From: Kime, Robin
Location:
DCRoomARN3500/OPEI
Importance:
Normal
Subject: Meeting with Jerry Jung
Start Date/Time: Wed 7/26/2017 5:00:00 PM
End Date/Time:
Wed 7/26/2017 5:30:00 PM
Jung Rethink Ethanol Opinion Washington Times EnergySection Final (D.pdf
Bio (16).docx
Directions: Please use the William Jefferson Clinton North Entrance located on your right as you exit the Federal Triangle Metro Station. Please arrive 10 minutes prior to the meeting with photo IDs to clear Security.
EPA Contact: For an escort from Security to the meeting call (202) 564-4332; for all other matters call Robin Kime (202)564-6587.
From: Jerry Jung [ Sent: Friday, April 28, 2017 3:08 PM To: Dravis, Samantha < Cc: Bill Schuette <
]
> >
I reached out to Mr. Schuette to give me your contact information because I wanted to keep Mr. Pruitt's office in the loop regarding op eds in the Washington Times. The Times will be running a section on energy. When they have asked me to submit an op-ed on the topic of ethanol, they mentioned that they would also be publishing an op-ed from Mr. Pruitt.
Attached is what I have submitted. I suspect that my views are in line with those of Mr. Pruitt, but I wanted to provide him an opportunity to comment on what I wrote. Any comments or suggestions that his office has would be welcome.
Jerry Jung
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Jerrold M. Jung
586-850-8096
jerrold.m.jung@gmail.com
P.O. Box 7060 Novi, Ml 48376
Employment background:
Over $1,000,000,000 of shareholder value created by companies that I founded or controlled.
Surety Bond analyst for Travelers Indemnity Company from 1977 to 1978.
Director of Reservations for Continental Airlines from 1979 to 1982.
Designed from 1983 to 1985 passenger revenue optimization software still used by over 50 air carriers.
General Manager of Michigan CAT's Engine Division from 1983 to 1987.
Founded Landfill Energy Systems in 1987. The EPA awarded this alternate energy company a certificate that declared that methane reduction achieved by its power plants was equivalent to taking 800,000 cars off of the road. Company was sold in 2008.
CEO of Michigan CAT from 1988 to 2011. Market share rose to 60% from 25%. Revenues peaked at $550,000,000 and employment at 880. The business was sold in 2011 because my children have other career interests.
Chairman and founder of Oak Adaptive, Inc. that provides software tailored to Caterpillar dealers as well as an innovative sentencing app that provides information for use within the criminal justice system.
Currently semi-retired and manage Rule of Ones, LLC an investment vehicle.
Educational background:
Graduated from Birmingham Seaholm High School in 1971. Received Bausch-Lomb Award for outstanding high school students. On committee that established Bingham Farms Nature Center. Varsity letter in Track.
Attended University of Michigan from 1971 to 1973. Phi Eta Sigma honor fraternity.
Graduated from Tulane University in 1975, 1st in class, summa cum laude with honors in economics. Phi Beta Kappa honor fraternity. Commodore of sailing club.
Attended Harvard Graduate School of Business in 1976.
Co-authored "Price Elasticity of Demand for Air Travel." Published in the 1976 fall edition of Transport Economics and Policy. This paper informed Congressional debate when airline fares were deregulated. It is still utilized as instructional material at the University of Chicago School of Public Policy.
Affiliations:
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Chair of Michigan Colleges Alliance, a group of 15 private independent colleges. Board member of the Michigan League of Conservation Voters. Board member of Public School Academies of Detroit. Board member of 6,000,000 member National Wildlife Federation. Chair of the Michigan State Transportation Commission from 2010 until 2015. Past Director of Warren Equipment Company, a Texas based gas compression fabricator and Caterpillar dealer with revenues in excess of $1,000,000,000. Past Vice-Chair of St. Mary Hospital in Livonia Michigan. Past Trustee of the Nature Conservancy in Michigan. Past President of the Michigan Construction Equipment Dealers Association. Past Board Member of the Cooperative Tractor Dealers Association--a financing co-op. Past Board Member of NWEA--the National Wood Energy Association. Philanthropic Endeavors: Supports a wide variety of environmental and educational initiatives that improve the legacy we leave to future generations. Founded in conjunction with the Michigan Colleges Alliance the "Third 90" program that annually introduces hundreds of inner city high school students to nature as well as to private college professors, students and campuses. Founded "RethinkEthanol.com" an entity that educates legislators and the public about the need for corn ethanol reform. Honors: Scenic Michigan--"Hero Award" 2009 Michigan Infrastructure and Transportation Association--Honorary Member Award: 2012 Michigan Aggregate Association-- Distinguished Service Award: 2012 Detroit Public TV--Riley Stewardship Award: 2012 Michigan League of Conservation Voters--Lifetime Conservation Award: 2013 Tribute from Michigan Transportation Commission--Resolution 2015-2. The State of Michigan named a roadside park in my honor. Honorary Ph.D. from Adrian College in May of 2017. References: (contact information provided upon request)
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Governor Rick Snyder. National Wildlife CEO Collin O'Mara. Former CEO of Warren Equipment Company and Dallas Federal Reserve board member Richard Folger. Director Michigan Department of Transportation Kirk Steudle. CEO and Chairman of Caterpillar Tractor Company Doug Oberhelmen. Congressman David Trott. Michigan Republican Chair Ronna Romney McDaniel. Former Secretary of Agriculture and Caterpillar Tractor Board Member Clayton Yeutter. DTE Energy Chairman Gerry Anderson. Recently retired CEO of International Transmission Company Joe Welch. Past owner of Thompson McCully Paving Company and charter school visionary Bob Thompson. Former Ambassador to Belgium Allan Blankenship. Personal: Reside in Birmingham Michigan. Married to Eve Baughman Jung. Have three children, three grandchildren and two stepchildren. Enjoy outdoor activities such as gardening, hiking, hunting, fishing, golfing, sailing and skiing. Practice "eco-restoration" on several properties in Michigan. Own and manage for bio-diversity and carbon sequestration over 43,000 acres of forestland in central Tennessee.
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| " 418$*'- &1035 1&1"38?/o :# 5^ 4 )*/(5 0 / 5 *8 4 "% '0 $ "$ : /&1"35. 8/5
It's time to rethink ethanol mandates
By Jerry Jung
out that by-products from the dst i I la
$20 of value, and to cattle, about $50 of Republican primary in Iowa.
tion process can be fed to livestock, but value. It is this value-added chain that
There are many other reasons to
studies such as one published by the creates rural employment and economic discontinue ethanol mandates. Dozens of
University of Nebraska point out that the diversity.
diverse stakeholder groups, representing
practice of feeding distillates to cattle
It is not uncommon to see hand-
fiscal conservatives; small and marine
shortens the shelf I ife of thei r meat.
painted signs in Iowa that read "Fam
engine usersand manufacturers; food
Other studies indicate that the practice ily Farms, not Factory Farms." A poll producersand food justice groups; char
alters the flavor of meat and can make conducted by a leading conservation ter boat captains; The Sierra Club, The
livestock sick.
organization shows surprising opposi National Wildlife Federation and the
The price of corn shot up to $8 per tion to ethanol mandates in rural areas. Audubon Society; and even the Ameri -
bushel when the mandate was dra
It is no wonder, since these are the
can Petroleum Institute are opposed to
matically ramped up nine yearsago. As populations most a- Sleeted in terms of subsidized and mandated corn ethanol
a result, there were food riots in some water quality and outdoor recreational production.
countries where corn is a dietary staple. opportunities. These are the families
Ironic, is it not, that a mandate sold
Since then, the amount of acreage de- that must confront chemical pollution to Congress and the public as "green" is
h s year the Environmental Protection Agency (EPA) has
Ethanol is a low-value commodity. A bushel of com will produce 2.8 gallons of ethanol worth about $4.50. | #e same com, fed to poultry, produces
I mandated that 15 billion gal lons of ethanol be added to gasoline. As a result, most gasoline contains about 10 Initially, apuetrocmenotteivtheamnoaln. ufacturers
about $20 of value, and to cattle, about $50 of value. It is this valueadded chain that creates rural employment and economic diversity.
voted to growing corn has increased
arguably the biggest polluter of air and
saw the mandate as a cheap way to i n -
to over 35 million acres in the U.S.
water in the U.S.? The policy has also
crease octane ratings, and corn growers (larger than most states) and the
been a significant driver of what
thought it would be a boon to the agri price is back where it started. cultural economy. Casual observersand Unfortunately, much of
has aptly been termed the Sixth Extinction of biodiversity.
even some conservation organizations this land is ecologically sensitive. The National
Fortunately, legislation has been introduced in the
thought that it was a renewable source of Wildlife Federation
House of Representatives
energy that would help the environment estimates that 10 mil
that would cap the etha
and reduce harmful emissions. Others lion acres in the U.S.
nol content of gasoline
saw it as a way to reduce dependence on have been converted
at 10 percent and reduce
foreign oil.
from Conservation
mandates over time.
After eight years of dramatically in Reserve Programs
Urge your members of
creasing mandates, the results are in and --virgin prairie,
Congress to support
it is apparent that none of these goals woodlands and wet -
this legislation.
have been met -- in fact, the opposite is lands in the U.S. --
The EPA can also
true.
to grow corn over
play a vital role as they
Due to an arcane and fraud-prone the last 10 years.
work with automobile
ethanol credit trading scheme, the price The careful reader
companies imple
of higher-octane gasoline has skyrock might question how 35
menting improved fuel
eted, relative to lower grades; the farm million acres are grow
economy standards.
economy continues its decline; finite ing corn for ethanol,
The first step in this
resources such as phosphorus and sub - but "only" 10 million new
regard would betoelimi -
terranean aquifers are being depleted; acres have been converted
nate artificial incentives to
wildlife and biodiversity are being
to agricultural use in the U.S.
produce ethanol. Currently, the
threatened; harmful emissions have
Much of this acreage used to
EPA gives CAFE mileage bonuses
doubled; and the mandate has had no grow soybeans for export. Typi
to gas guzzlers if they can consume
impact on reducing use of fossil fuels.
cally, farmers would rotate between
gasoline that is up to 85 percent ethanol.
How can this be?
corn and soybeans, but now many grow
Credits are also given to compensate for
The answer is simple -- it takes as corn year after year.
the reduced energy content of ethanol
much fossil fuel to produce ethanol from South America has filled the void, and that are at a competitive disadvan as compared to pure gasoline. Given the
corn as it yields.
with the result that Brazil now exports tage against huge absentee landowners, environmental destruction and excessive
A Cornell University study estimates more soybeans than the U.S. -- with the when it comes to low-value commod
use of fossil fuels consumed in the pro
that it takes 40 percent more energy to concomitant destruction of forest and ity products. Look no further than the duction of ethanol, these credits should
produce corn ethanol than it yields. The grasslands in that country, not to men City of Des Moines water authority's realistically be debits. It is impera -
actual distillation of corn into ethanol tion an increased trade deficit here in lawsuit against upstream agricultural tive that the EPA consider the overall
consumes about 28 percent as much
this country.
districts. Look no further than the City economic and environmental impact of
energy as it produces; yet when all the
A recent study discussed by a Con of Toledo that shut down water supplies their policies and not focus solely on a
inputs required to grow corn -- such as servative Political Action Committee to hundreds of thousands of residents single aspect of the overall picture.
the production of herbicides, insecti
panel in February concludes that the because of nutrient-fed toxic algae. Look
cides, fertilizer and the fuel for tractors farm economy continues its decline
no further than the just-released U.S. Jerry Jung is a retired businessman and
and transportation -- are factored in, the despite -- and perhaps because of -- Geological Survey study that confirmed conservationist who became concerned
equation changes. Even the U.S. Depart ethanol mandates.
deadly "neo-nic" insecticides in Iowa when Monarch Butterfliesstopped arriv
ment of Agriculture, a misguided pro
Ethanol is a low-value commodity. A drinking water. Perhaps it is no acci
ing at his hobby farm in central Michigan
ponent of ethanol production, estimates bushel of corn will produce 2.8 gallons dent that Texas Sen. Ted Cruz, who has after migrating from Mexico. The pollina
that the energy output only slightly
of ethanol worth about $4.50. The same never supported ethanol mandates or tor's population has declined by 95 percent
exceeds the inputs. The agency points corn, fed to poultry, produces about
costly agricultural subsidies, won the since the ramp-up in ethanol mandates.
5684%: t
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ASPECI. REPORT PREPARED BYTHE WASHINGTON TIMES ADVOCACY DEP/ARWIENT 568470:t
RethinkEthanol.com
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