WEBCommentary Contributor

Author: Paul Driessen
Date:  August 14, 2010

Topic category:  Energy

Dumb policies just keep coming
E15 ethanol mandates would bring huge benefits – for the few, at the expense of the many


If 10% ethanol in gasoline is good, 15% (E15) will be even better. At least for some folks.

If 10% ethanol in gasoline is good, 15% (E15) will be even better. At least for some folks.

We’re certainly heading in that direction – thanks to animosity toward oil, natural gas and coal, fear-mongering about global warming, and superlative lobbying for “alternative,” “affordable,” “eco-friendly” biofuels. Whether the trend continues, and what unintended consequences will be unleashed, will depend on Corn Belt versus consumer politics and whether more people recognize the downsides of ethanol.

Federal laws currently require that fuel suppliers blend more and more ethanol into gasoline, until the annual total rises from 9 billion gallons of EtOH in 2008 to 36 billion in 2022. The national Renewable Fuel Standard (RFS) also mandates that corn-based ethanol tops out at 15 billion gallons a year, and the rest comes from “advanced biofuels” – fuels produced from switchgrass, forest products and other non-corn feedstocks, and having 50% lower lifecycle greenhouse gas emissions than petroleum.

These “advanced biofuels” thus far exist only on paper or in laboratories and demonstration projects. But Congress apparently believes passing a law will turn wishes into horses and mandates into reality.

Create the demand, say ethanol activists, and the supply will follow. In plain-spoken English: Impose the mandates and provide sufficient subsidies, and ethanol producers will gladly “earn” billions growing crops, building facilities and distilling fuel.

Thus, ADM, Cargill, POET bio-energy and the Growth Energy coalition will benefit from RFS and other mandates, loan guarantees, tax credits and direct subsidies. Automobile and other manufacturers will sell new lines of vehicles and equipment to replace soon-to-be-obsolete models that cannot handle E15 blends. Lawmakers who nourish the arrangement will continue receiving hefty campaign contributions from Big Farma.

However, voter anger over subsidies and deficits bode ill for the status quo. So POET doubled its Capital Hill lobbying budget in 2010, and the ethanol industry has launched a full-court press to have the Senate, Congress and Environmental Protection Agency raise the ethanol-in-gasoline limit to 15% ASAP. As their anxiety levels have risen, some lobbyists are suggesting a compromise at 12% (E12).

Not surprisingly, ethanol activism is resisted by people on the other side of the ledger – those who will pay the tab, and those who worry about the environmental impacts of ethanol production and use.

Ethanol burns hotter than gasoline. It collects water and corrodes plastic, rubber and soft metal parts. Older engines and systems may not be able to handle E15 or even E12, which could also increase emissions and adversely affect engine, fuel pump and sensor durability.

Home owners, landscapers and yard care workers who use 200 million lawn mowers, chainsaws, trimmers, blowers and other outdoor power gear want proof that parts won’t deteriorate and equipment won’t stall out, start inadvertently or catch fire. Drivers want proof that their car or motorcycle won’t conk out on congested highways or in the middle of nowhere, boat engines won’t die miles from land or in the face of a storm, and snowmobiles won’t sputter to a stop in some frigid wilderness.

All these people have a simple request: test E12 and E15 blends first. Wait until the Department of Energy and private sector assess these risks sufficiently, and issue a clean bill of health, before imposing new fuel standards. Safety first. Working stiff livelihoods second. Bigger profits for Big Farma and Mega Ethanol can wait. Some unexpected parties recently offered their support for more testing.

Representatives Henry Waxman (D-CA), Ed Markey (D-MA), Joe Barton (R-TX) and Fred Upton (R-MI) wrote to EPA Administrator Lisa Jackson, advising her that “Allowing the sale of renewable fuel … that damages equipment, shortens its life or requires costly repairs will likely cause a backlash against renewable fuels. It could also seriously undermine the agency’s credibility in addressing engine fuel and engine issues in the future.”

Meanwhile, Congress remains intent on mandating low-water toilets and washing machines, and steadily expanding ethanol diktats. And EPA wants to crack down on dust from livestock, combine operations and tractors in farm fields.

“With Congress,” Will Rogers observed, “every time they make a joke it’s a law, and every time they make a law it’s a joke.” If it had been around in 1934, he would have added EPA. Let’s hope for some change.

Paul Driessen
Eco-Imperialism


Biography - Paul Driessen

Paul Driessen is senior policy advisor for the Committee For A Constructive Tomorrow (www.CFACT.org). He received his J.D. from the University of Denver College of Law.


Copyright © 2010 by Paul Driessen
All Rights Reserved.


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