010: Emerging Issues Forum
Thursday 1pm — Friday Noon • April 8-9, 2010
Magnolia Hotel •1615 Howard Street • Omaha, NE 68102

www.ne-ethanol.org/forum2010

Keynote Address:
Responding to the Presidential Biofuels Directive-
The Role of USDA Rural Development
Dallas Tonsager, Undersecretary for Rural Development, USDA

Featured Presentation:
Critical Accounting: Documenting Efficiency in Ethanol Production
Steffen Mueller, principal research economist, University of Illinois-Chicago

Confirmed guest speakers include:
Douglas Durante—Executive Director, Clean Fuels Development Coalition
Rick Landenberger—Bosselman Energy
Trevor Hinz—Director of Global Business Development, ICM
Mark Baratta—Vice President, First National Bank Omaha
Dave Neubauer—Vice President and GM, Tenaska Biofuels
Cindy Bryant—Global Manager for Fuels, Novozymes

Download the registration form here (PDF).
Complete the form on your computer, print and mail with check or money order to:

Nebraska Ethanol Industry Coalition
PO Box 94843
Lincoln, NE 68509-4843

Nesika Energy Searches for General Manager

February 23, 2010

Nesika Energy, LLC in Scandia is searching for a new General Manager. Click here for the job position description, then apply online at www.icminc.com.

Abengoa Bioenergy and Mid-Kansas Electric Reach Agreement Concerning First Commercial-Scale Hybrid Cellulosic Ethanol and Power Plant in U.S.
January 26, 2010

Abengoa Bioenergy and Mid-Kansas Electric Company LLC (Mid-Kansas) announced plans concerning the development of the nation’s first commercial-scale hybrid cellulosic ethanol and power plant, Abengoa Bioenergy Hybrid of Kansas, LLC (ABHK). ABHK is a sustainable solution that will diversify electric generation in Kansas and help power the state’s growing demand for energy using Abengoa Bioenergy’s state-of-the-art, integrated bio-refinery technology and Mid-Kansas’ service capabilities.

An agreement between Abengoa Bioenergy and Mid-Kansas has been signed identifying the terms of a power purchase agreement for 75 megawatts of base load electricity. The electricity will be generated at the electric generation and cellulosic ethanol plant to be constructed in Stevens County, Kan., and will use biomass from crop residue as a fuel source.

“As an international energy company, we believe this project is an important part of our continual growth in bioenergy,” said Javier Salgado Leirado, president and CEO of Abengoa Bioenergy. “Advancing this project required the perfect match of agricultural resources, technology, and a utility partner—all present in our partnership with Mid-Kansas. The agreement terms allow us to move forward with the project and bring significant investment to Kansas.”

The facility will be constructed at a cost of $550 million and have the capability to generate electricity and produce cellulosic ethanol. The cellulosic ethanol facility will produce 15 million gallons of ethanol per year and use corn stover, wheat straw and switchgrass as fuel inputs. The plant will use 2,500 tons of biomass daily to produce ethanol and electricity. Start-up operations are expected in 2012.

The construction project will require nearly 100 full-time jobs during the 24-month construction period, generating $17 million in construction wages.

Once constructed, the plant will require approximately 90 full-time employees and will purchase $13 million of biomass annually from area farmers and purchase more than $3 million of other goods and services locally. The plant will pay $4.5 million in wages annually when operational, and it is expected that more than 50 additional jobs will be needed for biomass procurement. The plant will consume 10 percent to 12 percent of biomass within a 50 mile radius of the plant.

“The Mid-Kansas board is continually looking for opportunities to develop base load resources to add to the Mid-Kansas generation portfolio,” said L. Earl Watkins, Jr., president and chief executive officer of Mid-Kansas. “This power purchase agreement will generate base load while benefitting area farmers. We are pleased to support this effort and look forward to a successful relationship with Abengoa Bioenergy.”

The contract calls for Mid-Kansas to purchase all electricity from the facility for a 20-year contract period with rights to extend for additional years. Pioneer Electric Cooperative Inc. will provide retail electric service to the facility.

Kansas Agribusiness Retailers Association Invites KAEP Members to Attend 2010 Business Outlook

January 11, 2010

The Kansas Agribusiness Retailers Association is hosting an important 2010 Business Outlook on January 22 in Junction City, and KAEP members are invited to attend. The member registration cost is $125. Click here for details or to register.

*Please note that this event was originally scheduled for January 6 in Salina. Due to weather conditions, the date and location have been changed.

ICM, Inc. Selected as a U.S. Department of Energy Funding Award Recipient
December 4, 2009

ICM News Release

ICM, Inc. is pleased to announce that it is among 19 awardees selected by the U.S. Department of Energy (DOE) for a pilot/demonstration scale facility through the DOE’s Biomass Funding Opportunity Announcement - Demonstration of Integrated Biorefinery Operations. ICM received notification today that its application has been selected for negotiations leading to an award; the DOE grant amount is $25 million, and ICM expects to contribute more than $6 million of its own funds as its cost-share for the advanced biorefinery project.

Dave Vander Griend, president and CEO of ICM said, “We’re very excited to have been selected among a highly competitive and accomplished field of applicants for this funding award, and I’m so proud of our employees for their dedication in putting together such a solid proposal. The challenging economy that we’ve all experienced has been very difficult, but we have the tools available to greatly improve our economy and invest in our own future. We can produce homegrown fuels that can ultimately reduce our dependence on foreign oil, create job sustainability, and expand new opportunities for rural America.

The large investment in the advanced biorefinery projects from the American Recovery and Reinvestment Act and the Biorefinery Assistance Program authorized in the 2008 Farm Bill, are a testament to the government’s support of sustaining agriculture through innovation – which has always been the cornerstone of ICM’s mission,” continued Vander Griend.

Because the road to U.S. energy independence can most efficiently be completed by building on the renewable fuel already being produced by U.S. corn-based ethanol plants,ICM is intentionally co-locating its cellulosic ethanol demonstration project with ICM’s 1 million gallon per year corn-to-ethanol pilot ethanol plant that it operates at LifeLine Foods’ ethanol manufacturing facility in St. Joseph, MO. This strategic co-location will demonstrate the capability of an existing corn-based ethanol facility at pilot scale to increase its total renewable fuels capacity by also producing fuel-grade ethanol from nonfood cellulose materials, including switchgrass, forage sorghum, and corn fiber. The colocated cellulose demonstration scale project will not impact Lifeline’s 50 million gallon per year production capacity of ethanol in its corn-based facility at St. Joseph, MO.

ICM looks forward to collaborating with the DOE for the negotiation phase of the award over the next few months.

EPA E15 Waiver

December 2, 2009

Yesterday, Growth Energy held a conference call regarding the response letter from EPA regarding the E15 waiver (see attached letter). The conference call was led by Jeff Broin and General Wesley Clark, the co-chairs of Growth Energy and Tom Buis, the CEO of Growth Energy.

EPA's letter states that "it is clear that ethanol will need to be blended into gasoline in levels greater than the current limit of 10 percent…although all of the studies have not been completed, our engineering assessment to date indicates that the robust fuel, engine and emissions control systems on newer vehicles (likely 2001 and newer model years) will likely be able to accommodate higher ethanol blends, such as E15.

Growth Energy believes EPA has sent a strong message that may move to E15 by summer of 2010. The studies so far have been positive and if the rest of the studies (durability of autos) come back positive then will allow E15 which will result in 7 billion more gallons of ethanol, which will assist in cellulosic growth and job growth and reduce dependence on foreign oil.
There were 2 questions asked during the conference call. The first question was it appears the attitude of lawmakers in DC is very anti-ethanol and tax credit is in jeopardy? The response was that while the attitude has been negative, Growth Energy is working hard to turn around this attitude and they think there is a strong chance to renew tax credit and tariff but it will require a lot of work by a number of people to ensure that the real facts about ethanol are disseminated to the lawmakers.

The second question referred to the perceived pessimism about cellulosic and the investment climate and how does EPA's letter impact investments? It was the opinion of Growth that we needed to move blend wall to attract investors and this ruling points in that direction which will send a strong signal about ethanol and cellulosic in the future.

Growth Energy Launches Nationwide Campaign to Require Country of Origin Labeling for Fuel

September 1, 2009

General Wesley Clark, Co-Chairman of Growth Energy, today called on the United States Congress and the White House to take action to dramatically enhance the market transparency of the nation’s fuel supply by requiring a national standard of country of origin labeling (COOL) for fuel.

The Label My Fuel initiative would create a COOL standard similar to requirements already in place for common consumer items, including apples, beef, cars and coffee. The goal is to help create consumer awareness of the costs and national security implications of the nation’s addiction to foreign oil.

Clark also unveiled Growth Energy’s labelmyfuel.com, which showcases the costs of American dependence on foreign oil, and serves to rally grassroots support for Congressional action on COOL for fuel legislation.

Clark said:

“America’s dependence on foreign oil has a staggering impact on both our national and economic security. Supply disruptions and sudden price hikes have shocked the wallets and pocketbooks of everyday Americans one too many times.

“The American people deserve to know the truth about the hidden costs of oil: The neighborhood filling station doesn’t pump neighborhood gas – it pumps a product of foreign origin that costs consumers and taxpayers billions of dollars every year. It’s past time for the American people to understand what our dependence on foreign oil costs our country and what they can do to help stop it.”

The economic implications of America’s dependence on foreign oil are astounding:

The U.S. Department of Energy found that America’s dependence on foreign oil has cost our country more than $7 trillion dollars over the last 30 years.

The United States has sent as much as $500 billion a year overseas for oil – a massive transfer of wealth.

The Center for Forensic Economic Studies estimates that for every dollar spent on foreign crude oil, an additional $1.55 is removed from the U.S. economy.

According to the Institute for the Analysis of Global Security, American taxpayers foot a $50 billion-a-year bill to secure petroleum shipping lanes.

“American ethanol is the only existing alternative to gasoline today that is creating jobs, cutting greenhouse gas emissions and reducing our dependence on foreign oil,” said Tom Buis, Growth Energy CEO. “Country of origin labeling for fuel will let consumers know if they are pumping a domestic-made fuel, like ethanol, or fuel from a foreign source.”

Clark made today’s announcement at the 2009 Farm Progress Show in Decatur, Ill., the nation’s leading exhibition of advanced technology, business practices and manufacturing for today’s agricultural producers.

“The American people deserve to know more about the gasoline they purchase every day – where it comes from and where their hard-earned dollars ultimately go every time they fill up their cars and trucks,” Clark said. “Most Americans don’t want their paychecks going to Venezuela and other regimes that don’t agree with and support the U.S. Requiring country of origin labeling of our fuel supply will empower consumers with the knowledge and ability to make informed decisions.”

Rep. Josh Svaty Named Acting Secretary of Ag
July 15, 2009

Yesterday, Governor Mark Parkinson named State Representative Josh Svaty as Acting Secretary of Agriculture pending Senate confirmation. As the ranking Democrat on the House Agriculture Committee, KAEP has an excellent working relationship with the new acting Secretary and will find him to be a great asset to the agency. We look forward to working with him is his new capacity.

We also wish to relay our appreciation to outgoing Secretary Adrian Polansky who has accepted a position with the Obama administration as Kansas State Executive Director for the Farm Service Agency at the U.S.Department of Agriculture.

Please see the press release from the Governor's office announcing the appointment.