2006
Schwarzenegger joins
Dems to tackle emissions
The state of California, which has led the way in battling tailpipe
emissions, is looking to pave the way in the fight to cut back on
global warming. In early April, San Francisco hosted Gov. Arnold
Schwarzenegger’s Climate Action Summit. Here, the governor
called for measures that would force California businesses to track
the amount of greenhouse gases (GHGs) they emit, and establish ways
to limit them.
Also discussed at this summit was a market-based system similar to the initiative
by the northeast and mid-atlantic states that would impose strict caps on the
amount of global warming gases, such as carbon dioxide and methane, emitted by
an individual company. Those whose emissions levels fall below the cap can sell
unused units to businesses that exceed allotted amounts. Similar initiatives
are being introduced by leading Democrats Fran Pavley, Fabian Núñez
and Don Perata.
Sterling Burnett, senior fellow with the National Center for Policy Analysis
in Dallas, cited a National Center for Atmospheric Research study that global
warming would only be reduced by one-fifth of a degree over 100 years if all
signatories to the Kyoto Protocol Treaty met their obligations. Supporters of
the measures counter with an estimated net benefit of $7 billion to $9 billion
for California businesses. The fact that other states would more than likely
follow California’s lead would also help in the reduction of global warming
gases.
Solutions to lessening
fuel consumption grows
The United States consumes 21.5 million barrels of oil per day,
and the number is projected to reach 28 million by 2030. Each day 10
million barrels of oil are imported, 50 percent of which comes
from the Organization of Petroleum Exporting Countries. The U.S. dependence
on oil is a result of people driving farther to work and taking
more
trips than ever before. Meanwhile, mass transportation, which peaked
around 1950, has declined since the country’s economy stabilized
after World War II.
One solution is obvious: Use less oil. Walk to work, utilize mass
transit and buy more fuel-efficient automobiles. Other solutions
can be found growing all
around us. Just ask Luke Tonachel, a vehicles analyst for the Natural Resources
Defense Council. Tonachel said that now is the time to invest in technology
to develop alternative fuels, better fuel-efficient vehicles and
improved public
transportation. In his recent speech at the University of Oregon, he expressed
concern for the growing oil dependency. “We really have a five- to 10-year
window to start putting these things in place before a real crisis hits.” Tonachel
went on to state that “solutions are growing,” referring to the
corn- and wheat-based ethanol fuels that burn cleaner than traditional gasoline.
EPA Study: Reduction
in Some GHG Emissions
A recent study by the Environmental Protection Agency (EPA) shows
that from a period between 1990 and 2004, emissions from certain
GHGs dropped. Methane emissions decreased by 10 percent, and nitrous
oxide emissions were down two percent. In contrast, carbon dioxide
emissions rose 1.7 percent during the same time period. Fossil fuel
consumption is responsible for 80 percent of all GHG emissions in
the United States.
EPA Administrator Stephen L. Johnson was pleased with the report, saying, “The
U.S. is making significant progress toward the president’s greenhouse gas
reduction goals.” These goals include reducing GHG intensity in the United
States by 18 percent by 2012. GHG intensity is measured by the ratio of GHG emissions
to economic output.
Ethanol sends stock
soaring
The Andersons Inc. of Ohio is best known for stores that feature
microbrews, fresh breads and garden supplies. But its recent entry
into the ethanol market has seen booming outlay as investors are
betting that new energy regulations and high gas prices will steer
consumers to ethanol rather than gasoline. This is just one example
highlighting the soaring interest in the alternative fuel.
“Right now, making ethanol is almost like having a money machine,” said
Spencer Kelly, an ethanol analyst for the Oil Price Information Service in Rockville,
Md. “Ethanol looks strong as long as gasoline prices stay strong and corn
prices are low.”
With refiners looking for more ethanol to replace natural-gas derivative methyl
tertiary butyl ether (MTBE) and Congress passing an energy bill requiring greater
ethanol-additive use, companies involved in the future of cleaner burning fuels
are cleaning up. The Andersons Inc. saw shares go from just under $8 per share
in 2001 to $91.40 as recently as April 17. Other companies, such as Pacific Ethanol,
are reaping benefits as well.
Analyst Paul Resnik of Dutton Associates, believes that these companies have
a sound strategy for the future but warns of investing heavily in alternative
fuels. Ethanol, which is a corn-based fuel, is contingent on the weather and
crop conditions. An increase in the cost of corn could spike a large cost increase
for these companies.
Texas town introduces
biodiesel to public
For more than a year, the city of Denton in North Texas has been
using biodiesel to fuel its government automobiles. Now the cleaner
burning alternative fuel is available to its residents as well. The
fuel, which consists of a mixture of 80 percent diesel and a 20 percent
combination of cottonseed, sunflower seed, soybeans and used cooking
oil, is supported by state and federal legislation to reduce toxic
emissions and improve air quality.
The price of the fuel was listed at $2.69 per gallon at press time, but these
prices change each shipment at Rudy’s, a Denton filling station. Robert
Wolf, a partner in the Denton Rudy’s, has been using biodiesel whenever
he can find it. He believes that the cleaner burning fuel will catch on. “What
you look for is people who have never used it, and they try it and find it is
a good alternative,” Wolf stated.
Although biodiesel fuel is a cleaner burning fuel, Blake Morgan, a spokesman
for Biodiesel Industries, warned that those who use it need to be diligent about
checking their fuel filters. In addition to emitting less GHGs, biodiesel fuel
cleans fuel lines, and the grime that is washed away ends up in the engine’s
fuel filter.
Kehoe Bill passes
California Senate Committee
Legislation that would require biodiesel to be blended into California’s
existing diesel fuel supply at a level of two percent by 2008, and
5 percent by 2010 is making progress. California Senate Bill 1675,
sponsored by Christine Kehoe, passed the Environmental Quality Committee
by a vote of 4-2.
The popularity of biodiesel comes from its ability to reduce GHGs. Biodiesel
is shown to emit 70 percent less GHGs and 78 percent less carbon dioxide than
diesel fuel. Made from a mixture of diesel combined with vegetable and cooking
oils, biodiesel is making strides to reduce our dependency on foreign oil.
Bill 1675, which will make its way to the California Senate Committee on Appropriations,
would increase the amount of biodiesel used in state from five million gallons
in 2005 to 61 million gallons by 2008 and 164 million gallons by 2010. To alleviate
production concerns, the National Biodiesel Board has stated that the capacity
to meet these biodiesel goals currently exists.
Gore calls global
warming a planetary emergency
Former Vice President Al Gore has warned of the dangers of global
warming for years. Stating that the planet is likely to experience
a dramatic increase in violent storms, infectious disease, deadly
heat waves and rising sea levels that will force the evacuation
of low-lying cities has thrust him into the spotlight in the fight
to reduce GHG emissions.
Now the former presidential candidate has a new campaign on his hands, changing
policies about global warming. In an effort to raise awareness of the issue,
Gore has hired longtime political associate Roy Neel and is expected to release
a book and movie titled “An Inconvenient Truth” in May.
This fight will pit Gore against his adversary in the 2000 presidential election,
President George W. Bush. Although Bush has agreed that global warming is a problem,
he disagrees with scientists that humans and the consumption of fossil fuels
play such a large role in the problem. Bush also reversed a 2000 campaign pledge
to regulate carbon dioxide, the chief global warming pollutant, and withdrew
the United States from the Kyoto climate treaty, stating that participating in
it would harm the economy of the United States.
Australian Treasurer:
Time is right for alternative fuels Citing
high gasoline prices, Australian Treasurer Peter Costello has urged
alternative-fuel makers to take advantage and start experimenting
and producing new forms of energy. Moves to alternative sources
of energy would also help break Australia’s dependence on
foreign oil, which recently reached record prices, selling for
more than $72 a barrel for crude.
Costello has told reporters that high gasoline prices are “not good for
motorists, it’s not good for consumers, it’s not good for business,
it’s not good for the economy. We had hoped that these extraordinary high
prices would pass through the system, but they have now continued for months,
and you’d have to say that until such time that world supply is boosted,
it looks like they’re going to continue.”
Australia, like California, is looking to increase the use of biodiesel fuel
to help wean itself from foreign oil dependency.
Central
America powering up with ethyl alcohol
Following Brazil’s guide as Latin America’s alternative
energy leader, Central American nations such as Guatemala, Honduras
and Costa Rica are using ethyl alcohol, made from sugar byproduct
mixed with gasoline, as a cleaner, cheaper alternative fuel. Not
only is the alternative fuel helping the environment, but it is
breathing a new life into the area’s sugar industry.
High oil prices mixed with local poverty have led this region to develop less
expensive means of energy. With sugar producers planting as much as 22,700 additional
acres in Honduras of the crop, the job growth is also starting to be seen.
In Brazil, three-quarters of all new cars burn either ethanol or gasoline depending
on which is cheaper at the pump, and ethanol is now available at nearly all of
the country’s 34,000 gas stations.
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