Corn growers press ethanol on New York state
Date: 02-Nov-01
Country: USA
The National Corn Growers Association (NCGA) joined the New York Corn Growers Association and New York state senator Jim Wright to promote the use of corn-based ethanol in the state's gasoline.
The use of the renewable fuel, which is mostly produced in the Midwest, would "sustain and enhance the rural economy of upstate New York," said Kevin Swartley, President of the New York Corn Growers Association.
In the press conference, which took place in Albany Thursday morning, the groups said they were exploring the building of plants for making fuel-grade ethanol from corn in New York State. None currently exist in the state.
These plans were already underway, the speakers said, but hastened by the terror attacks on New York and the U.S. Pentagon on Sept. 11. Ethanol advocates argue that use of the additive, which is made domestically, can lessen the country's dependence on foreign oil.
However, critics argue that ethanol can actually contribute to low-level smog in certain conditions and worsen the environment. Moreover, half the ethanol produced in the U.S. is produced by Archer Daniels Midland, which contributes heavily to both Democrat and Republican campaign chests, a point often mentioned by consumer watch groups and opponents of the fuel.
Currently, New York uses MTBE, or methyl tertiary butyl ether, to make gasoline burn cleaner in the smoggist regions where federal laws require an additive. Much of the MTBE used in the U.S. is imported from other countries, such as Saudi Arabia, Venezuela, Qatar.
Because of the discovery of groundwater contamination, coupled with suspicions that MTBE causes cancer, New York has joined a growing number of states that have banned the additive. Unless the ban is somehow overturned, MTBE is scheduled to be phased out by Jan. 1, 2004.
The Clean Air Act of 1990 requires the use of an oxygen-enhancer like MTBE or ethanol in cleaner-burning "reformulated" gasoline. New York has asked for a waiver from that requirement from the Environmental Protection Agency (EPA), but unless it is granted, or the Clean Air Act is revised, the state will have to use ethanol-blended gasoline by 2004.
Basing the calculations on the state's current use of MTBE, the NCGA estimates New York's ethanol demand at 200 million gallons a year by 2004.
The NCGA also said unlike the current situation in California, where the state has banned MTBE, been denied an EPA oxygenate waiver and is fighting against ethanol-blended gasoline, the product is getting a "warm reception in Albany," the state capital of New York.
However, like California, the state is asking for a waiver to make reformulated gasoline without either oxygenate.
The representatives also said the country had the available infrastructure to supply New York with ethanol from the Midwest, even after 2003, where California demand is expected to be 680 to 900 million gallons a year.
However, California state officials may disagree, as they say the added transportation costs will cause gasoline prices to spike as much as 50 cents a gallon at the pump.
