Transcript Revitalizing the Farm Economy Through Renewable Energy

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) 6281825
www.eesi.org
Environmental and Energy
Study Institute (EESI)
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www.eesi.org
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.
Environmental Drivers for
Shifting Current Fuel Use
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Air pollution from
emissions
– SOx, NOx, CO, VOC’s
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Water Pollution
– MTBE, Oil Spills, run-off
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Climate Change
– 30 percent of our CO2
emissions from
Transportation
– 2 percent of global CO2
emissions from
California.
Emissions from Petroleum
based fuels
CO-70-90% of total emissions
 NOx- 45-50% of total emission
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– 178,000 mtons*,
52.7 million mton CO2 equiv. (2003)
 VOC’s CO2-
40-50% of emissions
30% of total emissions
– 1.87 billion mtons*(2003)
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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
Oil Spills
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Total Oil Spills since
2000:
– 83 spills of 7-700 tons
– 19 spills of >700 tons
– total = 146,000 tons
Source:
ITOPF [International Tanker Owners Pollution Federation]
http://www.itopf.com/index2.html
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1.5 million gallons
spilled into U.S.
oceans in a typical
year. (assuming no large
spills)
Source:
Environmental Protection Agency
The “Real Cost” of Oil
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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.
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Energy Security
Concerns
Growing India and
China Oil Demand
Source:
EIA: http://www.eia.doe.gov/emeu/ebr/ebrnoi.html
Ethanol: Allows
Variety 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 Americansnot just Ag.
Source: Renewable Fuels Association
Benefits of 10% Ethanol-blends
on Air Pollution
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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%
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– Sign. Formaldehyde reductions, offset slight
increase in PAN and acetylaldehyde.
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Reduces toxic emissions by 30%
– Backs out >50% of benzene
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Higher blends yield much greater benefits
Source:
Renewable Fuels Association, http://www.ethanolrfa.org/factfic_envir.html
Additional Environmental
Benefits of Ethanol
Biodegradable- no problem in case of
spill or leak.
 Alternative to traditional waste disposal
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(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
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BUT….Environmental misinformation on
ethanol must be addressed….
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*2004 State of the Air Report, American Lung Association
Reductions in GHG Emissions
due to Ethanol Use
Source: International Energy Administration. Biofuels for Transport, an International Perspective,
May 11, 2004
Federal Policy Drivers
Kyoto 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:
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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:
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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:
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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.
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.
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
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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.
State Policy Drivers
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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]
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Regional Climate Initiatives:
– Regional Greenhouse Gas Initiative (RGGI)
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9 NE and Mid-Atlantic States [CT, DE, MA, ME, NH, NJ, NY,
RI, VT]
– West Coast Governor’s Initiative (WGA)
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3 States [CA,OR,WA]
– Western Governor’s Clean Energy Directive
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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
State Policy Drivers (cont.)
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Renewable Portfolio Standards
– 19 States [AZ, CA, CO, CT, DC, HI, IA, MA,
MD, ME, MN, NJ, NM, NV, NY, PA, RI, TX, WI]
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Public Benefit Funds
– 15 States [CA, CT, DE, IL, ME, MA, MN, MT,
NJ, NY, OH, OR, PA, RI, WI]
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Other examples:
– MN Biofuels Mandate
– CARB ruling on CO2 transport emission
reductions (Pavley Bill)
Pending State Biofuel Legislation:
Pacific Northwest
(not inclusive)
– Washington:
 HB
1645 – Provides incentives for use of cleanburning 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
GEC Role:
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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
For more information
Contact:
Carol Werner
(202) 662-1881
[email protected]
Alexandra Morel
(202) 662-1885
[email protected]