ANOTHER GOOD YEAR FOR ETHANOL

If it weren't for ethanol, gas prices might be even higher. In 2007 America used 6.5 billion gallons of ethanol, displacing 228 million barrels of oil for a savings of $16.5 billion dollars. Nebraska ethanol producers were responsible for 1.3 billion gallons of the total.

Those statistics are from a new report called "Changing the Climate" by the Renewable Fuels Association that looks at historical events of 2007 including passage of the Energy Independence and Security Act, development of new technologies, and unprecedented growth in the ethanol industry which included Nebraska becoming the second largest ethanol producing state in the nation.

Besides saving money, those 6.5 billion gallons of ethanol we used last year reduced green house gases that contribute to global climate change by 10 million tons, which is the equivalent of removing 1.5 million cars from America’s roadways.

The energy bill improves vehicle efficiency while increasing production of renewable fuels. By 2022, 36 billion gallons of renewable fuels must be used annually. That's enough to displace 11.3 billion barrels of crude oil and reduce the outflow of dollars to foreign oil producers by $817 billion between 2008 and 2022. That will add $1.7 trillion to the Gross Domestic Product, 1.1 million new jobs, and generate $209 billion in new federal tax receipts. That is economic stimulus at its finest.

The report says that in 2007 the industry grew from 110 bio refineries in 19 states to 139 in 21 states. Twenty of those plants are in Nebraska, and more are on the way. That's quite a leap forward from the day I became governor when Nebraska had only one plant.

When 2008 expansion is complete, the U.S. ethanol industry will supply more than 13 billion gallons of ethanol, representing nearly 10 percent of the nation’s gasoline demand.

The report also addresses three controversial issues.

ENERGY TO PRODUCE ENERGY

America's ethanol producers are using new technologies like manure gasification and solid waste boilers that will reduce the consumption of natural gas and other fossil fuels to produce bio fuels.

FOOD COSTS

The price of oil has a far greater impact on food prices than corn because oil is integral to every phase of food production, fertilizer, diesel, processing and packaging. The report says that a standard box of corn flakes has approximately 10 ounces of corn, or about 1/90th of a bushel. That’s just over a nickel’s worth of corn.

WATER USE

On average, the production of one gallon of ethanol requires three gallons of water and most of it is recycled by the ethanol plant. New technologies will help lower water consumption by about 25%. The U.S. ethanol industry requires a total of about 44 million gallons of fresh water per day which is less than three-tenths of 1 percent of total U.S. industrial daily fresh water usage. In the future corn will continue to play an important role in the production of bio fuels but we will eventually use other crops, wastes, and cellulosic materials that require less water.

Speaking as Co-Chair of the Ethanol Across America Campaign I want to thank the Renewable Fuels Association for this report that shows a new energy era for America. You may read the complete report on line at www.ethanolRFA.org/industry/outlook.

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	Column	March 3, 2008
ANOTHER GOOD YEAR FOR ETHANOL If it weren't for ethanol, gas prices might be even higher. In 2007 America used 6.5 billion gallons of ethanol, displacing 228 million barrels of oil for a savings of $16.5 billion dollars. Nebraska ethanol producers were responsible for 1.3 billion gallons of the total. Those statistics are from a new report called "Changing the Climate" by the Renewable Fuels Association that looks at historical events of 2007 including passage of the Energy Independence and Security Act, development of new technologies, and unprecedented growth in the ethanol industry which included Nebraska becoming the second largest ethanol producing state in the nation. Besides saving money, those 6.5 billion gallons of ethanol we used last year reduced green house gases that contribute to global climate change by 10 million tons, which is the equivalent of removing 1.5 million cars from America’s roadways. The energy bill improves vehicle efficiency while increasing production of renewable fuels. By 2022, 36 billion gallons of renewable fuels must be used annually. That's enough to displace 11.3 billion barrels of crude oil and reduce the outflow of dollars to foreign oil producers by $817 billion between 2008 and 2022. That will add $1.7 trillion to the Gross Domestic Product, 1.1 million new jobs, and generate $209 billion in new federal tax receipts. That is economic stimulus at its finest. The report says that in 2007 the industry grew from 110 bio refineries in 19 states to 139 in 21 states. Twenty of those plants are in Nebraska, and more are on the way. That's quite a leap forward from the day I became governor when Nebraska had only one plant. When 2008 expansion is complete, the U.S. ethanol industry will supply more than 13 billion gallons of ethanol, representing nearly 10 percent of the nation’s gasoline demand. The report also addresses three controversial issues. ENERGY TO PRODUCE ENERGY America's ethanol producers are using new technologies like manure gasification and solid waste boilers that will reduce the consumption of natural gas and other fossil fuels to produce bio fuels. FOOD COSTS The price of oil has a far greater impact on food prices than corn because oil is integral to every phase of food production, fertilizer, diesel, processing and packaging. The report says that a standard box of corn flakes has approximately 10 ounces of corn, or about 1/90th of a bushel. That’s just over a nickel’s worth of corn. WATER USE On average, the production of one gallon of ethanol requires three gallons of water and most of it is recycled by the ethanol plant. New technologies will help lower water consumption by about 25%. The U.S. ethanol industry requires a total of about 44 million gallons of fresh water per day which is less than three-tenths of 1 percent of total U.S. industrial daily fresh water usage. In the future corn will continue to play an important role in the production of bio fuels but we will eventually use other crops, wastes, and cellulosic materials that require less water. Speaking as Co-Chair of the Ethanol Across America Campaign I want to thank the Renewable Fuels Association for this report that shows a new energy era for America. You may read the complete report on line at www.ethanolRFA.org/industry/outlook. ###