Plans to expand ethanol use are good news for farmers
BY MARTHA STODDARD Lincoln Journal Star

Article taken from the Lincoln Journal Star on Thursday July 29, 1999

Gov. Mike Johanns on Wednesday celebrated a few rays of economic sunshine peeking through the clouds gathered over Nebraska farmers.

First on the good news front was the U.S. Environmental Protection Agency's call for curtailing use of methyl tertiary butyl ether -- or MTBE -- ethanol's main competitor.

Second was the good reception a group of Nebraska ethanol experts recently got from California officials deciding how their state should meet clean-air standards without using MTBE. Earlier this year, California Gov. Gray Davis signed an order phasing out the use of the gasoline additive.

Both moves could give a multimillion-dollar boost to Nebraska's economy. The state has six active ethanol plants, which turn about one of every seven bushels of Nebraska-grown corn into the fuel additive.

"I believe ethanol should, and must, replace MTBE," Johanns said. "Ethanol is a proven, environmentally sensitive additive that can reduce gasoline's toxic effects." The EPA report, which came out Tuesday, raised concerns about water contamination by MTBE. The additive has been shown to cause tumors in rats and is suspected to do so in humans.

Ethanol, on the other hand, breaks down rapidly in water and has not been linked to environmental problems, said Todd Sneller, head of the Nebraska Ethanol Board. In Nebraska, ethanol is made with corn and grain sorghum. It also can be made with other plant materials.

Both additives produce cleaner-burning, oxygenated fuel when blended with gasoline. Federal rules require the use of such fuel in 10 of the nation's most polluted cities and several states also require the use of oxygenated fuels.

Sneller was one of eight Nebraskans who headed for California last month to push ethanol use.

The group provided information about health and safety studies on ethanol and did its best to assure state and petroleum-marketing officials that Nebraska companies could provide a ready supply of ethanol. Marketing efforts are continuing on the supply question.

"We had a very good reception. That looks to be a very good market," said Agriculture Director Merlyn Carlson, noting Nebraska offers the best and closest supply of ethanol for California.

But ethanol isn't a done deal either for California or the EPA.

Johanns said the additive faced opposition from the petroleum industry, which sees it as competition.

Both California and the EPA report suggested easing the clean air standards as another alternative. Sneller, a member of the EPA review panel, voted against that recommendation and wrote a minority report.

He said Nebraska officials have been working to address other concerns about ethanol.

Spot checks with suppliers found the cost of ethanol-blended fuel was about 2 1/2 cents less per gallon than California's reformulated gasoline, Sneller said. He noted that, since 1978, all automakers have said ethanol-blended fuel can be used safely in their vehicles.

Also Wednesday, Johanns signed a memo reminding state agency staff to use ethanol-blended fuels in state vehicles whenever possible. The state has 10 percent and 85 percent ethanol fuels at Department of Roads facilities across the state, and both fuels are available at private service stations. Some state vehicles have been converted to use 85 percent fuel.

In addition, the governor recognized members of the University of Nebraska-Lincoln engineering team that competed in the National Ethanol Vehicle Challenge.

The team, which converted a 1999 Silverado truck to burn 85 percent ethanol, took top honors for the best ethanol conversion and the most innovative component. General Motors, one sponsor of the competition, kept the truck for several weeks after the competition for additional testing.