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GEC Meeting 2005: The Environmental Benefits of Ethanol March 1, 2005

GEC Meeting 2005: The Environmental Benefits of Ethanol March 1, 2005. Carol Werner, Executive Director Environmental & Energy Study Institute (EESI) 122 C St. NW, Suite 630 Washington, DC 20001 Phone: (202) 662-1881 Fax: (202) 628-1825 www.eesi.org.

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GEC Meeting 2005: The Environmental Benefits of Ethanol March 1, 2005

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  1. GEC Meeting 2005: The Environmental Benefits of EthanolMarch 1, 2005 Carol Werner, Executive Director Environmental & Energy Study Institute (EESI) 122 C St. NW, Suite 630 Washington, DC 20001 Phone: (202) 662-1881 Fax: (202) 628-1825 www.eesi.org

  2. Environmental and Energy Study Institute (EESI) • Dedicated to promoting sustainable societies through innovative policies on energy, climate, transportation, agriculture, and smart growth. • Founded in 1984, by a bipartisan Congressional Caucus • Provides timely information regarding science, policy, and technologies. • Organizes ~20 Congressional briefings a year. • Builds Coalitions and networks. • Publishes 3 electronic newsletters. www.eesi.org

  3. Environmental Drivers for Shifting Current Fuel Use • Air pollution from emissions • SOx, NOx, CO, VOC’s • Water Pollution • MTBE, Oil Spills, run-off • Climate Change • 30 percent of our CO2 emissions from Transportation • 2 percent of global CO2 emissions from California.

  4. Emissions from Petroleum based fuels • CO-70-90% of total emissions • NOx- 45-50% of total emission • 178,000 mtons*, 52.7 million mton CO2 equiv. (2003) • VOC’s- 40-50% of emissions • CO2- 30% of total emissions • 1.87 billion mtons*(2003) • SOx-5% of total emissions from transport. *Data from EIA for Transportation Sector. Emission levels for 2004 not yet published Percentages Source: Rodrigue, J.P.“Air Pollutants Emitted by Transport System,” Hofstra University, 8/25/03

  5. Oil Spills • Total Oil Spills since 2000: • 83 spills of 7-700 tons • 19 spills of >700 tons • total = 146,000 tons • 1.5 million gallons spilled into U.S. oceans in a typical year. (assuming no large spills) Source: ITOPF [International Tanker Owners Pollution Federation]http://www.itopf.com/index2.html Source: Environmental Protection Agency

  6. The “Real Cost” of Oil • Total U.S. Oil Imports: • Currently 11.8 million barrels/day (55% of U.S. petroleum use), • price ranging from $42-$52/barrel [2/24/05] • $166 billion spent on net U.S. petroleum, imports in 2004. • Energy Security Concerns • Growing India and China Oil Demand Source: EIA: http://www.eia.doe.gov/emeu/ebr/ebrnoi.html

  7. Ethanol: AllowsVariety of Feedstocks • Corn-2004 consumed 11% of corn produced • Sorghum- 2004 consumed 11% of sorghum produced. • Cellulosic Ethanol- • Corn fiber, corn stover, switchgrass, willow, hybrid poplars, sugar cane bagasse, Ag wastes, etc. • Feedstocks available across the country • Critical for major growth of % of transport fuel • Builds urban/rural bridge: Good for Americans- not just Ag. Source: Renewable Fuels Association

  8. Benefits of 10% Ethanol-blends on Air Pollution • Reduces GHG emissions by 12-19% • 5.7 million mtons CO2 emissions avoided in 2003 • Reduces CO emissions by 30% • Reduces exhaust VOC’s by 12% • Sign. Formaldehyde reductions, offset slight increase in PAN and acetylaldehyde. • Reduces toxic emissions by 30% • Backs out >50% of benzene • Higher blends yield much greater benefits Source: Renewable Fuels Association, http://www.ethanolrfa.org/factfic_envir.html

  9. Additional Environmental Benefits of Ethanol • Biodegradable- no problem in case of spill or leak. • Alternative to traditional waste disposal (e.g. forest thinnings, rice straw, MSW used for cellulosic ethanol) • Public Health- 55% or 158 million Americans live in counties with unhealthy levels of ozone or particulate matter.* • Sustainable- unlike oil ~~~~~~~~~~~~~~~~~~~~~~~~~~ BUT….Environmental misinformation on ethanol must be addressed…. *2004 State of the Air Report, American Lung Association

  10. Reductions in GHG Emissions due to Ethanol Use Source: International Energy Administration. Biofuels for Transport, an International Perspective,May 11, 2004

  11. Federal Policy DriversKyoto Protocol entered into force Feb. 16 Proposed Climate Legislation • Sens. McCain (R-AZ) and Lieberman (D-CT) and Reps. Gilchrest (R-MD) and Olver (D-MA) offered: • Climate Stewardship Act (S. 342, HR. 759): Sets mandatory caps on CO2 as well as cap and trade system. • Sen. Hagel (R-NE) offered 3 bills 2/16/05: • Climate Change Technology Deployment in Developing Nation’s Act (S. 386): share tech. advances with developing nations • Climate Change Technology Incentives Tax Act (S. 387): makes permanent the current CC R&D tax incentive. • Climate Change Technology Deployment Act (S. 388): encourage tech. demonstration projects in US. • Sen. Jeffords (I-VT) offered: • Clean Power Act of 2005 (S. 150):to amend the Clean Air Act, allows for the use of RET’s [wind, biomass, landfill gas, geothermal, solar thermal, and renewable-based fuel cells] NOTE: Sen. Carper will be introducing climate legislation shortly. Viewed as ‘compromise’ of Clear Skies Act and Climate Stewardship Act.

  12. Pending Renewable Portfolio Standard Legislation • Rep. Lynn Woolsey (D-CA) • “The Renewable Energy and Energy Efficiency Act (REEA)” (HR. 737),2/9/05, with a goal of 20% of power coming from non-hydro renewables by 2020. Authorizes $12.3 billion over next 5 years for R&D and commercialization. • Sen. Jeffords (I-VT) and Sen. Collins (R-ME) • “Renewable Energy Investment Act of 2005” (S. 427) 2/17/05, establishes an RPS of 5% in 2006 and 20% in 2020 from domestic renewable energy sources, such as solar, wind, and biomass energy technologies. • Rep. Udall (D-CO) and Rep. Leach (R-IA) • (HR. 963), 2/17/05, establishes an RPS of 10% by 2017 and 20% by 2027.

  13. Pending Federal Biofuel Legislation • Rep. Kaptur (D-OH) offered • Biofuels Energy Independence Act of 2005(HR.388) to provide for a Biofuels Feedstocks Energy Reserve and to authorize USDA to make and guarantee loans for the production, distribution, development, and storage of biofuels. • Rep. King (R-IA) offered • (HR. 36) to amend the tax code to increase tax credits for small agri-biodiesel and small-ethanol producers. • Renewable Fuel Standard • Discussions taking place in House and Senate regarding new goals, above 5 billion gallons.

  14. State Policy Drivers • Climate Action Plans: • 28 States [AL, CA, CO, CT, DE, HI, IA, IL, KY, MA, MD, ME, MN, MO, MT, NC, NH, NJ, NM, NY, OR, PA, RI, TN, UT, VT, WA, WI] • Regional Climate Initiatives: • Regional Greenhouse Gas Initiative (RGGI) • 9 NE and Mid-Atlantic States [CT, DE, MA, ME, NH, NJ, NY, RI, VT] • West Coast Governor’s Initiative (WGA) • 3 States [CA,OR,WA] • Western Governor’s Clean Energy Directive • 18 Western States [AK, AZ, CA, CO, HI, ID, KS, MT, NE, ND, NM, NV, OR, SD, TX, UT, WA, WY] • 150+ Mayors calling for action on climate change. Source: Pew Climate Issue Brief. Learning from State Action on Climate Change. December 2004

  15. State Policy Drivers (cont.) • Renewable Portfolio Standards • 19 States [AZ, CA, CO, CT, DC, HI, IA, MA, MD, ME, MN, NJ, NM, NV, NY, PA, RI, TX, WI] • Public Benefit Funds • 15 States [CA, CT, DE, IL, ME, MA, MN, MT, NJ, NY, OH, OR, PA, RI, WI] • Other examples: • MN Biofuels Mandate • CARB ruling on CO2 transport emission reductions (Pavley Bill)

  16. Pending State Biofuel Legislation: Pacific Northwest(not inclusive) • Washington: • HB 1645 – Provides incentives for use of clean-burning alternative fuels and equipment used in student transportation programs • Montana: • HB 464 – Expand production and use of ethanol • HB 489 – Enhance ethanol education • SB 293 – Revise laws related to ethanol • SB 144 – Require ethanol blended gasoline by 2007 (awaiting action in the House) • SB 256 – Establish uniform net metering standards

  17. GEC Role: • Work for expanded ethanol production across the country • Help get out environmental, economic, and energy security facts about ethanol. • Have GEC Governors from across the country speak out about successes and benefits. • Advocate hybrids, so biofuels can play a larger role. • Make the connection: Ethanol provides environmental, health, and energy benefits for Americans- it is not just a “farm state” issue

  18. For more information Contact: Carol Werner (202) 662-1881 cwerner@eesi.org Alexandra Morel (202) 662-1885 amorel@eesi.org

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