Abercrombie Encourages Hawaii Ethanol Production

Abercrombie encourages Hawaii ethanol production

Washington, DC -- Congressman Neil Abercrombie offered encouragement to Hawaii's infant ethanol industry in testimony submitted today to the Hawaii Fuel Ethanol Working Group.

The testimony outlined his efforts, in conjunction with Senator Daniel Akaka, to secure federal support for Hawaii sugar growers' efforts to produce ethanol from cane and sugar byproducts.

Abercrombie's statement reads:

"I am pleased to have an opportunity to give you some thoughts and ideas about the development of an ethanol program and industry in Hawaii and its importance in making our state more energy-independent.

"As you may know, Congress in August 2005, completed work on and enacted the Energy Policy Act of 2005. The new law contains numerous incentives for energy exploration, development and production. Senator Akaka and I focused our work on establishing additional incentives for ethanol production designed to both aid Hawaii's agriculture industry and make locally produced ethanol available to Hawaii consumers.

"Specifically, Section 208 of the Act authorizes the Environmental Protection Agency to provide $36.0 million in grants to sugar cane producers of Hawaii, Texas, Louisiana and Florida for the construction of ethanol facilities. The funds are to be divided equally among the four states. If fully funded, Hawaii sugar cane producers will have $9.0 million over the next 3 years to construct ethanol plants.

"Secondly, Section 1516 of the new law authorizes the Department of Energy to guarantee up to 80 percent of the cost of the construction of sugar to ethanol demonstration facilities. Projects cannot exceed $50.0 million in cost, must be designed to utilize a continuous process, be fully reviewed technically, be economically viable, and have reasonable assurance of the loan being repaid. Such demonstration facilities must use sugar cane, bagasse or other sugar byproducts, such as a feedstock.

"I believe the future of the sugar industry in Hawaii is dependent on shifting production to ethanol fuel. The state's mandate next year for a 10 percent gasoline ethanol blend is a major incentive in that it establishes a definite and specific market for ethanol. But we should not think of ethanol solely as a fuel additive. Eventually not only can the mandate be increased to much higher percentages as technology develops, but ethanol can be used to fuel electricity generating plants. Think of HECO using ethanol extensively and the amount of coal and petroleum that would no longer be needed from overseas. The savings to our consumers, who pay among the highest electric rates in the nation, would be enormous.

"All of us have seen the fallow former cane fields across the state. This is among the most productive agriculture lands in the nation and world. Not so long ago there were vast cane fields, making Hawaii green in every direction as far as the eye can see. That was a major part of the vision tourists had of our state and part of their visitor experience, and it was a source of employment for thousands of our people. It can be once again.

"This revolution in Hawaii agriculture and energy will not occur overnight, and the state has a key role in aiding and permitting ethanol projects. There is also the key question of water - where it is to come from now that much of the ditch system has fallen into disrepair from lack of use. There is the question of water diversion, storage and better use of recycled water. I urge the Department and other relevant state agencies to commit resources and personnel to this undertaking which will make our state stronger and more economically diversified."

http://www.house.gov/apps/list/press/hi01_abercrombie/Enviro_ethanol05.html