At issue, 2006 August

Volume 1, Number 2

State of Georgia

August 2006

ETHANOL: "Fuel for Georgia's future?"
By: Angie Fiese, Sr. Policy Analyst
A ccording to the American Automobile Association's Fuel Gauge Report on July 20, 2006, gasoline prices in Georgia reached an average high in Atlanta of $2.990 and an average low of $2.850 in Augusta. This represented an average increase of 16.1 cents from June 20, 2006. At one point in July, crude oil prices reached $78.40 per barrel. By 2035, world oil demand is estimated to be 140 million barrels a day. Current world oil demand is estimated at 86 million barrels a day. On August 1st, Senator Tolleson mediated a legislative roundtable with Senators Bulloch, Carter, Harp, Hooks, and Tarver at the BioEnergy Conference in Tifton. Their discussion focused on the potential for developing alternative fuel, such as ethanol, in Georgia to reduce the nation's dependence on foreign oil. Senator Tolleson believes that "the State of Georgia will lead the nation in the production of alternative fuels," but recognizes that the state faces significant challenges relating to the transportation, fuel quality, and infrastructure of ethanol.
Ethanol
Ethanol, also known as ethyl alcohol or grain alcohol, can be used as an alternative fuel or as an octane-boosting, pollution-reducing additive to gasoline (E85 is representative of 85 percent ethanol and 15 percent gasoline). The majority of ethanol is produced from corn, but it can also be produced from many other crops including wheat, barley, milo/sorghum, and sweet potatoes. New technology will allow ethanol to be made from "cellulosic" feedstocks, including corn stalks, grain straw, paper pulp, municipal solid waste, switchgrass, and other sources.

At A Glance:
Voter ID
By: Taryn Murphy, Sr. Policy Analyst Jeff Walker, Policy Analyst
During the 2006 Legislative Session, the Georgia General Assembly passed Senate Bill 84 which provides for the availability of free Georgia Voter Identification Cards and requires that the State Election Board outfit all county boards of registrars with the necessary equipment to produce the Georgia Voter Identification Cards. This legislation also provides that the voter must present one of the following forms of identification: (1) a Georgia Driver's License; (2) a Georgia Voter Identification Card or an identification card issued by a department branch, agency, or entity of the state of Georgia; (3) a United States Passport; (4) a valid United States Government photograph identification card; (5) a United States military identification; or (6) a tribal identification card. The U.S. Department of Justice approved this law in June.

The United States ethanol industry produced more than 3.4 billion gallons of ethanol in 2004, representing an increase from 2.8 billion gallons in 2003. According to the Renewable Fuels Association, as of May 31, 2006, there are currently 100 operating ethanol plants in the United States capable of producing more than 4.7 billion gallons of ethanol fuel each year. An additional 33 plants are under construction, while eight are being expanded, to yield an additional two billion gallons in annual ethanol production.
President Bush's Advanced Energy Initiative provides for a 22 percent increase in clean-energy research at the Department of Energy. The President seeks accelerated research in technology that produces cellulosic
(Continued on Page 2)

Recently, Georgia's voter photo identification law suffered two setbacks, in the form of a 2005 federal court case, Common Cause/Georgia v. Billups, and a 2006 state court case, Lake v. Perdue. On September 19, 2005, several non-profit organizations and two voters filed suit against the Georgia Boards of Election and Secretary of State Cathy Cox, alleging that the voter ID law violates the Georgia Constitution, the 14th Amendment of the United States Constitution,
(Continued on Page 3)

Page One

At Issue

Senate Research Office

Ethanol (Continued from Page 1)

ethanol with the goal of making use of percent methanol, the league's former The Georgia Center for Innovation

such ethanol practical and competitive race fuel. Beginning with the '07 sea- recently awarded a $100,000 research

within six years. The President's 2007 son, Indy will be powered by 100 per- grant to the Georgia Institute of

Budget will include $150 million, an cent ethanol.

Technology on behalf of C2Biofuels

increase of $59 million from the 2006

for further research of cellulosic etha-

Ethanol in Georgia Budget, to help develop bio-based
transportation fuels from agricultural

nol production. Chevron has formed a partnership with Georgia Tech's Stra-

waste products, such as wood chips, By Executive Order, Governor Perdue tegic Energy Institute and will con-

stalks, or switchgrass. Research sci- has charged the Georgia Environ-

tribute up to $12 million over five

entists confirm that accelerating re- mental Facilities Authority (GEFA) years for research into and the devel-

search into "cellulosic ethanol" can with the responsibility of assembling opment of emerging energy technolo-

make this type of fuel cost-competitive stakeholders to develop a long-term, gies.

by 2012, thus offering the potential to comprehensive statewide energy strat-

displace up to 30 percent of the na- egy and with developing an imple- Xethanol plans to build a 50 million

tion's current fuel use. The President mentation strategy that ensures that gallon per year cellulosic ethanol plant

also signed the Energy Policy Act of Georgia fully leverages federal renew- in Augusta, which would start produc-

2005, which strengthens the nation's able energy incen-

ing ethanol by mid-

electrical infrastructure, reduces the tives. The Georgia

year 2007. Xethanol

nation's dependence on foreign

Department of

is purchasing the

sources of energy, increases conserva- Natural Re-

plant site from

tion, and expands the use of renewable sources, Environ-

Pfizer, Inc., which

energy.

mental Protection

could create up to

Division was

100 jobs. First

All vehicles in the United States are charged with

United Ethanol, LLC

ethanol capable and can use a blend of streamlining the

is planning to start

up to 10 percent ethanol. Flexible-fuel permitting and

construction this Oc-

vehicles (FFV) can run on blends of up regulatory proc-

tober on an ethanol

to 85 percent ethanol (E85) or

esses to ensure all

plant in Camilla,

straight, unleaded gasoline. Daimler- proposed renew-

which would produce

Chrysler, Ford Motor Company, and able energy facili-

ethanol from corn.

General Motors Corporation have

ties receive a 90-

C2 Biofuels is explor-

announced plans to double the annual day permit review.

ing a $150 to $200

production of FFVs to two million by The Executive

million plant in

the year 2010. There are currently Order also re-

South Georgia that

about five million FFVs on the road quires all state-

would produce etha-

today. Other vehicles may be techni- owned fueling

nol from wood pulp.

cally converted to E85; however, there are no conversions or after-market parts that have been certified by the

facilities to maximize the purchase of gasoline

Col. Rick Riera, Fort Benning garrison

While the new ethanol industry is grow-

Environmental Protection Agency as blended with etha- commander in Columbus, ing, other issues

meeting clean exhaust emission stan- nol and diesel fuel fills a government vehicle must be resolved be-

dards. Ford has also formed a partner- blended with bio- with E-85 ethanol.

fore its potential in

ship with VeraSun, a renewable en- diesel for use in

Georgia can be real-

ergy company, to promote the growth state vehicles when available and eco- ized. These issues relate to the trans-

of E85 infrastructure and to increase nomically practicable. A separate Ex- portation of ethanol, the quality of the

consumer awareness.

ecutive Order creates a State Facilities ethanol fuel, and the lack of infrastruc-

The Indy Racing League announced last year that, beginning with the 2006 IndyCar Series season, ethanol would be the League's fuel of choice.

Energy Council responsible for recommending energy policies, purchasing strategies, and optimizing strategies for state facilities which will re-

ture in the state. Currently, the method for transporting oil or fuel is through the use of metal pipelines, tanker trucks, or railway tankers.

This year's season will be powered by duce the state's energy consumption.

(Continued on Page 4)

a blend of 10 percent ethanol and 90

Page Two

At Issue

Senate Research Office

At A Glance (Continued from Page 1)

the Civil Rights Act of 1964, the Vot- However, the court decided in favor of will have difficulty traveling to the

ing Rights Act of 1965, and consti- the plaintiffs on the undue burden is- Georgia Department of Driver Ser-

tuted both an undue burden on the sue. According to the judge, the law vices during its limited business hours

fundamental right to vote and an un- cannot survive under either a strict and waiting in long lines. The single

constitutional poll tax. Common

scrutiny standard or a more flexible mobile ID unit in Georgia is not suffi-

Cause/Georgia v. Billups was heard by standard because there are fatal flaws cient to serve all 159 counties. Also,

the federal court for the Northern Dis- in the statute that create an undue the opportunity to avoid paying a fee

trict of Georgia.

burden on some voters. Under strict for the ID by signing a poverty affida-

scrutiny, although preventing voter vit is not sufficient to remove the

The state's position, as argued by the fraud is a legitimate state interest, this monetary burden, because many vot-

attorney general, was that the photo statute was not narrowly drawn to ers may not consider themselves indi-

ID requirement is not an undue bur- attain that goal. The court pointed gent; therefore, they may not feel

den because it does not prevent any- out that the law focuses exclusively on comfortable signing a legally binding

one from voting; the law merely regu- in-person voting where there is very document to that effect.

lates the manner of voting. Requiring little evidence of fraud,

a photo ID for in-person voting is a while ignoring absen-

reasonable means of achieving a legiti- tee voter fraud where

mate state interest, that of preventing there is significant evi-

in-person voter fraud. Also, the state dence of fraud. If the

argued that it is not required to ad- purpose of the law is to

dress all voter fraud problems at once, prevent voter fraud,

and preventing in-person voter fraud then it is not narrowly

should be considered a legitimate state tailored to do so be-

interest regardless of how the state cause the law ignores

treats absentee voting.

absentee voting.

Federal Court's Decision

On October 18, 2005, the court

granted plaintiffs a preliminary in-

On the poll tax issue, the state claimed

junction, prohibiting the state from Requiring a photo ID
enforcing the disputed provisions of

that the law allows people to avoid paying any fee by filing a poverty affi-

the law during the November 2005 county and municipal elections. The

for in-person voting is a

davit, and the state has a "no questions asked" policy. The court disagreed,

court found that the plaintiffs had

reasonable means of

shown a substantial likelihood of suc-

because many voters may be unaware of this policy. Also, the judge held

cess on the merits of the undue burden achieving a legitimate
claim and the poll tax claim, the in-

that the state did not adequately publicize the absentee ballot loophole to

junction was necessary to prevent irreparable injury, the injury outweighs

state interest, that of

the photo ID requirement. Therefore, the court held that the photo ID re-

the harm the injunction would inflict on the state, and the injunction would

preventing in-person

quirement is a poll tax, which violates the 24th Amendment and the Equal

serve the public interest. The decision was based only on those two issues,

voter fraud.

Protection Clause. The court further rejected the state's claim that the

because federal courts are barred from - Attorney General Thurbert Baker deciding on state constitutional

availability of provisional ballots cures the law's burden on voting, because it

claims, and the plaintiffs had not pre-

is unlikely that a voter who lacks a

sented full arguments on the Civil

Under the flexible standard, the state's photo ID at the time of voting will be

Rights Act and Voting Rights Act

argument also fails because the law's able to acquire a photo ID in a 48-

claims.

burden on voting outweighs the inter- hour time period.

ests served by the statute. The bur-

(Continued on Page 5)

den is significant because many voters

Page Three

At Issue

Senate Research Office

At A Glance (Continued from Page 3)

2006 Legislative Response a preliminary injunction against en- statute affects the methods and proce-

The Georgia General Assembly

forcing the law during the primary dures of voting, rather than voter reg-

amended the law in January 2006 to election and any resulting run-off elec- istration; therefore, Article II, Section

allow voters to obtain free ID cards by tions. The Georgia Supreme Court 1, Paragraph 1 is the applicable consti-

swearing that he or she desires the denied an emergency stay of injunc- tutional provision. The superior court

card in order to vote, and that he or tion that was filed by the state.

granted the preliminary injunction

she does not have any other form of

with little explanation, stating that

acceptable identification. The law was Article II, Section I, Paragraph 2 of the law violates the Georgia Constitu-

also amended to require that every the Georgia Constitution states that tion by placing a restrictive condition

county in Georgia establish at least every person who is a U.S. citizen, a on the right to vote.

one location where voters can apply Georgia resident, and at least 18 years

for and obtain the ID.

old is entitled to vote in any election. The plaintiffs argued that this para-

Current Situation

Soon after these changes were made, the plaintiffs filed an amended complaint with the same federal district court to reflect the changes made by the General Assembly, requesting a new injunction to prevent enforcement of the Act during the 2006 elections. The federal district court granted a preliminary injunction on July 14, 2006, a few days before the July 18th primary election. The court found that, based on the changes to the law in 2006, plaintiffs were not likely to succeed on the poll tax issue. However, the court issued an injunction based on the likelihood of success on the undue burden issue.

graph provides an exclusive list of

As of August 2006, the federal court

prerequisites to voting, and it does not injunction remains the only impedi-

allow the legislature to create addi- ment to the implementation of the

tional requirements. Therefore, the Voter ID law, as amended during the

photo ID law is unconstitutional be- 2006 Legislative Session. It is impor-

cause it might prevent a person from tant to note that the district court as-

voting who meets all constitutional serted that if the state takes sufficient

requirements.

steps to inform voters of the 2006

law's photo ID requirements, the stat-

ute may survive the undue burden is-

Article II, Section I,

sue in time for the November 2006 general election. In other words, the

Paragraph 2 of the

court held that the burden on a voter to go to the Department of Driver

Georgia Constitution

Services in order to obtain a free voter ID is minimal, and the state may have

states that every person

time to lift the burden with sufficient advertising of the law and its require-

The court granted the preliminary injunction because the timing of the

who is a U.S. citizen, a

changes to the law did not leave adequate time prior to the primary

Georgia resident, and at

election for voters to conform to its requirements. According to the court,

least 18 years old is

ments before the general election. The state court decision in Lake v. Perdue was in effect for the primary election and run-off election only; therefore, this injunction will not apply in November 2006. SRO

although the 2006 law itself may not impose an undue burden, the fact that

entitled to vote in any

the state did not begin implementing the law until a mere three weeks be-

election.

fore the primary elections constituted

the burden.

The state argued that the law does not

create additional prerequisites to vot-

State Court Case
Lake v. Perdue, filed by two voters on July 3, 2006, is based solely on the claim that the 2006 amended law violated Article II of the Georgia Constitution. On July 7, 2006, a Fulton County Superior Court judge granted

ing, but only regulates the voting process, which is permissible so long as the law regulates a time, place, or manner of voting. Article II, Section 1, Paragraph 1 of the Georgia Constitution provides that the legislature may regulate the method of voting. According to the state, the photo ID

Page Five

At Issue

Senate Research Office

Ethanol (continued from Page 2)

Ethanol differs from traditional fuel E-85 Infrastructure Grants and Incentives

because it absorbs water and, in high

concentrations, is corrosive to metal pipelines. Massive quantities of ethanol will need to be transported by tanker trucks or railroads, which is
more expensive and complicated.

Federal
Section 1342 of the Federal Energy Policy Act of 2005 provides a tax credit equal to 30 percent of the cost for alternative refueling property, up

the improvement or $30,000, whichever is less. The Iowa House File 2759 (appropriations bill) appropriates $2 million per year from the Iowa Values Fund.

Since ethanol's properties are different to $30,000 for business property. It is

Ohio than traditional gasoline, there are
certain quality control/quality assurance tests and standards that must be achieved before E85 can be sold. Furthermore, storage and dispensing equipment at retail stations must be E85 compatible. Soft metals such as zinc, brass, or aluminum, which are commonly found in conventional fuel storage and dispensing systems, are not compatible with ethanol, especially at the higher concentrations found in E85 motor fuel. Some nonmetallic materials may also degrade when they come in contact with
Illinois ethanol.

scheduled to expire December 31, 2009. The Clean Cities Coalition program is soliciting proposals for grant funding for refueling infrastructure projects that include new dispensing facilities, or additional equipment or upgrades, and improvements to existing refueling sites for alternative fuel vehicles. The U.S. Department of Energy's State Energy Program grants are awarded through the Clean Cities program category and fund alternative fuel infrastructure, such as E85 refueling infrastructure.

The Ohio Biofuels Retail Incentive Program (OBRIP) provides funding to owners of retail fuel stations to assist with the installation and promotion of E85 and/or B20. The OBRIP will provide up to $135,000 through June 2006, with additional funding anticipated in July 2006. Generally, applicants for E85 incentive awards may receive up to $5,000. Applicants must provide matching support, cash and/or in-kind, equal to the amount of incentive funds provided (the incentive may not exceed 50 percent of the total costs, including cash and in-kind support, of the project). Applicants

Tennessee Currently, there are no listed public
E85 refueling locations in the state. Refueling locations are only located at the Marine Corps Logistic Base in Albany, Ft. Benning in Columbus, and PC Energy in Atlanta. Many retail gasoline stations are eager to sell E85, but do not have the financial capability to install E85 infrastructure. Various federal and state incentives and/or grant programs have been created and implemented to encourage the development of E85 infrastructure. SRO

Through the Opportunity Returns Initiative and a grant from the Illinois Clean Energy Community Foundation, $500,000 in funding is now available for the Illinois E85 Clean Energy Infrastructure Development Program, to establish new E85 facilities at retail gasoline outlets in Illinois. The program, administered by the Illinois Department of Commerce and Economic Opportunity, will provide up to 50 percent of the total cost for converting an existing facility (maximum grant of $2,000 per site) to E85 opera-

may count support available from third parties as part, or all, of their match requirement.
The Tennessee Department of Transportation (Department) is authorized to undertake public-private partnerships with transportation fuel providers to install a network of refueling facilities, including storage tanks and fuel pumps, dedicated to dispensing biofuels including E85 and bio-

tion, or for the construction of a new diesel. The Department is also au-

At Issue

refueling facility (maximum grant of thorized to establish a grant program

up to $40,000 per facility).

to provide financial assistance to help

At Issue is published monthly during

pay the capital costs of purchasing,

Iowa the interim. For more information on

preparing and installing fuel storage tanks and fuel pumps for biofuels at

this publication contact the Senate Iowa's Renewable Fuels Infrastruc- private sector fuel stations. SRO

Research Office in Suite 204 of the

ture Program is a cost-incentive program which will provide financial as-

Coverdell Legislative Office Build- sistance to persons installing E85 and

ing or by calling 404.656.0015.

biodiesel dispensing equipment. The

- - Jill Fike, Director

financial incentive may not exceed 50 percent of the actual cost of making

Page Four

At Issue

Senate Research Office

In Brief . . .

High School Athletics Overview Committee NCSL Legislators Back to School Program

The first meeting of the High School Athletics Overview The America's Legislators Back to School Program

Committee convened on August 4th in the Atlanta with (BTSP) is your opportunity to visit elementary, middle,

Co-Chairs Senator Judson Hill and Representative Chuck and high school classrooms in your district to meet with

Martin. The Committee was created as a means of evalu- young constituents and share ideas, listen to concerns,

ating the ability of high school athletic associations to

answer questions, and provide students with a greater un-

fairly and equitably establish and implement standards and derstanding of the legislative process.

to promote academic achievement and good sportsman-

ship.

The BTSP is sponsored by NCSL and is designed to teach

young people--the nation's future voters and leaders--

The Committee heard testimony from Dr. Ralph Swear- what it is like to be a state legislator: the processes; the

ingin, Executive Director of the Georgia High School As- pressures; and the debate, negotiation and compromise

sociation (GHSA). Dr. Swearingin provided the Commit- that are the very fabric of American democracy. School

tee with an overview of GHSA and its current priorities principals, teachers, and students have given state legisla-

for regulating high school athletics in Georgia. The next tors an "A" for bringing civics to life for young people dur-

meeting will be held in September to further discuss the ing the event.

performance of high school athletic associations. SRO

The program kicks off the week of September 18th through

the 22nd and continues throughout the school

DeKalb County Government Senate Study Committee

year. Please call Asenith T. Dixon at (404) 656-0021 if you would like to participate. SRO

The DeKalb County Government Senate Study Commit-

tee is reviewing various organizational forms of govern-

ment which would facilitate a more effective and efficient county government and democratic representation. The

Georgia Healthcare Transformation Study Committee

Committee's review will include city incorporation, analy- The Georgia Healthcare Transformation Study Commit-

sis of DeKalb County Government, and the expansion of tee will hold its first meeting on September 7th in Atlanta.

existing cities. The Committee's first two meetings fea- The Committee will discuss a broad range of topics con-

tured speakers from various groups including: the Asso- cerning the overall healthcare system in Georgia. SRO

ciation County Commissioners of Georgia; the Carl Vin-

son Institute of Government; the Georgia Municipal Asso-

ciation; and various civic groups from different areas of the county. The Committee's third meeting will likely be

Senate Septage Disposal Study Committee

held later in September. SRO

The Senate Septage Disposal Study Committee held its

second meeting on August 29th in Albany. The Commit-

tee heard presentations from the Department of Natural

Joint State Trauma Services Study Committee

Resources, the Douglasville-Douglas County Water & Sewer Authority, and the Southwest Georgia Health Dis-

The Joint Comprehensive State Trauma Services Study trict. SRO

Committee held its first meeting in Atlanta on August

14th. The meeting was followed by a tour of Grady Hospi-

tal and the Atlanta Medical Center. Various members of the press joined the Committee for its tour of Grady and

Joint Water Desalination Study Committee

11alive news ran a very good piece on the day's events re- The Joint Comprehensive Water Desalination Study Com-

flecting the importance of the Committee's work. The mittee held its first set of meetings August 23-24th in St.

Committee will hold its next meeting on September 11th in Simons Island. The Committee heard testimony about the

Macon. SRO

basics of desalination, desalination efforts in Texas, Flor-

ida, and California, as well as the permitting and legal bar-

riers to undertaking a desalination effort in Georgia. SRO

Page Six

At Issue

Senate Research Office