States Consider Increased Ethanol Usage as Alternative to High-Priced Gasoline (10-4-05)
As gasoline prices remain at unprecedented highs, many states across
the country are emphasizing the use of ethanol as a way to reduce
pump prices and decrease dependence on foreign oil, notes the National
Corn Growers Association (NCGA).
Just last week, California Gov. Arnold Schwarzenegger
signed into law a bill that will advance the state’s usage
of renewable energy such as ethanol, while aiding in reducing its
dependence on foreign oil. Minnesota, Montana and Hawaii already
have legislation on the books that requires ethanol to make up
at least 10 percent of the respective states’ gasoline pool. Earlier
this year, Minnesota passed a law that will require renewable fuels
to constitute 20 percent of transportation fuel demand by 2012.
Wisconsin, Iowa, Missouri, Idaho, Oregon and Colorado are among
the other states that are considering measures to increase statewide
ethanol use.
The California bill, A.B. 1007 will require development and adoption
of a state plan to increase the use of renewable fuels by 2007. The
bill is expected to positively influence California's consideration
of increasing the state gasoline pool's ethanol content from 5.7
percent to 10 percent. Such an increase would create an additional
market for roughly 630 million gallons of ethanol per year.
Along with the consumer benefits offered by
renewable fuels comes increased economic vitality for states involved
in ethanol production and usage, according to Bruce Noel, a Michigan
farmer and chairman of NCGA’s Ethanol Committee.
“Growers will tell you they have seen
firsthand what the renewable energy industry has done economically
for their states,” Noel
said. “I know in my state of Michigan, we have grown from one
ethanol plant to five ethanol plants coming online by the end of
2005. We are also expecting a biodiesel plant within the next year.
With continued strong advocacy at the state level, other states will
begin to recognize the benefits we are already seeing.”
Within the last month, Wisconsin has been
considering a 10 percent ethanol requirement; Iowa’s Senator Jim Nussle (R-Iowa) has
called for a 20 percent renewables mandate for that state; Colorado
lawmakers are considering a plan that would require all gasoline
stations in the state to offer fuels with ethanol with state Sen.
Brandon Shaffer proposing a 7 percent mandate by 2007; gradually
increasing by 20 percent by 2013 and Gov. Tim Pawlenty of Minnesota
issued a challenge to the nation’s governors at the recent
Governors Ethanol Coalition meeting to move to a 10 percent ethanol
mix in gasoline by 2010.