biomass

The economic impact of Arizona’s renewable energy mandate

In a recent, rather befuddled, guest opinion in the Arizona Daily Star, solar energy advocate Terry Finefrock urges the Arizona Corporation Commission to compel our electric utilities to install more solar energy generation. Finefrock starts his article with this sentence: “I challenge the Arizona Corporation Commission to fairly evaluate all electricity-generation technologies and act to actually reduce ratepayer and taxpayer costs.” I agree with that sentence. Ironically, Finefrock’s call for mandating more solar energy will have the opposite effect.

The Beacon Hill Institute at Suffolk University in Boston, MA., has been studying the probable impact of renewable energy standards and tariffs (REST) on a state-by-state basis. This month they published their analysis of Arizona’s renewable energy mandate. You can read the entire report here.

They calculate low, medium, and high estimated impacts. Among their findings are:

The current REST rule will raise the cost of electricity by $389 million for the state’s electricity consumers in 2025, within a range of $239 million and $626 million.

The REST mandate will cost Arizona’s electricity consumers $1.383 billion from 2013 to 2025, within a range of $857 million and $2.221 billion.

Arizona’s electricity prices will rise by 6 percent by 2025, within a range of 3.7 percent and 9.7 percent.

These increased energy prices will hurt Arizona’s households and businesses and, in turn, inflict harm on the state economy. In 2025, the REST would:

Lower employment by 2,500 jobs, within a range of 1,500 jobs and 4,100 jobs.

Reduce real disposable income by $334 million, within a range of $202 million and $543 million.

Decrease investment in the state by $38 million, within a range of $23 million and $61 million.

Increase the average household electricity bill by $128 per year; commercial businesses by an average of $686 per year; and industrial businesses by an average of $28,600 per year.

See also:

Petition to Arizona legislature – Dump Renewable Energy MandatesThat post gives six main reasons why we should dump Arizona’s renewable energy mandate. Among those reason are that renewable energy such as solar and wind are much more expensive and very unreliable and the unreliability puts the stability of the electric grid in danger.

Ethanol fuel, not as green as you may think

Recently I’ve been seeing television ads promoting use of ethanol. The ethanol industry is founded solely on the myth that we must reduce our use of fossil fuels, even though the U.S. has abundant supplies. The feds have bought into that myth and have rewarded the ethanol industry with more than $25 billion in federal handouts. Big agribusiness, such as Archer Daniels Midland have been promoting ethanol use. But ethanol is not as green as alleged.

Energy Efficiency

Currently, seasonal gasoline is 10% ethanol, but E85 (85% ethanol, 15% gasoline) is being touted as a solution to our dependence on foreign petroleum sources. Ethanol contains less energy than gasoline. Consumer Reports (Oct., 2006) tested E85 in a 2007 Chevrolet Tahoe FFV (flexible fuel vehicle). CR found that E85 delivered 27% lower mileage compared to gasoline in the same vehicle. The Tahoe traveled 300 miles on a tank of E85 compared with 440 miles on gasoline, so you will have to fill the tank more often with E85. Use of the E85 fuel will cost more than gasoline to get the same energy output (depending on relative price). Because of the way Corporate Average Fuel Economy (CAFÉ) standards are structured, more large, gas-guzzling vehicles are being built as FFVs. The result is that use of E85 has actually increased national gasoline usage by about 1%.   The energy budget of ethanol is under debate. Some studies show that ethanol takes 30% more energy to produce than the ethanol contains. For instance, a study at Berkeley (Natural Resources Research, Vol. 14:1, 65-76), on the energy input-yield ratios of producing ethanol from corn, switch grass, and wood biomass, as well as for producing biodiesel from soybean and sunflower plants, concluded that corn ethanol requires 29% more fossil energy than the fuel produced; switch grass requires 45 percent more fossil energy than the fuel produced; and wood biomass requires 57 percent more fossil energy than the fuel produced.  

 

Health Implications 

Use of E85 in vehicles poses a significant health risk according to a study from Stanford University. The study found:  
 

 

that E85 vehicles reduce atmospheric levels of two carcinogens, benzene and butadiene, but increase two others-formaldehyde and acetaldehyde. As a result, cancer rates for E85 are likely to be similar to those for gasoline. However, in some parts of the country, E85 significantly increased ozone, a prime ingredient of smog.

Inhaling ozone-even at low levels-can decrease lung capacity, inflame lung tissue, worsen asthma and impair the body’s immune system, according to the Environmental Protection Agency. The World Health Organization estimates that 800,000 people die each year from ozone and other chemicals in smog.

E85 increased ozone-related mortalities in the United States by about 200 deaths per year compared to gasoline, with about 120 of those deaths occurring in Los Angeles These mortality rates represent an increase of about 4 percent in the U.S. and 9 percent in Los Angeles above the projected ozone-related death rates for gasoline-fueled vehicles in 2020.

Environmental Concerns 

It takes 1,700 gallons of water to produce one gallon of ethanol according to a Wall Street Journal report of a Cornell study. A study from Virginia Polytechnic Institute found that “the most water-efficient energy sources are natural gas and synthetic fuels produced by coal gasification. The least water-efficient energy sources are fuel ethanol and biodiesel.”  
Corn ethanol, produced in any quantity to make a difference in oil imports, will take massive amounts of land, destroy habitat and forests, and threaten our food supply.  

The Competitive Enterprise Institute estimates that it would take 546 million acres of U.S. farmland to replace all of our current gasoline use with corn ethanol. Currently, the U.S. has 440 million acres under cultivation to produce all our food and fiber. [Source]     

“In 1997, the U.S. GAO found that the ethanol production process produces more nitrous oxide and other powerful greenhouse gases than does gasoline production. A decade later, Colorado scientists Jan Kreider and Peter Curtiss concluded that carbon dioxide emissions in the production cycle are about 50 percent higher for ethanol than for traditional fossil fuels.” [Source, Ethanol: Unintended Consequences]

Ethanol is for drinking, not for burning.