Drive for ethanol builds
By Sean Hao
Advertiser Staff Writer
Momentum is building behind an effort to require that ethanol be added to gasoline in Hawai'i.
Ethanol is a grain-based fuel used in many states. The California chapter of the AAA travel club says that using ethanol in gasoline has no significant effect on engine wear or fuel efficiency. In California a blend of gasoline with up to 10 percent ethanol content is sold. AAA says autos built since the mid-1970s should run on gasoline containing ethanol without problems, though older vehicles may experience fuel line and fuel filter problems. The oil industry disagrees. "Ethanol is less fuel efficient so you have to buy more of it to go the same distance," said Melissa Pavlicek, of the Western States Petroleum Association, which represents ChevronTexaco and Shell Oil. "Even if the price remained the same, consumers still have to pay more because they're going to have to buy more gasoline."
Tomorrow the state will hold a public hearing on proposed ethanol rules. If the hearing goes well and Gov. Linda Lingle signs off, the state could begin requiring that most gasoline include 10 percent ethanol content within 18 months.
What will ethanol do to your car?
Proponents say ethanol is a cleaner burning renewable fuel that can be produced from sugar cane, help reduce the state's dependence on crude oil, support sugar-cane jobs and result in a new ethanol industry. They estimate that ethanol will result in $104 million of new investment in manufacturing plants, 84 direct jobs and 601 indirect jobs.
Those against the use of ethanol, including local oil companies, contend that it would result in less fuel efficiency, potentially higher gasoline prices and cut into state and county tax collections.
State officials say the use of ethanol is not likely to reduce or increase gasoline prices. The state ethanol requirements are aimed more at diversifying the state's energy sources while creating new opportunities for sugar-cane growers and ethanol producers, said Maurice Kaya, energy branch administrator for the state Department of Business, Economic Development and Tourism. DBEDT is charged with drafting the ethanol regulations.
The ethanol mandate "was to look at ethanol as a renewable fuel that could be produced locally," Kaya said. "At this point it's hard to say for sure but there shouldn't be an effect on gasoline prices."
If the proposed rules don't require significant changes after tomorrow's hearing a final version could be ready for Lingle's signature within weeks, Kaya said. The ethanol requirement would take effect 18 months after being signed by Lingle, though it could be suspended under certain circumstances.
Melissa Pavlicek, of the Western States Petroleum Association, said ethanol won't reduce the amount of crude oil imported and refined in the state and will raise emissions of smog-producing nitrous oxide. Additionally, Pavlicek cited a state study that predicted ethanol use would cost consumers $20 million a year.
William Maloney, managing director for Maui Ethanol LLC — one of at least three companies planning to produce ethanol locally — countered that state and federal tax incentives should make ethanol cost competitive and possibly make it cheaper to produce than gasoline. Any higher emissions of nitrous oxide are offset by lower carbon monoxide emissions, he added.
For Hawai'i a conversion to ethanol blended gasoline could help meet renewable energy goals, said DBEDT Director Ted Liu. However, the Lingle administration has reservations about requiring the use of ethanol. Comments received during tomorrow's hearings will dictate whether further study of the issue is warranted, Liu said. The hearing starts at 10 a.m. at the State Office Tower, Room 204, 235 S. Beretania St.
"We clearly support renewable energies," Liu said. "I think ethanol is part of the renewable energies solution for Hawai'i." However, "When it comes to mandates we have to be extremely careful," Liu added.
Reach Sean Hao at 525-8093 or shao@honoluluadvertiser.com.
