Fuel diversity will boost Florida's energy future

Both politically and economically, reliance on foreign oil is our Achilles heel. We have the ability to reduce our reliance on foreign oil through multiple domestic energy resources, including ethanol right here in peninsula Florida. Florida can begin immediately by developing cost-effective alternative fuels to extend domestic supplies of petroleum, and create new economic opportunities as early as this year.

While responsible harnessing of existing petroleum reserves is certainly a large part of the equation, petroleum can take us only so far. Florida is not as rich in oil reserves as other states. But one area where Florida can take the lead, and set an example for the rest of the nation, is the development and production of biofuels such as ethanol.

America is currently the world's leader in biofuel production. We are sustainably producing nearly 14 billion gallons of ethanol a year. As a result, we are reducing our reliance on foreign fuel by 445 million barrels of oil per year and saving $36 billion annually that would otherwise line the pockets of foreign nations.

Additionally, U.S. production of ethanol is helping more than 400,000 Americans keep their jobs or find a new one. Further, according to research from the University of Wisconsin and Iowa State University, the use of 13 billion gallons of ethanol in 2010 reduced the cost of gasoline for Florida drivers by an average of 20 cents per gallon. Finally, the price of ethanol is much more predictable and less volatile than oil. For example, have you ever seen a barrel of ethanol swing from $40 to $100?

These economic and social benefits are just the beginning as new ethanol and biofuel technologies are being deployed and creating economic opportunities as early as 2012.

Florida should be paving the way in this sector. Hundreds of millions of dollars in capital investment is planned in Florida's renewable-fuel sector. Specifically, at least seven companies are building or planning biofuel facilities across Florida. In addition, the University of Florida in Gainesville is nearing completion on a $20 million facility to transform its state-funded research into biofuel technologies.

A recent economic assessment of one of the two advanced biofuel projects moving forward in Highlands County indicates that the energy facility, Highlands Envirofuels, would provide 65 direct jobs, 760 indirect or induced jobs, $44 million in increased household incomes, and $51 million to the state's economy as a whole. This project would utilize sugarcane to produce both renewable ethanol and renewable electricity.

And the other advanced biofuel facility in Highlands County will be using research from the University of Florida and utilizing new energy crops, such as "energy cane" and sweet sorghum.

These innovations and investments are creating a distinct Florida industry. This rapidly emerging industry is a result of a statewide legislative policy based on the growing acceptance and realization that petroleum reserves are shrinking while America's motor-fuel consumption increases. Namely, Florida's Renewable Fuel Standard is a key driver requiring the use of 9-10 percent ethanol in each gallon of gas.

This statewide policy has provided the kind of certainty and stability needed for investors to risk large sums of capital in new technologies in an already anemic and risky investment climate.

Unfortunately, some in our own state Legislature are seeking to undo this forward-looking, job-creating policy, for reasons that are still unclear to the Florida BioEnergy Association and others. Ethanol provides much-needed fuel diversity and long-term price stability in an otherwise monolithic transportation fuel market driven by volatile prices of oil coming from unstable regions of the world. This volatility has resulted in large price increases at the pump that we all feel, and economic uncertainty for businesses.

Furthermore, ethanol has been safely used in the U.S in all engine platforms for more than 30 years. Boaters in Minnesota, lawn care professionals in southern California, and drivers all across the nation (including Florida) have utilized 10 percent ethanol blends without interruption during this period.

Rather than seek a repeal of the policy simply for the sake of repeal, the Florida BioEnergy Association urges lawmakers to explore other options that both increase consumer choice and build on the success of Florida's Renewable Fuel Standard. One idea that merits consideration is to enhance consumer choice at the pump through blender pumps.

Providing incentives for blender pumps will open fuel options for higher-level blends of ethanol while still allowing for unblended gasoline sales. Thus, blender pumps will enable consumers to buy unblended gasoline or gasoline blended with ethanol up to 85 percent at the retail pump. This new policy will empower consumers and breathe life into the free market. By opening up the market, Florida consumers will be able to make the choice that is best for them, their family and their country.

The time is now to reduce our reliance on foreign fuel. Home-grown solutions like ethanol get us part of the way there.