Grand Island Independent, Nebraska

Dec. 9, 2004

Continued growth in renewable fuels, such as ethanol, will be an important part of the energy mix that will boost America's energy independence, according to a private study by a bipartisan panel of energy experts.

And the continued growth of Nebraska's ethanol industry is already helping to make the report's conclusion a reality, said Steve Sorum of the Nebraska Ethanol Board.

According to the panel's findings, future energy security will require billions of dollars in government investment in clean coal technology, a new generation of nuclear power plants and promotion of renewable energy and conservation.

The Associated Press reported that a key finding by the group is the need for greater involvement by the government, including a doubling of money for federal energy research and development.

Among the group's recommendations, the Associated Press reported, will be that the government impose a mandatory permit program aimed at reducing so-called greenhouse pollution believed to cause climate change and significantly strengthen vehicle fuel efficiency standards to reduce oil consumption.

The group, called the National Commission on Energy Policy and financed by private foundations, was organized two years ago to develop a consensus report on where the country should go to achieve greater energy security. Its 16 members include representatives of industry, government, labor and environmental and consumer groups.

"Taken together, the commission's recommendations aim to achieve a gradual but decisive shift in the nation's energy policy, toward one that directly addresses our long-term oil, climate, electricity supply, and technology challenges," said William K. Reilly, former EPA Administrator and Commission co-chairman. "Oil reliance is a fact we will face for some time. So we recommend incentives to spur global oil production, to increase domestic vehicle fuel economy, and to increase investment in alternative fuels."

Reilly said that the group's climate change plan would both limit greenhouse gas emissions and cap the costs of doing so.

"At the same time, it provides incentives for low- and non-carbon sources like natural gas, renewable energy, nuclear energy and advanced coal technologies with carbon capture and sequestration, as well as for increased efficiency of energy end use," he said. "We are proposing programs that can work in the real world."

One of the group's renewable fuels proposals calls for establishing a $1.5 billion program over 10 years to increase domestic production of advanced nonpetroleum transportation fuels from biomass (including waste).

"The commission's renewable energy proposals are aimed at finding ways to reduce costs and bring competitive sources to market," said Reilly. "Any scenario for tackling climate change and developing clean domestic energy resources must involve expanded use of renewable power."

According to Sorum, Nebraska is already making a concerted effort in meeting those energy goals with the development of the state's ethanol industry.

With ethanol a cleaning burning fuel that reduces the threat of climate change, Sorum said Nebraska will see the opening of its sixth E85 pump next Wednesday at Bosselman Energy's Pump & Pantry station in Hastings at 1630 South St. It will the second E85 pump Bosselman's has opened this year. Earlier, Bosselman's installed an E85 pump at its Pump & Pantry station on Highway 281 and Capital Avenue in Grand Island.

They will celebrate the opening of the Hastings E85 pump from 10 a.m. to 5 p.m. Wednesday with E85 fuel being sold for 85 cents a gallon.

E85 contains 85 percent ethanol and is designed for "flexible fuel" vehicles designed to run on the blend. More than 20,000 such vehicles are on the road in Nebraska today, Sorum said.

"Bosselman's is a longtime marketer of ethanol fuels in Nebraska and other Midwestern states," said Fred A. Bosselman, president of Bosselman Energy Inc. "We view the marketing of E85 as an opportunity to expand our slate of fuel products that contain ethanol produced in Nebraska. We believe this is the right thing to do to support Nebraska-based companies and farmers, as well as respond to demand for clean-burning, renewable fuels."

Nebraska ranks third in U.S. corn production with about 1.3 billion bushels produced annually, and produces more than 520 million gallons of ethanol annually at 11 ethanol plants. The state has sold over 500,000 gallons of E85 to date in 2004.

Sorum said the growth of E85 has been helped by the increased cost of gasoline, which has made E85 more competitive at the pump, along with recently enacted federal tax laws that encourage expanded marketing of E85.

"E85 represents a new market that ethanol producers haven't had in the past simply because there wasn't many retail stations," he said.

Sorum said Nebraska's ethanol industry is poised for more growth.

"We have become a very significant player in ethanol production," he said.

While Nebraska has 11 ethanol plants in production, six other potential plants have qualified for the state's ethanol incentive program, Sorum said.

"That's going to put us in the vicinity of 700 million gallons of ethanol," he said. "Gasoline consumption in the state is about 800 million gallons. So we are very close to being energy independent in terms of gasoline if all vehicles were E85 vehicles. It is significant that we will be producing almost as much as we use in this state. If we can do that in Nebraska, then we could be a model for other states as well."

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National Commission on Energy Policy