Ethanol ruling to affect Iowa
May 30, 2001
Iowa farmers await a decision from President George W. Bush concerning California’s request to be exempt from a federal law making the use of ethanol gasoline mandatory.
The 1990 Clean Air Act prohibits the use of gasoline with MTBE, a fuel additive, after the year 2002.
“The MTBE ban is for sure in California, but they are required right now to have oxygen in their gas,” said Paul Gallagher, associate professor of agriculture and rural development.
He said the denial of this waiver would force California to use cleaner burning fuels, such as ethanol.
Iowa Secretary of Agriculture Patty Judge said she is opposed to the waiver, claiming it will be a big blow to the Iowa economy.
“The California market, with the ban of MTBE, will have to replace it with ethanol, and that could result in a billion dollar market for ethanol and us,” she said.
Lucy Norton, director of marketing for the Iowa Corn Grower’s Association, said ethanol is a fuel additive that is being touted as an alternative to traditional fuels.
“Ethanol contains oxygen, and when it is combined with gasoline at the 10 percent level it improves fuel combustion,” Norton said. “The oxygen content in ethanol then also reduces carbon monoxide emissions by 25 percent and carbon dioxide by 30 percent.”
Norton said Iowa is second in the nation, behind Illinois, in ethanol production.
“About 440 million gallons are produced annually from Iowa corn, and that is equivalent of 175 million bushels that are processed,” he said.
“Seven plants are in various stages of construction for production of ethanol in the state,” said Tade Sullivan, director of public affairs for the Iowa Corn Growers Association.
Sullivan said a denial of the waiver would result in “higher corn prices, increases in revenues for the state and cleaner air for California and Iowa.”
Although proponents of ethanol are outspoken about its benefits, there is still uncertainty about what Bush’s final decision will be.
“Bush really got clobbered in the presidential election in California,” said Mack Shelley, professor of educational leadership and policy studies.
“That state has been tending towards Democrats recently,” Shelley said. “The upshot of this is that the Republicans are in really deep trouble out in California. Democrats control the state Legislature and most high level positions in California.”
Judge said another influence in California, besides the political leadership, is the oil industry.
Oil companies maintain the usage of ethanol will cause higher prices at the pumps, and they can provide similar alternatives at a lower price with marginal differences in oxygen production.
Skeptics, like Judge, think Bush’s past ties to the oil industry could hinder his impartial decision.
“I think that big oil interests in California are pushing the buttons,” Judge said.
Conversely, Iowa is exerting political pressures of its own.
“Iowa is very strongly pro-ethanol, and it would be close to suicidal for a Republican president not to support it because his party at the state legislator level is worried about whether it can maintain its majority,” Shelley said.
With the Senate changing from Republican to Democratic control, Bush is faced with new influences.
Iowa Sen. Tom Harkin, Democrat and pro-ethanol advocate, is likely to take a leadership role on the agriculture committee.
“I imagine that Bush is more likely to support ethanol in general because he is going to be under more political pressure with Tom Harkin coming in as the chair of the Senate Agriculture, Nutrition and Forestry Committee,” Shelley said. “There will be more political clout behind the pro-ethanol view.”