Volume 1, Number 2 State of Georgia August 2006 ETHANOL: “Fuel for Georgia’s future?” By: Angie Fiese, Sr. Policy Analyst At A Glance:

ccording to the American Automobile Association’s Fuel Gauge Voter ID Report on July 20, 2006, gasoline prices in Georgia reached an By: Taryn Murphy, Sr. Policy Analyst average high in Atlanta of $2.990 and an average low of $2.850 Jeff Walker, Policy Analyst

in Augusta. This represented an average increase of 16.1 cents During the 2006 Legislative Session, the fromA June 20, 2006. At one point in July, crude oil prices reached $78.40 Georgia General Assembly passed Sen- per barrel. By 2035, world oil demand is estimated to be 140 million bar- ate Bill 84 which provides for the avail- rels a day. Current world oil demand is estimated at 86 million barrels a ability of free Georgia Voter Identifica- day. On August 1st, Senator Tolleson mediated a legislative roundtable tion Cards and requires that the State with Senators Bulloch, Carter, Harp, Hooks, and Tarver at the BioEnergy Election Board outfit all county boards Conference in Tifton. Their discussion focused on the potential for devel- of registrars with the necessary equip- oping alternative fuel, such as ethanol, in Georgia to reduce the nation’s ment to produce the Georgia Voter dependence on foreign oil. Senator Tolleson believes that “the State of Identification Cards. This legislation Georgia will lead the nation in the production of alternative fuels,” but also provides that the voter must pre- recognizes that the state faces significant challenges relating to the trans- sent one of the following forms of identi- portation, fuel quality, and infrastructure of ethanol. fication: (1) a Georgia Driver’s License; (2) a Georgia Voter Identification Card Ethanol or an identification card issued by a de- Ethanol, also known as ethyl alcohol or grain alcohol, can be used as an partment branch, agency, or entity of alternative fuel or as an octane-boosting, pollution-reducing additive to the state of Georgia; (3) a United States gasoline (E85 is representative of 85 percent ethanol and 15 percent gaso- Passport; (4) a valid United States Gov- line). The majority of ethanol is produced from corn, but it can also be ernment photograph identification card; produced from many other crops including wheat, barley, milo/sorghum, (5) a United States military identifica- and sweet potatoes. New technology will allow ethanol to be made from tion; or (6) a tribal identification card. “cellulosic” feedstocks, including corn stalks, grain straw, paper pulp, mu- The U.S. Department of Justice ap- nicipal solid waste, switchgrass, and other sources. proved this law in June.

The United States ethanol industry produced more than 3.4 billion gallons Recently, Georgia’s voter photo identifi- of ethanol in 2004, representing an increase from 2.8 billion gallons in cation law suffered two setbacks, in the 2003. According to the Renewable Fuels Association, as of May 31, 2006, form of a 2005 federal court case, Com- there are currently 100 operating ethanol plants in the United States capa- mon Cause/Georgia v. Billups, and a 2006 ble of producing more than 4.7 billion gallons of ethanol fuel each year. state court case, Lake v. Perdue. On Sep- An additional 33 plants are under construction, while eight are being ex- tember 19, 2005, several non-profit or- panded, to yield an additional two billion gallons in annual ethanol produc- ganizations and two voters filed suit tion. against the Georgia Boards of Election and Secretary of State Cathy Cox, alleg- President Bush’s Advanced Energy Initiative provides for a 22 percent ing that the voter ID law violates the increase in clean-energy research at the Department of Energy. The Presi- Georgia Constitution, the 14th Amend- dent seeks accelerated research in technology that produces cellulosic ment of the United States Constitution, (Continued on Page 2) (Continued on Page 3)

Page One At Issue Senate Research Office Ethanol (Continued from Page 1) ethanol with the goal of making use of percent methanol, the league's former The Georgia Center for Innovation such ethanol practical and competitive race fuel. Beginning with the '07 sea- recently awarded a $100,000 research within six years. The President’s 2007 son, Indy will be powered by 100 per- grant to the Georgia Institute of Budget will include $150 million, an cent ethanol. Technology on behalf of C2Biofuels increase of $59 million from the 2006 for further research of cellulosic etha- Budget, to help develop bio-based nol production. Chevron has formed a transportation fuels from agricultural Ethanol in Georgia partnership with Georgia Tech’s Stra- waste products, such as wood chips, By Executive Order, Governor Perdue tegic Energy Institute and will con- stalks, or switchgrass. Research sci- has charged the Georgia Environ- tribute up to $12 million over five entists confirm that accelerating re- mental Facilities Authority (GEFA) years for research into and the devel- search into “cellulosic ethanol” can with the responsibility of assembling opment of emerging energy technolo- make this type of fuel cost-competitive stakeholders to develop a long-term, gies. by 2012, thus offering the potential to comprehensive statewide energy strat- displace up to 30 percent of the na- egy and with developing an imple- Xethanol plans to build a 50 million tion’s current fuel use. The President mentation strategy that ensures that gallon per year cellulosic ethanol plant also signed the Energy Policy Act of Georgia fully leverages federal renew- in Augusta, which would start produc- 2005, which strengthens the nation’s able energy incen- ing ethanol by mid- electrical infrastructure, reduces the tives. The Georgia year 2007. Xethanol nation’s dependence on foreign Department of is purchasing the sources of energy, increases conserva- Natural Re- plant site from tion, and expands the use of renewable sources, Environ- Pfizer, Inc., which energy. mental Protection could create up to Division was 100 jobs. First All vehicles in the United States are charged with United Ethanol, LLC ethanol capable and can use a blend of streamlining the is planning to start up to 10 percent ethanol. Flexible-fuel permitting and construction this Oc- vehicles (FFV) can run on blends of up regulatory proc- tober on an ethanol to 85 percent ethanol (E85) or esses to ensure all plant in Camilla, straight, unleaded gasoline. Daimler- proposed renew- which would produce Chrysler, Ford Motor Company, and able energy facili- ethanol from corn. General Motors Corporation have ties receive a 90- C2 Biofuels is explor- announced plans to double the annual day permit review. ing a $150 to $200 production of FFVs to two million by The Executive million plant in the year 2010. There are currently Order also re- South Georgia that about five million FFVs on the road quires all state- would produce etha- today. Other vehicles may be techni- owned fueling nol from wood pulp. cally converted to E85; however, there facilities to maxi- Col. Rick Riera, Fort are no conversions or after-market mize the purchase While the new etha- parts that have been certified by the of gasoline Benning garrison nol industry is grow- Environmental Protection Agency as blended with etha- commander in Columbus, ing, other issues meeting clean exhaust emission stan- nol and diesel fuel fills a government vehicle must be resolved be- dards. Ford has also formed a partner- blended with bio- with E-85 ethanol. fore its potential in ship with VeraSun, a renewable en- diesel for use in Georgia can be real- ergy company, to promote the growth state vehicles when available and eco- ized. These issues relate to the trans- of E85 infrastructure and to increase nomically practicable. A separate Ex- portation of ethanol, the quality of the consumer awareness. ecutive Order creates a State Facilities ethanol fuel, and the lack of infrastruc- ture in the state. Currently, the The Indy Racing League announced Energy Council responsible for rec- method for transporting oil or fuel is last year that, beginning with the ommending energy policies, purchas- through the use of metal pipelines, 2006 IndyCar Series season, ethanol ing strategies, and optimizing strate- tanker trucks, or railway tankers. would be the League's fuel of choice. gies for state facilities which will re- This year's season will be powered by duce the state’s energy consumption. (Continued on Page 4) a blend of 10 percent ethanol and 90

Page Two At Issue Senate Research Office At A Glance (Continued from Page 1) the Civil Rights Act of 1964, the Vot- However, the court decided in favor of will have difficulty traveling to the ing Rights Act of 1965, and consti- the plaintiffs on the undue burden is- Georgia Department of Driver Ser- tuted both an undue burden on the sue. According to the judge, the law vices during its limited business hours fundamental right to vote and an un- cannot survive under either a strict and waiting in long lines. The single constitutional poll tax. Common scrutiny standard or a more flexible mobile ID unit in Georgia is not suffi- Cause/Georgia v. Billups was heard by standard because there are fatal flaws cient to serve all 159 counties. Also, the federal court for the Northern Dis- in the statute that create an undue the opportunity to avoid paying a fee trict of Georgia. burden on some voters. Under strict for the ID by signing a poverty affida- scrutiny, although preventing voter vit is not sufficient to remove the The state’s position, as argued by the fraud is a legitimate state interest, this monetary burden, because many vot- attorney general, was that the photo statute was not narrowly drawn to ers may not consider themselves indi- ID requirement is not an undue bur- attain that goal. The court pointed gent; therefore, they may not feel den because it does not prevent any- out that the law focuses exclusively on comfortable signing a legally binding one from voting; the law merely regu- in-person voting where there is very document to that effect. lates the manner of voting. Requiring little evidence of fraud, a photo ID for in-person voting is a while ignoring absen- reasonable means of achieving a legiti- tee voter fraud where mate state interest, that of preventing there is significant evi- in-person voter fraud. Also, the state dence of fraud. If the argued that it is not required to ad- purpose of the law is to dress all voter fraud problems at once, prevent voter fraud, and preventing in-person voter fraud then it is not narrowly should be considered a legitimate state tailored to do so be- interest regardless of how the state cause the law ignores treats absentee voting. absentee voting.

Federal Court’s Decision On October 18, 2005, the court granted plaintiffs a preliminary in- On the poll tax issue, the state claimed junction, prohibiting the state from that the law allows people to avoid enforcing the disputed provisions of Requiring a photo ID paying any fee by filing a poverty affi- the law during the November 2005 davit, and the state has a “no questions county and municipal elections. The for in-person voting is a asked” policy. The court disagreed, court found that the plaintiffs had because many voters may be unaware shown a substantial likelihood of suc- reasonable means of of this policy. Also, the judge held cess on the merits of the undue burden that the state did not adequately pub- claim and the poll tax claim, the in- achieving a legitimate licize the absentee ballot loophole to junction was necessary to prevent ir- the photo ID requirement. Therefore, reparable injury, the injury outweighs state interest, that of the court held that the photo ID re- the harm the injunction would inflict quirement is a poll tax, which violates th on the state, and the injunction would preventing in-person the 24 Amendment and the Equal serve the public interest. The decision Protection Clause. The court further was based only on those two issues, voter fraud. rejected the state’s claim that the because federal courts are barred from availability of provisional ballots cures - Attorney General Thurbert Baker deciding on state constitutional the law’s burden on voting, because it claims, and the plaintiffs had not pre- is unlikely that a voter who lacks a sented full arguments on the Civil Under the flexible standard, the state’s photo ID at the time of voting will be Rights Act and Voting Rights Act argument also fails because the law’s able to acquire a photo ID in a 48- claims. burden on voting outweighs the inter- hour time period. ests served by the statute. The bur- (Continued on Page 5) den is significant because many voters

Page Three At Issue Senate Research Office At A Glance (Continued from Page 3) 2006 Legislative Response a preliminary injunction against en- statute affects the methods and proce- The Georgia General Assembly forcing the law during the primary dures of voting, rather than voter reg- amended the law in January 2006 to election and any resulting run-off elec- istration; therefore, Article II, Section allow voters to obtain free ID cards by tions. The Georgia Supreme Court 1, Paragraph 1 is the applicable consti- swearing that he or she desires the denied an emergency stay of injunc- tutional provision. The superior court card in order to vote, and that he or tion that was filed by the state. granted the preliminary injunction she does not have any other form of with little explanation, stating that acceptable identification. The law was Article II, Section I, Paragraph 2 of the law violates the Georgia Constitu- also amended to require that every the Georgia Constitution states that tion by placing a restrictive condition county in Georgia establish at least every person who is a U.S. citizen, a on the right to vote. one location where voters can apply Georgia resident, and at least 18 years old is entitled to vote in any election. for and obtain the ID. Current Situation The plaintiffs argued that this para- As of August 2006, the federal court Soon after these changes were made, graph provides an exclusive list of injunction remains the only impedi- the plaintiffs filed an amended com- prerequisites to voting, and it does not ment to the implementation of the plaint with the same federal district allow the legislature to create addi- Voter ID law, as amended during the court to reflect the changes made by tional requirements. Therefore, the 2006 Legislative Session. It is impor- the General Assembly, requesting a photo ID law is unconstitutional be- tant to note that the district court as- new injunction to prevent enforce- cause it might prevent a person from serted that if the state takes sufficient ment of the Act during the 2006 elec- voting who meets all constitutional steps to inform voters of the 2006 tions. The federal district court requirements. law’s photo ID requirements, the stat- granted a preliminary injunction on ute may survive the undue burden is- July 14, 2006, a few days before the sue in time for the November 2006 July 18th primary election. The court general election. In other words, the found that, based on the changes to Article II, Section I, court held that the burden on a voter the law in 2006, plaintiffs were not to go to the Department of Driver likely to succeed on the poll tax issue. Paragraph 2 of the Services in order to obtain a free voter However, the court issued an injunc- ID is minimal, and the state may have tion based on the likelihood of success Georgia Constitution time to lift the burden with sufficient on the undue burden issue. advertising of the law and its require- states that every person ments before the general election. The court granted the preliminary The state court decision in Lake v. injunction because the timing of the who is a U.S. citizen, a Perdue was in effect for the primary changes to the law did not leave election and run-off election only; adequate time prior to the primary Georgia resident, and at therefore, this injunction will not ap- election for voters to conform to its ply in November 2006. SRO requirements. According to the court, least 18 years old is although the 2006 law itself may not impose an undue burden, the fact that entitled to vote in any the state did not begin implementing the law until a mere three weeks be- election. fore the primary elections constituted the burden. The state argued that the law does not create additional prerequisites to vot- State Court Case ing, but only regulates the voting process, which is permissible so long Lake v. Perdue, filed by two voters on as the law regulates a time, place, or July 3, 2006, is based solely on the manner of voting. Article II, Section claim that the 2006 amended law vio- 1, Paragraph 1 of the Georgia Consti- lated Article II of the Georgia Consti- tution provides that the legislature tution. On July 7, 2006, a Fulton may regulate the method of voting. County Superior Court judge granted According to the state, the photo ID

Page Five At Issue Senate Research Office Ethanol (continued from Page 2) Ethanol differs from traditional fuel E-85 Infrastructure Grants and Incentives because it absorbs water and, in high concentrations, is corrosive to metal the improvement or $30,000, which- pipelines. Massive quantities of etha- Federal ever is less. The Iowa House File nol will need to be transported by Section 1342 of the Federal Energy 2759 (appropriations bill) appropriates tanker trucks or railroads, which is Policy Act of 2005 provides a tax $2 million per year from the Iowa Val- more expensive and complicated. credit equal to 30 percent of the cost ues Fund. for alternative refueling property, up Since ethanol’s properties are different to $30,000 for business property. It is Ohio than traditional gasoline, there are scheduled to expire December 31, The Ohio Biofuels Retail Incentive certain quality control/quality assur- 2009. The Clean Cities Coalition pro- Program (OBRIP) provides funding ance tests and standards that must be gram is soliciting proposals for grant to owners of retail fuel stations to as- achieved before E85 can be sold. Fur- funding for refueling infrastructure sist with the installation and promo- thermore, storage and dispensing projects that include new dispensing tion of E85 and/or B20. The OBRIP equipment at retail stations must be facilities, or additional equipment or will provide up to $135,000 through E85 compatible. Soft metals such as upgrades, and improvements to exist- June 2006, with additional funding zinc, brass, or aluminum, which are ing refueling sites for alternative fuel anticipated in July 2006. Generally, commonly found in conventional fuel vehicles. The U.S. Department of En- applicants for E85 incentive awards storage and dispensing systems, are ergy’s State Energy Program grants may receive up to $5,000. Applicants not compatible with ethanol, espe- are awarded through the Clean Cities must provide matching support, cash cially at the higher concentrations program category and fund alterna- and/or in-kind, equal to the amount of found in E85 motor fuel. Some non- tive fuel infrastructure, such as E85 incentive funds provided (the incen- metallic materials may also degrade refueling infrastructure. tive may not exceed 50 percent of the when they come in contact with total costs, including cash and in-kind ethanol. Illinois support, of the project). Applicants

Through the Opportunity Returns may count support available from Currently, there are no listed public Initiative and a grant from the Illinois third parties as part, or all, of their E85 refueling locations in the state. Clean Energy Community Founda- match requirement. Refueling locations are only located at tion, $500,000 in funding is now avail- the Marine Corps Logistic Base in able for the Illinois E85 Clean Energy Albany, Ft. Benning in Columbus, and Infrastructure Development Program, Tennessee PC Energy in Atlanta. Many retail to establish new E85 facilities at retail The Tennessee Department of Trans- gasoline stations are eager to sell E85, gasoline outlets in Illinois. The pro- portation (Department) is authorized but do not have the financial capability gram, administered by the Illinois De- to undertake public-private to install E85 infrastructure. Various partment of Commerce and Economic partnerships with transportation fuel federal and state incentives and/or Opportunity, will provide up to 50 providers to install a network of refu- grant programs have been created and percent of the total cost for convert- eling facilities, including storage tanks implemented to encourage the devel- ing an existing facility (maximum and fuel pumps, dedicated to dispens- opment of E85 infrastructure. SRO grant of $2,000 per site) to E85 opera- ing biofuels including E85 and bio- tion, or for the construction of a new diesel. The Department is also au- thorized to establish a grant program refueling facility (maximum grant of At Issue up to $40,000 per facility). to provide financial assistance to help pay the capital costs of purchasing, At Issue is published monthly during preparing and installing fuel storage the interim. For more information on Iowa tanks and fuel pumps for biofuels at this publication contact the Senate Iowa’s Renewable Fuels Infrastruc- private sector fuel stations. SRO ture Program is a cost-incentive pro- Research Office in Suite 204 of the gram which will provide financial as- Coverdell Legislative Office Build- sistance to persons installing E85 and biodiesel dispensing equipment. The ing or by calling 404.656.0015. financial incentive may not exceed 50 - - Jill Fike, Director percent of the actual cost of making

Page Four At Issue Senate Research Office In Brief . . . High School Athletics Overview Committee NCSL Legislators Back to School Program The first meeting of the High School Athletics Overview The America's Legislators Back to School Program Committee convened on August 4th in the Atlanta with (BTSP) is your opportunity to visit elementary, middle, Co-Chairs Senator Judson Hill and Representative Chuck and high school classrooms in your district to meet with Martin. The Committee was created as a means of evalu- young constituents and share ideas, listen to concerns, ating the ability of high school athletic associations to answer questions, and provide students with a greater un- fairly and equitably establish and implement standards and derstanding of the legislative process. to promote academic achievement and good sportsman- ship. The BTSP is sponsored by NCSL and is designed to teach young people—the nation’s future voters and leaders— The Committee heard testimony from Dr. Ralph Swear- what it is like to be a state legislator: the processes; the ingin, Executive Director of the Georgia High School As- pressures; and the debate, negotiation and compromise sociation (GHSA). Dr. Swearingin provided the Commit- that are the very fabric of American democracy. School tee with an overview of GHSA and its current priorities principals, teachers, and students have given state legisla- for regulating high school athletics in Georgia. The next tors an “A” for bringing civics to life for young people dur- meeting will be held in September to further discuss the ing the event. performance of high school athletic associations. SRO The program kicks off the week of September 18th through the 22nd and continues throughout the school year. Please call Asenith T. Dixon at (404) 656-0021 if DeKalb County Government Senate Study Committee you would like to participate. SRO The DeKalb County Government Senate Study Commit- tee is reviewing various organizational forms of govern- ment which would facilitate a more effective and efficient county government and democratic representation. The Georgia Healthcare Transformation Study Committee Committee’s review will include city incorporation, analy- The Georgia Healthcare Transformation Study Commit- sis of DeKalb County Government, and the expansion of tee will hold its first meeting on September 7th in Atlanta. existing cities. The Committee’s first two meetings fea- The Committee will discuss a broad range of topics con- tured speakers from various groups including: the Asso- cerning the overall healthcare system in Georgia. SRO ciation County Commissioners of Georgia; the Carl Vin- son Institute of Government; the Georgia Municipal Asso- ciation; and various civic groups from different areas of the county. The Committee’s third meeting will likely be Senate Septage Disposal Study Committee held later in September. SRO The Senate Septage Disposal Study Committee held its second meeting on August 29th in Albany. The Commit- tee heard presentations from the Department of Natural Resources, the Douglasville-Douglas County Water & Joint State Trauma Services Study Committee Sewer Authority, and the Southwest Georgia Health Dis- The Joint Comprehensive State Trauma Services Study trict. SRO Committee held its first meeting in Atlanta on August 14th. The meeting was followed by a tour of Grady Hospi- tal and the Atlanta Medical Center. Various members of the press joined the Committee for its tour of Grady and Joint Water Desalination Study Committee 11alive news ran a very good piece on the day’s events re- The Joint Comprehensive Water Desalination Study Com- flecting the importance of the Committee’s work. The mittee held its first set of meetings August 23-24th in St. Committee will hold its next meeting on September 11th in Simons Island. The Committee heard testimony about the Macon. SRO basics of desalination, desalination efforts in Texas, Flor- ida, and California, as well as the permitting and legal bar- riers to undertaking a desalination effort in Georgia. SRO

Page Six At Issue Senate Research Office