I had to break in when I heard that. “No,” I said, “You’re falling for big oil’s propoganda.”

Big oil would like us all to blame the biofuel industry for high food prices, but it just isn’t so. I explained to my friends that far more of our corn and soybean crops are used to feed livestock than to produce biofuels. And then we eat the livestock. And nobody wants to give up their Whoppers.

Does this mean we should blame the livestock industry? Do we all become vegetarians? No, that would be just as silly and ignorant as blaming the biofuels industry (although it wouldn’t hurt any of us to eat less meat). So, as you’re cooking out this Fourth of July weekend, if you want to look for something to blame for high food prices, don’t blame biofuels. The real culprit is the high cost of transporting food to market, and that, my friends, is caused by skyrocketing fuel prices. Which takes us full circle, back to the question of why diesel fuel has become so much more expensive than gasoline. Sinister, isn’t it?

So why is it that today, in 2008, those visionaries are feeling completely ripped off? Why is diesel so much more expensive than gasoline? To find an answer, I did what any good journalist does: I turned to the Google. What I found there was less that satisfactory, to put it mildly, but it was a start. I found a couple online entries that quoted this statement from the Energy Information Administration:

“Until several years ago, the average price of diesel fuel was usually lower than the average price of gasoline. In some winters when the demand for distillate heating oil was high, the price of diesel fuel rose above the gasoline price. Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the U.S., putting more pressure on the tight global refining capacity. In the U.S., the transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline.”

At face value, the reasons stated in this quote seem reasonable. Growing global demand and tight production… sure, sure, I get it. But those market conditions are also affecting the price of gasoline, so how is it that the price of diesel fuel has leapfrogged that of gasoline?? If the same forces are affecting both, shouldn’t the two prices be growing at approximately the same rate, and in approximately the same relation to each other? And the argument about the switch to Ultra-Low Sulfur Diesel Fuel doesn’t quite sit right with me, either… After all, ULSD was introduced to the market in mid-2006; why didn’t the price skyrocket two years ago?

Is there an answer to the question? Is it supply and demand, or is there something more sinsiter going on? What do you think?

It’s going to take a long time–long after the flood waters have descended–to determine the full extent of the damage, but there is one effect we may see fairly soon. Here in my town, E85 ethanol has been selling for a full dollar a gallon less than regular unleaded gasoline–$2.99 vs. $3.99–but I wonder if that may change. This morning I heard on the radio that the floods are taking a very heavy toll on the corn and soybean crops in the midwestern states. The report stated that as much as 21 percent of the corn crop may already be lost, which, of course, will put upward pressure on the price of E85.

Losses to the soybean crop are harder to estimate, since the problem there is that the traditional June 10 planting day for soybeans now has to be pushed back indefinitely, and no one can say how that delay will ultimately affect the harvest. It is safe to predict, however, that the price of biodiesel will be adversely affected by a smaller than expected soybean harvest.

Of course, Hurricane Katrina taught us that Mother Nature can be a much more menacing foe than OPEC when it comes to affecting energy costs. Now here we are, a few years later, facing a similar threat, only this time two of the best solutions we have to our energy crisis–ethanol and biodiesel–may soon become part of the problem.

First of all, I’d like to say that it is possible to disagree with the the national defense policies of this administration and still support our troops, AND, yes, still be a patriot. The propensity to equate disapproval of the invasion of Iraq with a lack of patiotism or a lack of support for our armed forces is part of the divisive sickness that has infected our country and our public discourse for the past eight years, and I for one will be happy to see that end. In no way did I mean to criticise our troops or denigrate their work. By not using gasoline over Memorial Day weekend, I was showing my sincere support for the work that our soldiers are doing and the risks they are taking in the name of our wonderful country, and I can’t believe that anyone would criticize me for that.

I would also like to say that there is not a single Iraqi that I’m aware of–from Saddam Hussein on down–who has ever directly threatened my freedom of speech or my freedom of the press. You may not agree with me over that, but I think you’d have a hard time proving that I’m wrong. Likewise, you may not agree that not using gas over Memorial Day weekend is a fitting tribute to our troops, but how does reducing our need for oil from the Middle East, even in my small way, hurt the situation?

So, instead of filling up the tank and driving across the state for the three-day weekend, we found things to do right in our own backyard, and I made a bet with myself that I would get through the weekend with only the eighth of a tank of gas I had in my car. What did we do? Well, relying heavily on our own personal motive power, we took advantage of the community farmers’ market, the annual “Buckskinners Rendezvous” taking place in the park next door to our house, the tennis courts across the street, the community bike path, and the river a block away. Oh yeah, and the Weber grill, the local ice cream stand and a deck of cards! In the course of three days, we got around on our bicycles, our canoe, our rollerblades, and, last but not least, our feet.

Okay, we did cheat a little by going to the drive-in movie theater on Saturday night, but that’s only six miles away… In the end, I won my bet with myself, and didn’t have to buy gas all weekend. And you know what? We all had a great time, we all got plenty of sunshine, fresh air and exercise, and we didn’t miss driving the car one little bit…

Last week I saw further proof at the Alternative Fuels & Vehicles National Conference in Las Vegas, NV. I was moderating a panel discussion on fuel efficiency technology for medium- and heavy-duty vehicles, and I asked how many in the crowd of about 250 people how many of them were fleet managers who were under orders to “green” their fleets. About three-quarters of the people in the room raised their hands, and I have to say it was an impressive sight!

On the other hand, I also took part in a panel discussion with several other transportation journalists on the future of transportation, and one gentleman in the audience called us all on the carpet for being alarmists. An engine rebuilder from California, this gentleman didn’t believe there was any need for alternative fuel vehicles or hybrids–he went as far as to say, “I don’t believe you that we have to solve this problem in the next five years. I don’t think we need to solve this problem within the next five hundred years!”

If we really don’t need to solve this problem for the next five hundred years, I guess Toyota will look a little stupid, what with all those Pruises out there… What do you think? Do we have a five year window, or five hundred? Have we reached peak oil, or peak hysteria?

Today, I got such a reminder. Today, I received a press release from CALSTART, a group that bills itself as “North America’s leading advanced transportation technologies consortium,” announcing the winners of their 2008 “Blue Sky Awards,” and it made my day. You see, there’s not just one award; there are serveral, and the winners are a pretty impressive lot.

First up is Eaton Corporation, of Cleveland, Ohio, winners of the Blue Sky Award™ for “being the world’s first in developing and bringing to market both hybrid electric and hybrid hydraulic systems for medium and heavy commercial vehicles.” Next up, Business Region Göteborg of Sweden won the Charles R. Imbrecht Blue Sky Innovation Award™ for “catalyzing Sweden’s use of biomethane as a renewable transportation fuel now powering 4,500 natural gas cars, trucks and buses and a commuter train.” Southern Counties Express, Inc., of Los Angeles, Calif., won a Blue Sky Merit Award™ for “buying a fleet of liquefied natural gas (LNG) port trucks and operating an LNG fueling station that is publicly available to the port trucking community.” Union Pacific Railroad Co. (NYSE:UPN), of Omaha, Neb., won a Blue Sky Merit Award™ for “the development, procurement and deployment of more than 150 ultra-low emitting ‘Genset’ multi-engine diesel switching locomotives.” And last but not least, ZipCar, of San Francisco, Calif., won a Blue Sky Merit Award™ for its car-sharing program and “its impact on the environment, reduction of parking demands, lessening of traffic congestion and greenhouse emissions.”

We here at Fuel Advantage magazine congratulate these winners, and we thank them for the positive contributions they have made to the world. If they keep this up, we may not need this magazine much longer!

Why am I such a big fan? Because the people who attend this event aren’t just flapping their jaws about pie-in-the-sky solutions to our nation’s fuel problems; they’re putting real solutions in place today, and they’re making things happen now. This event, to be held May 11-14, is jam-packed with amazing educational sessions, an eye-popping technology showcase, a fantastic ride-and-drive (with vehicles that can get 175 mpg!) and numerous networking opportunities. And, best of all, Tuesday, May 13th is “Fleet Day,” an entire day dedicated to addressing the needs and concerns of fleet managers and operators. If you are considering biodiesel, natural gas, ethanol, propane or electric vehicles for your fleet, you’ll find an educational session on Fleet Day that will answer your questions and put you in touch with the right people to help you on your way. I’ll even be moderating a panel that day on fuel-saving technologies for medium- and heavy-duty trucks.

To register for the Alternative Fuels & Vehicles National Conference & Expo, click here.

Here in the Midwest, E85 is cheap and plentiful. It normally sells for about 60 cents a gallon less than a gallon of regular unleaded gasoline. What could be better? I could go to Indianapolis and back and use a fraction of the gasoline, and spend a fraction of the money, that I would have used in a regular vehicle!

There was no way of knowing what was already in the Uplander’s tank of course, but I was hopeful that the previous renter had had the wisdom to fill up with E85. So I set out for Indianapolis, confident that I would be making at least a small difference.

I only used three-quarters of a tank on the drive to Indy, so when I set out for home the next day I knew the moment of truth would come, oh… about midway through Illinois. And Illinois, like Wisconsin and Indiana, is corn country. I knew there would be E85 stations along the interstate every few miles, offering cheap, clean, domestically-produced ethanol at bargain prices. I even started seeing Burma-shave style rhyming roadsigns in cornfields! Oh yes, this was ethanol heaven, for sure.

But as my gas gauge sank closer and closer to ‘E’, I started to worry. I hadn’t seen any sign that the filling stations along the highway were selling E85, and when I started pulling off into the small towns of eastern Illinois, I found station after station selling straight gasoline, and nothing more. I even asked a clerk at one filling station if she knew of any stations in the area that sold E85. She looked at me blankly and said, “E-what?”

Discouraged, I put $20 of regular gas in the tank and kept looking, but I came up empty. No E85 in sight. What could have gone wrong? Well, I could have done the smart thing and checked the National Ethanol Vehicle Coalition Website (www.e85fuel.com) and found the addresses to 170 stations in Illinois that sell E85–you read that right: 170! But I was not smart. I wanted to see if I could find the magic fuel unaided, and in that I failed. I drove home on expensive, dirty, imported gasoline, but filled up with E85 in my hometown before returning the van.

Lesson learned: the good stuff is out there, but for now, doing the right thing involves a little legwork. Next time I’ll know better. And maybe, next time those E85 pumps will be a little more visible to the unaided eye.

A story last week in the Knoxville, TN, News Sentinel led off with the headline: “IdleAire reports growing losses–Company’s SEC filing expresses ’substantial doubt’ about future.” You know IdleAire: they make the truck-stop electrification (TSE) units that slide in through the window of a truck cab, attached by a yellow flexible umbilical cord to an overhead HVAC unit. It’s a slick package, and I have talked to truck drivers who love this system because it meets all their needs at a moderate cost, and doesn’t require them to alter their truck at all.

But it does require that the truck be at a truck stop. And not just any truck stop: it has to be at one of the relatively few truck stops that have IdleAire installations. Now, what if your truck needs to cross into California? Even if you run your truck idle-free at IdleAire stations in during rest periods in the 47 other lower states, you might mot be able to do it in California. There might not be an installation where your truck needs to be. Even if there is, there may not be a stall available. Maybe you’ve chosen IdleAire over installing an APU or battery-powered on-board system. Then what?

I have a sneaking suspicion that as more and more fleets and owner-operators opt for on-board idle-reduction systems in order to do business in California, fewer and fewer of them are paying for IdleAire services. And I don’t see any way to reverse that trend. Do you?