Sentinel staff writer

SANTA CRUZ -- A new choice at the gas pump that's designed to fight global warming and save drivers money is headed to Santa Cruz.

The city redevelopment agency and the International Institute for Ecological Agriculture have joined together to deliver an ethanol fueling station at a vacant city-owned parking lot on Soquel Avenue near Benito Avenue.

The agency -- as part of its commitment to the Climate Action Compact signed a few months ago by the city, county and UC Santa Cruz to cut greenhouse gas emissions -- will lease the lot to the institute for five years.

The Santa Cruz station would become the second such fueling station in California. The only other public ethanol station is 400 miles away in San Diego.

"We are helping to facilitate public access to alternative fuels that reduce greenhouse gas emissions," Bonnie Lipscomb of the redevelopment agency said. "I think there is a growing local demand for alternative fuels and that demand will increase in time for other cities as well."

Ethanol, the same alcohol found in beer and wine, is touted as a cleaner burning fuel when mixed with conventional gasoline.

But not everyone believes ethanol is the cure for global warming, and opposition to the alternative fuel has grown in the past year.

Supporters say it can reduce carbon dioxide emissions up to 40 percent compared to conventional gasoline, and it burns at a cooler temperature, which allows an engine to last longer.

Anything containing sugar or starch can be fermented and distilled into ethanol, though corn, by far, is the most common ingredient.

Corn-based ethanol is widely used as a motor fuel in other parts of the country and the world, namely Brazil where many cars have run on the blended fuel for years.

Gasoline in California already contains 6 percent ethanol. However, the push is on to increase levels to 10 percent by 2010 -- part of the state's aggressive approach toward combatting climate change.

David Blume, founder of the International Institute for Ecological Agriculture, wants to take ethanol to an even higher level.

He proposes offering E100, the combination of 98 percent alcohol and 2 percent gasoline, at the Santa Cruz station.

"This is a revolution," said Blume, a Santa Cruz resident since 2001. "We're going to be doing things never done before."

All flex fuel vehicles are able to use 85 percent ethanol with 15 percent gasoline, known as E85. E100 would require cars to undergo significant changes.

Dimitri Stanich from the state Air Resources Board said a modification kit to handle E100 has not been approved.

"No vehicle could handle that level," Stanich said. "The wiser route for Santa Cruz would be to go with an E85 station."

Blume and other ethanol fans say the alternative fuel could offset the country's dependence on foreign oil and bring big savings to drivers as the cost of standard gasoline continues to rise. Some predict gas prices could hit $4 a gallon in early 2008 while ethanol currently sells for about $2.50 a gallon.

For all the alleged economic and environmental benefits of ethanol as an alternative fuel, a number of critics say producing ethanol is more expensive and energy-intensive than gasoline.

Most ethanol in California is shipped by train from other states, which adds to air pollution and offsets a lot of the benefits of ethanol, critics say.

The state's first ethanol plant, Pacific Ethanol, which is owned by former Secretary of State Bill Jones, began producing fuel last year. Two other plants are under construction in the state.

Ethanol production is criticized for driving up the cost of corn and causing food prices to soar in countries such as Mexico where complaints about rising tortilla prices have become common.

Livestock farmers who need corn for feed have voiced frustration with the higher prices, and they've sided with oil companies in opposition to tax breaks and subsidies for ethanol production.

"It's a trade-off," Stanich said. "But ethanol is a cleaner burning fuel than gasoline."

And few mechanics recommend using ethanol at the levels Blume proposes.

"The biggest problem I see is the absorption of moisture and the inability to filter moisture out of ethanol," said auto technician Jack Sparks, owner of DMV Auto Clinic. "Then you can get rust and shellac.

"Is ethanol going to make our cars run efficiently and get us to where we need to go? My answer is no."

Ethanol produces slightly less energy than standard gasoline, which means drivers have to use more of it to go the same distance.

Nate Smith, who specializes in maintaining high-end foreign cars, said BMW doesn't want more than 6 percent ethanol used in their cars.

"With virtually everything we do there's a trade-off," Smith said. "With ethanol you can be more prone to corrosion than with gasoline. I wouldn't use it."

The city Public Works Department recently has purchased several vehicles that can be adapted for ethanol use, and Public Works officials are considering a potential ethanol station for fueling city-owned cars.

The Monterey Bay Unified Air Pollution Control District awarded the city a $170,000 grant in October to help establish the ethanol station, which Blume estimates will cost a total of $206,000. The balance would be picked by the institute.

Blume hopes to have the station up and pumping by June.