January 7, 2006
Pataki Wants Drivers to Fill Up With Ethanol or Biodiesel
By DANNY HAKIM

ALBANY, Jan. 6 - Some 200,000 New Yorkers own vehicles that can run on 
corn-based ethanol instead of gasoline. But many have no idea that their 
Ford Explorers, Chevy Impalas or Nissan Titans can use this type of 
fuel, which some view as a way to liberate Americans from Middle Eastern 
oil.

In any case, the closest station carrying ethanol is in Ottawa, as the 
Northeast is the one region of the United States that uniformly does not 
offer ethanol to the public.

But Gov. George E. Pataki wants to change that and make ethanol and 
biodiesel, two controversial alternative fuels, available in the 27 
service areas on the New York State Thruway and in 100 more stations 
throughout the state as early as this year, in a first small step toward 
reducing the state's petroleum consumption. The governor is also 
proposing incentives to bring refineries that produce ethanol into the 
state.

Costs and further details of the plan, which Mr. Pataki first sketched 
out in his State of the State address on Wednesday, will not be 
disclosed until he makes his budget proposal later this month. If the 
plan is approved by the Legislature, it will give New Yorkers one of the 
nation's most diverse ranges of fuel choices. Only Minnesota offers an 
ethanol-rich blend known as E85 at more than 100 stations. Likewise, 
biodiesel is offered at only a few hundred of the nation's roughly 
180,000 stations.

Both fuels can be made from a variety of crops, trees and plant 
material, and even used grease from fast-food outlets in the case of 
biodiesel. Ethanol, or grain alcohol, is already mixed with gasoline 
sold in the New York metropolitan area, but in amounts of about 10 
percent. By contrast, E85, as its name suggests, is 85 percent ethanol.

Using it is not far-fetched. In Brazil, ethanol made from sugar cane has 
become a formidable competitor to gasoline.

Biodiesel is more commonly sold as B20, a blend of 20 percent biodiesel, 
with the rest conventional diesel fuel. While ethanol smells like 
moonshine, a car with biodiesel can smell like cooking French fries 
through a tailpipe. Both fuels have their share of skeptics and 
believers. Willie Nelson, for instance, sells his own brand of B20 known 
as BioWillie and pitches it as an alternative to consuming fuel from the 
Middle East.

The governor's plan comes after the oil price shocks of the last year 
and frustration with automakers for suing New York for adopting 
California's greenhouse gas emissions standards for cars.

The plan also includes incentives to help the state modify its 
hybrid-electric vehicles so that the cars can be plugged into stationary 
outlets to enable them to use even more electricity than fuel, a 
practice discouraged by the auto industry.

"Are we supposed to sit around and wait for Detroit to do these things?" 
said Charles G. Fox, a deputy secretary to Mr. Pataki who oversees 
energy issues, in an interview on Friday. Part of the plan, he said, was 
aimed at promoting the use of alternative fuels that can be used right 
away, as opposed to more futuristic fuels like hydrogen. Biodiesel can 
run in any diesel engine, and several million cars and trucks on the 
road nationwide can use E85.

Criticism of the governor has come from several sides.

Peter Iwanowicz, a director of environmental health for the American 
Lung Association of New York, said the environmental benefits of the two 
fuels were mixed.

"Ethanol increases ozone formation, which is obviously harmful for 
people with lung disease, and biodiesel increases emissions of nitrogen 
oxide," he said.

But a variety of research suggests that the fuels can be environmentally 
beneficial, depending on how they are produced.

Mr. Pataki has been criticized for promoting ethanol because it is made 
from corn grown in states that include Iowa, which he has been visiting 
recently to gauge support for a possible presidential run.

But even the governor's advisers say that making ethanol from corn is a 
bad idea and that they prefer using wood or certain kinds of grass.

Environmentalists have largely denounced making ethanol-capable 
vehicles, calling that a boondoggle intended for the agriculture lobby 
and Detroit. When automakers build cars and trucks that can use ethanol, 
called flex-fuel vehicles, they earn credits that make it easier to meet 
fuel-economy regulations, in turn giving them leeway to build more 
gas-guzzlers.

Automakers have also not even told many customers that they own vehicles 
with such a capability, but Mr. Fox said New York might do so by 
consulting state records. Consumers can learn if they own one by 
examining their vehicle identification number as described at 
www.e85fuel.com.

Only about 400 stations nationwide sell E85, and none of them are in the 
Northeast. On Friday, a gallon of E85 was selling for $1.73 - in part 
because of subsidies - at a station in Akron, Iowa, compared with $2.19 
for a gallon of unleaded regular.

That does not represent a discount, in real terms, because ethanol is 
less energy dense than gasoline, and a driver cannot go as far on a gallon.

Some studies, particularly a recent one by Cornell University, have 
suggested that producing ethanol from corn costs more energy than it 
creates, when the diesel fuel used by tractors and the production of 
fertilizer and other factors are considered.

"Some people think it's an environmental messiah, and other people think 
it's alchemy," said Ryan S. Karben, a Democratic assemblyman who is the 
chairman of a subcommittee on renewable fuels. "The question is why put 
such a controversial technology at the forefront of the state's energy 
strategy?"

Mr. Fox, Mr. Pataki's deputy, says the administration is far more 
interested in fostering research and development of new processes to 
create ethanol. With corn, he said, "it takes too much energy to make a 
gallon of ethanol."

Mr. Pataki has the use of a Chevrolet Suburban that can run on ethanol 
from stations available to government vehicles. If nothing else, his 
plan would allow him to keep using ethanol after he leaves office.

Stewart Hancock, a spokesman for Northeast Biofuels, a company that is 
refitting a brewery in Fulton, N.Y., as an ethanol plant, said he hoped 
to start production within a year.

"I told the governor we'd have some to put in his black Suburban before 
he leaves office," he said, "so the clock is ticking."

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