Ethanol in New York State A Fuel Solution

Ethanol in New York State: A Fuel Solution? Tompkins County Environmental Management Council September 13, 2006 Katy Nicholson Stephen Nicholson September 2006 Tompkins County Environmental Management Council

The Carbon Cycle September 2006 Tompkins County Environmental Management Council 2

According to the Renewable Fuels Association

Ethanol Production drives economic development adds value to agriculture moves our nation toward energy independence cleans America's air cost-effective choice at the pump September 2006 Tompkins County Environmental Management Council 4

Recent Polls 78 % Americans support increasing the use of ethanol. 53 percent believe we should diversify our energy supply by utilizing alternative energy sources like ethanol. 90 percent of Americans would prefer a flexible fuel vehicle (FFV). (Public Opinion Strategies) September 2006 Tompkins County Environmental Management Council 5

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Production of Ethanol 2005: 4 billion gallons 2004: 3. 4 billion gallons 2003: 2. 81 billion gallons Ethanol Refineries 101 ethanol plants (4. 7 billion gallons of production capacity) 32 under construction September 2006 Tompkins County Environmental Management Council 7

indy racing burns cleaner. burns rubber. It’s big news: Ethanol powers the legendary Indy. Car® Series! Like the cars themselves, the transition is quick: in the 2006 season, race cars are fueled by 10% ethanol-enriched fuel. Then in 2007, it’s 100 percent ethanol for 100 percent of the cars! Tompkins County Environmental 8 Management Council

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Corn Belt

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How Ethanol Affects Corn Prices Corn prices near ethanol plants increase between five and eight cents per bushel. 1. 4 billion bushels went into ethanol production in 2004—and that affects overall corn supply and helps shore up corn prices nationwide. U. S. Department of Agriculture says ethanol production adds 30 cents to the value of a bushel of corn. The Renewable Fuels Association notes that ethanol production adds $4. 5 billion to U. S. farm income annually. September 2006 Tompkins County Environmental Management Council 16

NY Ethanol Plants In-state facilities represent “another significant step in our goal of developing a strong biofuel industry in the state, ” said Gov. George Pataki, “which will not only provide an economic boost to our farming community, but keep our energy dollars here in New York. ” Pataki, the first Northeast governor to join the Governors' Ethanol Coalition, promised $6 million and other incentives for the $87 million Shelby facility. September 2006 Tompkins County Environmental Management Council 17

New York Corn Production 1 million acres of corn planted. 50 million bushels harvested. Feed for dairy cows. New York is third in the country in milk production. 3 ethanol plants being built. Will use 80 million bushels of corn. Produce 200 million gallons ethanol In NY one acre corn (harvested) = 300 gallons ethanol September 2006 Tompkins County Environmental Management Council 18

New York Ethanol Math 50 million bushels minus 80 million bushels = hungry cows? 3 Ethanol plants will need to import 30 million bushels from other states. September 2006 Tompkins County Environmental Management Council 19

History of the Ethanol Industry 1990 Amendment to Clean Air Act Requires 2% oxygenates in non-attainment areas Ethanol vs MTBE lobby Pipeline problems vs water quality MTBE bans in California, New York, and Connecticut have created a de facto ethanol mandate. IRONY: New cars need no oxygenates September 2006 Tompkins County Environmental Management Council 20

GM, FFV and CAFE standards Dan Becker: Sierra Club's Global Warming Program, condemns GM's campaign as "unmitigated, total fraud. " CAFE (Corporate Average Fuel) Boost from FFV =1. 2 mpg. Meet CAFE standard of 26. 3 instead of 27. 5 2 new SUV’s for each FFV (Flexible Fuel Vehicle) FFV cost $100 extra to manufacture $5000 profit on each SUV. E 85 loophole saved GM more than $200 million in fines September 2006 Tompkins County Environmental Management Council 21

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Pushing Ethanol We use corn for everything $4. 5 billion (in 2004) for corn growers $0. 1786 / gallon of ethanol produced $. 51/gallon for every gallon produced Subsidy amounts to almost a trillion dollars in past 15 yrs Archer Daniels Midlands (ADM) owns 7 ethanol plants (1, 070, 000 gallons per year) ADM’s pay check from US = $545, 700, 000/year September 2006 Tompkins County Environmental Management Council 23

How much for a gallon of ethanol? 1 acre of US corn = 328 gallons of ethanol average 1 acre of US corn = 140 gallons of fossil fuels in planting, growing and harvesting $7. 24 for gallon equivalent September 2006 24

How much corn would we need? Ethanol production per acre = 382 gallons 2005 = 9, 760, 000 acres used for ethanol For energy independence = 5, 411, 832 square miles Area of the US+Alaska = 3, 537, 438 square miles Fueling one automobile for one year = 11 acres A year's supply of food for seven people = 11 acres September 2006 25

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Environmental Impacts of Ethanol 27

Agriculture Inputs Growing corn n Fertilizers n Pesticides n Water Usage and Pollution n Plowing and Harvesting n Genetically Modified Pollution n Growing corn is by far the most polluting agricultural process Fossil Fuel Inputs n Growing corn is energy intensive 28

Ethanol Processing Plants Pollutants Methanol Carbon monoxide Volatile organic compounds Cancer causing ADM processing plant in Clinton, IA produced 20, 000 tons of pollutants in 2004 EPA regulations September 2006 Tompkins County Environmental Management Council 29

Powering Ethanol Plants Used to be natural gas, but economic incentive is to use highest energy, least costly fuel (waste coal) Goldfield, IA plant uses 300 tons of coal a day New and old ethanol plants built to run on coal (economics) Pimentel’s test: If ethanol offers such a magnificent energy gain, then why don’t ethanol plants run on ethanol instead of coal and natural gas? September 2006 Tompkins County Environmental Management Council 30

Using Ethanol in Cars p p American Lung Association Using ethanol added to gas adds more air pollution Overall ethanol reduces greenhouse gas emissions by 13% over gasoline Unless plant is powered by coal September 2006 Tompkins County Environmental Management Council 31

Ethanol Plants Impact Local Community p p Using lots of resources Lots of waste Pollutants in water and air Ethanol plants tend to be heavily supported by local governments and large scale farmers September 2006 Tompkins County Environmental Management Council 32

Ethanol Benefits Agribusiness p p p Not necessarily the local corn growers Producers want to buy cheapest corn – ethanol only raises price 2 cents Mostly owned by large corporations, that have the money and investors in projects Not feasible at small scale Since the 2000 election cycle, ADM has given more than $3 million in political contributions Every dollar in profits earned by ADM costs taxpayers $30. September 2006 Tompkins County Environmental Management Council 33

Cellulosic Ethanol Nathanaelethanol Cellulosic Greene is made from (NRDC) “Everyone plant tissue assumes we'llcorn evolve the Switchgrass, stalk industry from trees, its current waste, willow technology thepaper wood, pulp to from advanced mills, trashtechnologies. ” Largely untested, not 400 gallons per acre developed, can’t (switchgrass) - 5 use tons of ethanol (current) as dry matter per acre bridge to future Up to 15 stalks tons of dry All corn and biomass per acre, with switchgrass? enough to make 1, 150 Corn ethanol $1. 05 gallons of ethanol $2. 30 each Cellulosic year Switchgrass 34

Cellulosic Ethanol First commercial-scale cellulose ethanol plant that will come online in the U. S. p Spring Hope, NC p 35 million gallon per year p Feedstock of local hardwood chips and wood waste p September 2006 Tompkins County Environmental Management Council 35

Is Ethanol a Sustainable Fuel? September 2006 Tompkins County Environmental Management Council 36

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Local Solutions p p Establish more pedestrian and bike-friendly communities Invest in public transportation Improve vehicle efficiency and reduce vehicle usage Commit to consuming goods produced locally and food grown locally September 2006 Tompkins County Environmental Management Council 38

Useful Websites p Green or grey? Sustainability issues of biofuel production http: //www. earthscan. co. uk/news/article/mps/uan/638/v/3/sp p Drunk on Ethanol by Ted Williams http: //magazine. audubon. org/incite 0408. html p How green is ethanol as a renewable fuel? http: //pubs. acs. org/subscribe/journals/esthagw/2006/feb/policy/kc_ethanol. html p Carbon cloud over a green fuel http: //www. csmonitor. com/2006/0323/p 01 s 01 -sten. html p Energy Justice http: //www. energyjustice. net p Earth Track http: //www. earthtrack. net September 2006 Tompkins County Environmental Management Council 39