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 Afrom 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.