Renewable Fuels: Ready for the Fight Iowa Renewable Fuels
Summit January 30, 2013
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The Drought of 2012 2
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3 Iowas Ethanol Industry 41 operating ethanol plants with
capacity of 3.7 billion gallons 1.35 billion bushels of Iowa corn
57% of Iowas 2.36 billion bushel 2011 corn crop Converted to
ethanol and high-protein animal feed ~30% of nations ethanol
production
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High Protein Livestock Feed 4
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5 Iowas Biodiesel Industry 12 biodiesel plants with capacity of
nearly 315 million gallons 10 operated in 2012, producing 184
million gallons Nearly 18% of US biodiesel production
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Economic Impact of Renewable Fuels 6
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State of the Iowa Renewable Fuels Industry Ready to Fight!
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Iowa RFS Coalition DuPont Fagen, Inc. GROWMARK, Inc. Iowa
Biodiesel Board Iowa Biotechnology Association Iowa Corn Growers
Association Iowa Farm Bureau Federation Iowa-Nebraska Equipment
Dealers Association Iowa Renewable Fuels Association Iowa Soybean
Association Monsanto POET, LLC Syngenta 8
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9 Baseless Attack #1 Renewable fuels raise food prices and
starve the worlds poor.
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11 Food AND Fuel Fun Fact More tons of distillers grains are
produced each year by US ethanol plants than tons of feed are fed
to every cow in every US feed lot.
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12 Food AND Fuel Fun Fact US ethanol plants produce more tons
of nutritious animal feed than all US soybean crush plants.
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13 Food AND Fuel Fun Fact Food price inflation has been lower
during the RFS/ethanol era than in years prior. Average Annual US
Food Price Inflation 2005-present: 2.95 percent 1980-2004: 3.47
percent
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14 Food AND Fuel Fun Fact Since the RFS was expanded in 2007,
energy price inflation has been THREE times the rate of food price
inflation
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15 Food AND Fuel Fun Fact The 2012 Drought Inflation: October
2011 October 2012 Food: 1.7 percent Energy: 4 percent
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16 Food AND Fuel Fun Fact US ethanol producers use just 2.9% of
the global grain supply.
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17 Food AND Fuel Fun Fact World farmers are responding to the
higher grain prices and production and rural incomes are up.
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18 UN Food and Agriculture Organization investment in bioenergy
could spark much- needed investment in agricultural and transport
infrastructure in rural areas and, by creating jobs and boosting
household incomes, could alleviate poverty and food
insecurity.
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19 Baseless Attack #2 All livestock producers hate the
RFS.
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WHEREAS, the production of renewable fuels and their
co-products in the state of Iowa is beneficial to the Iowa cattle
industry. THEREFORE, BE IT RESOLVED, the Iowa Cattlemens
Association support renewable fuels production; and legislation
that promotes growth in renewable energy and supports initiatives
that maximize access to co-products for Iowas cattle industry.
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22 Baseless Attack #3 Renewable fuels/higher corn prices cause
farmers to rape the land and ruin the environment.
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Iowa CRP Acres 2000 Ethanol Production: 440 million gallons CRP
Acres: 1.599 million 2011 Ethanol Production: 3.7 billion gallons
CRP Acres: 1.664 million 29
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Higher Farm Income Reinvested According to a survey of farmers
invested in ethanol plants, since 2005 farmers have reinvested
their higher income: 63 percent purchased precision farming
equipment 61 percent instituted conservation practices like strip
tilling or no tilling 71 percent installed environmental
protections like buffer strips or wetlands 30
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The oil and gas industry gets no subsidies, zero, nothingWhat
we get are cost recovery measures. 31
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Oil Industry Specific Subsidies Percentage depletion allowance
Marginal oil well incentives Enhanced oil recovery credits
Intangible Drilling Costs expensing Deduction for tertiary
injectants Exception from passive loss limitations for oil and gas
Oil and gas excess percentage over cost depletion 32
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Western Capital Energy Development The immediate deduction of
the intangible drilling costs is very significant, and by taking
this up front deduction, the risk capital is effectively subsidized
by the government by reducing the participant's federal, and
possibly state income tax. 35
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Investopedia.com No other investment category in America can
compete with the smorgasbord of tax breaks that are available to
the oil and gas industry. 36
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Big Oils Century of Subsidies 39
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Federal Petroleum Mandate 40
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Federal Support for Fuels 42 Big OilRenewable Fuels Tax
SubsidiesPermanent: 100 years Temporary: 12 months Federal Pipeline
Loan Guarantees YesNo Fuel Distribution MonopolyYesNo Federal Use
Mandate85%10% Master Limited PartnershipsYesNo
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RFS2 Volumes 43
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Linn Co-op Oil Company 47
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B10 and E15 in the Fuel Tax Debate 48
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50 Web-Site & Contact Information www.IowaRFA.org
515-252-6249 [email protected] 5505 NW 88th Street Phone (515)
252-6249 Johnston, IA USA Fax (515) 225-0781 50131-2948 E-mail
[email protected]