Tuesday, February 12, 2013

Ethanol in Gasoline

     Jeff Johnson in the November 26 issue of Chemical Engineering News reported on continuing the Congressional mandate for ethanol to be added to gasoline.
     Congress originally set up a Fuel Standard requiring that 13.2 million gallons of corn-based ethanol be added to gasoline in 2012 and part of 2013.
     Ethanol production for use as a motor fuel uses about 45% of the US corn crop. Because of the drought in the US this past summer, corn yields plummeted to a 17-year low. The corn harvest was 13% below the previous year and over the past three years, the price of corn has nearly doubled.
     In view of the above, nine governors, 26 senators, and 50 members of the House of Representatives, as well as many livestock, poultry and other farmers who depend on corn for animal food, requested the EPA to waive the congressionally requirement.
     Apparently, the EPA has power to grant this waiver but has refused to do so. While the EPA has power to grant this waiver under the law, it says congressional requirements for the waiver have not been met, and waving the requirement will have little if any economic impact.
      Rather than to concentrate on the position of the EPA, it seems that Congress should be doing its job of recognizing that the original mandate was in error and should be corrected by either eliminating it or modifying the Renewable Fuel Standard.
      Notice that we are now in February and that the whole issue seems to be dropped, in spite of the fact that it is still completely relevant. Present consternation is on Congressional budget cuts, and subsidies for ethanol production are a significant portion thereof. We have ample energy sources in the US, without the use of ethanol. If the ethanol subsidy is eliminated, which it should be, then there is an obvious controversy in that the present Fuel Standard still requires 13.2 million gallons of ethanol being added to gasoline.

1 comment:

  1. You should add that the Congress and the current administration very quietly let the import duties on ethanol expire last year. As a result, a significant portion of the ethanol in motor fuel is imported from Brazil. This is a political issue with domestic ethanol producers and the farm lobby firmly in the driver's seat. The chances for intelligent policy such as your suggestion are essentially zero.


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