CAPITAL SOURCES

‘More Than We’ve Ever Done’

A new law lays out an ambitious plan to reduce American greenhouse gas emissions. Can it work?

By Jessica Ramirez | Newsweek Web Exclusive

Dec 24, 2007 | Updated: 12:45 p.m. ET Dec 24, 2007

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President Bush dubbed it a "major step." House Speaker Nancy Pelosi hailed it as "a moment of change." But despite the bipartisan praise, meeting the aims of the Energy Independence and Security Act of 2007—signed into law last week—is not going to be easy. Among the most significant goals in the Act is a substantial increase in the production of renewable fuels for use in the nation's fuel supply.

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The new law calls for 36 billion gallons of these fuels per year by 2022—nearly a fivefold increase from current production. NEWSWEEK's Jessica Ramirez discussed the practicalities and potential pitfalls of the plan with Sen. Jeff Bingaman, chairman of the Senate Energy and Natural Resources Committee and one of the authors of the bill. Excerpts.

NEWSWEEK: Under this law, the United States will produce 15 billion gallons of corn-based ethanol a year by 2015. The U.S. is producing half that amount now and corn prices have soared. How will this new goal affect the price of corn and other corn-based products?
Bingaman: Frankly, there's a lot we don't know about exactly how these sorts of markets interact. Right now you have a situation where the price of corn has gone up and the price of ethanol has gone down. So it's not clear that the demand for ethanol is what's driving all of the increase in the price of corn. Yes, it is a significant increase, but I think the figure is achievable based on the expert testimony that we heard at the hearings we had.

It would require an estimated 20 million more acres of corn to produce this ethanol. Could this mean fewer acres for other produce?
I don't think you're going to see people take fruit orchards out in order to plant corn to meet ethanol demand. We had several experts talk to us about the implications of going to these levels and nobody suggested that something like that would occur.

By 2022, Congress wants 21 billion gallons a year of advanced biofuels. Does the U.S. really have the technology to do this in five to 15 years?
Well I think we've got the technology, but we are now only really beginning to see commercial plants constructed to use that technology on a large scale. That's the part that's still uncertain—how rapidly you can begin producing substantial quantities from these sources. There are some people in the industry who think it can happen in the next few years. Obviously it would benefit us if it proves that it is possible. We're really betting on good ole U.S. ingenuity to find a way to accomplish this.

Only about six million cars can run on a mix of ethanol and gasoline like E85. Are there any concerns that the automotive industry won't pump up production?
The need for flex-fuel vehicles is not really mandated by this law, but independent of that, I think the auto industry is moving toward manufacturing more and more of those. For example, General Motors announced that in 2012, half of the vehicles they will be selling would be flex-fuel vehicles so they can use E85 or gasoline. I think we will continue in that direction.

Why does the Act include an escape clause?
If it could be demonstrated that this isn't feasible technologically to gear up to this level of production that's called for, then the requirement for the amount of biofuel to be produced could be waived.

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Posted By: five10man @ 04/19/2008 11:34:01 PM

It is a shame that "reporting" is done like this, where Ms. Ramirez says that "X is true, therefore what do you think, Senator?" rather than telling us, for instance, about how much it would cost to convert the non-flex-fuel vehicles to run on E85 (less than $300 if the dealer makes a packet on each one.) With this sort of writing, we are left to assume that Ms. Ramirez is an expert in the subject of flex-fuel vehicles, and is competent to quiz the senator and to inform us.
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Posted By: Froggie76 @ 01/03/2008 2:06:18 AM

You definitely need to check your "facts" about ozone level depletions. Have some humility and intellectual honesty to check here : http://en.wikipedia.org/wiki/Ozone_depletion

Global Warming and Ice Age are misnomer for the real events. Climate Change is not.
Depending on the regions and the seasons, areas will suffer increase alterations in climatic events (ie increased drought or rainfall occurences). Coupled with the endangerment of coastal areas (up to 100km inland from sea) due to sea levels rise and atmospheric pressures (wind currents), which directly affects over 60% of the world population, you have serious food for thoughts (action would be even better).

And please stop this nonsense about the sun. The sun is expected to run out of combustible (hydrogen) in over 5 billion years. 5 000 000 000 years !!!!!!! This current climate change cycle is starting to gather irreversible strength for the next 50 to 200 years. Enough to affect your children or grandchildren for their ENTIRE lives !!

Best regards,
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Posted By: Mwalimu @ 12/30/2007 12:32:03 AM

For research, everyone should read Growing Fuel in the October, 2007 edition of National Geographic. Yes global warming is real. Currently the carbon dioxide is at 380 parts per million, we are increasing that ratio by about 2 parts per million each year. 450 parts per million is the Doomsday threshold - And remember this does not include nitrous oxide, or methane, which is currently being released in record portions from melting permafrost in Siberia. Do the math. Unless we do something drastic, the planet has only about 30 to 35 years to live.

According to National Geographic, ethanol from corn is the least effective and least efficient means of an alternative fuel. Switch grass has more promise and does not complete with food crops, or the current ecological destruction that agricultural corporations are wreaking on the planet. Even more promising is algae, which can been grown by capturing the carbon emissions from coal-burning power plants. This is already being done in Dunkirk, New York by GreenFuel technology. (Check out the MNBC website.) The new energy bill is only a start, but we still need to do a lot more. For those who keep claiming that global warming is some sort of leftist plot to destroy America, I???ve one question to ask. What state of denial are you in? It took the Catholic Church hundreds of years to finally accept Copernicus??? theory as scientific fact,.albeit Copernicus himself was a Catholic monk. This time around we don???t have a hundred years.