Tuesday, Sept. 28, 2004

Governor says it's time to

end addiction to foreign oil

By FRITZ BUSCH

Journal Staff Writer

MANKATO -- Governor Tim Pawlenty announced Monday that Minnesota is the renewable fuel capital of America and that the state will continue to lead the nation toward its renewable fuel future.

Speaking during a brief stop at the Mankato Airport, Pawlenty said he will propose legislation at the 2005 session that will require gasoline with double the current level of ethanol be sold in Minnesota, from E-10 to E-20.

The 20 percent ethanol mandate will take effect when 50 percent or more of new model vehicles offered for sale in the state are warranted by such a fuel or by 2010, whichever occurs first.

The governor wrote letters to major auto makers that sell vehicles in Minnesota, asking them to update their warranties to include the use of E-20.

The action came after Pawlenty addressed concerns of gas station owners, refiners, auto makers, ATV users, snowmobilers and other interested groups.

"We've been addicted to foreign oil for too long," Pawlenty said. "The handwriting is on the wall. Using common sense, homegrown renewable fuel is good for our national security, the environment and the economy."

Brazil beat America to the ethanol punch. Spurred by high oil prices in the 1970s, pure ethanol (100 percent) is used in about 40 percent of Brazilian vehicles made by major vehicle makers. Remaining Brazilian vehicles burn gasoline with 24 percent ethanol.

A research report by the Minnesota Center for Automotive Research at Minnesota State University at Mankato showed there were no compatibility problems with 15 vehicles of various years, makes and models using gasoline with 30 percent ethanol.

Currently, a limited number of U.S. vehicles burn 85 percent ethanol (E-85).

Pawlenty will propose 2005 legislation to allow single-occupant hybrid vehicles in HOV (high-occupancy vehicle) lanes, directing the Met Council to add at least 20 hybrid buses by 2008, support to establish the University of Minnesota as a national center of excellence for biofuels research so it could seek state and federal funds to produce and use renewable fuels.

The governor signed an executive order for state government to reduce its on-road fleet use of gasoline by 25 percent by 2010 and 50 percent by 2015; and petroleum-based diesel fuel by 10 percent by 2010 and 25 percent by 2015.

The action would reduce gas consumption by 950,000 gallons and increase the use of E-85 from 68,000 gallons to 1.7 million gallons, an increase of 2,500 percent.

When asked how much the plan would cost, Pawlenty said the program would have no direct costs but that economists are creating economic models for the plan.

First District Congressman Gil Gutknecht echoed Pawlenty's plans.

"I'm very proud of what we have done here in Minnesota with renewable energy," Gutknecht said. "But we still import almost 60 percent of our oil from unfriendly countries."

Gutknecht said ethanol is holding down the cost of gasoline.

"The days of $25 a barrel oil are probably behind us," Gutknecht said.

He admitted he was surprised Congress hasn't given the Energy Bill higher priority than reorganizing the Central Intelligence Agency bureaucracy since energy prices are a big part of the cost of doing business.

"There are people in the Senate that don't want to President Bush to have an energy policy," Gutknecht said.

Minnesota Agriculture Commissioner Gene Hugoson said Minnesota has enough of a crop surplus to handle the plan requirements.

"We've got a good team effort and real good beginning to address these issues," Hugoson said.

From Mankato, the entourage flew to Pipestone to visit wind energy farms. Earlier in the day, they promoted energy initiatives in St. Paul, Rochester and Moorhead.

(Fritz Busch can be reached at fbusch@nujournal.com).