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Ethanol fueling debate

Using more ethanol may lead to more jobs, but at what cost?

Peter Marcus, DDN Staff Writer

Thursday, July 16, 2009

 


A group of Coloradans dedicated to ethanol production is pushing the Obama administration to raise the 10 percent limit on ethanol in most gasoline blends to 15 percent.

Opponents, however, call the appeal “special interest politics at its worst,” arguing that proponents are overlooking potentially harmful environmental and economic impacts of ethanol production for the benefit of the agricultural industry.

Still, Allen Mitchek, owner of a feed and grain shop in Sterling, Colo., says federal support for the industry has helped him stay afloat during difficult economic times.

“As the owner of a grain elevator and a trucking company, the ethanol industry has boosted our revenue,” said Mitchek, owner of Allen Mitchek Feed & Grain. “The ethanol industry has directly impacted our business and the local agriculture community positively.”

The Environmental Protection Agency is currently reviewing a proposal to raise the limit on ethanol in most gasoline blends to 15 percent. Less than one week remains in the EPA’s public comment period on the waiver.

Meanwhile, ethanol plants across the country are filing for bankruptcy and closing shop due to falling gasoline consumption.

“The reasons to act now are numerous, and it is apparent that increasing the allowable blend will provide a near immediate stimulus for an industry whose infrastructure development is so critical to our nation’s energy security,” said Byron Weathers and Douglas Melcher, officials with the Colorado Corn Growers Association, in a joint statement. “Corn growers have met and will continue to meet the growing demands of food, feed, fuel and fiber in an economical and environmentally responsible manner.”

But William Yeatman, a former Denver resident who is currently an energy policy analyst with the Washington, D.C.-based free market group Competitive Enterprise Institute, says that while ethanol production is good for farmers, it is bad for the rest of the nation.

He points out that as farmers ditched other crops for corn production — due to a laundry list of government production mandates, subsidies and tax credits — the overall price of food has gone up.

Scientists have also found negative ecological impacts associated with ethanol production, says Yeatman. In fact, a Denver biochemistry professor has linked ethanol with the metro area’s high ozone emissions.

Ethanol-blended gasoline burns at high temperatures during the summer, emitting more hydrocarbons, which increases ozone levels, said University of Denver professor Donald Stedman. 

“Hydrocarbons and sunshine, the complexity of it has been understood for the last 30 years,” Stedman told the Denver Daily News in August 2007 when his report surfaced. “But somehow the bureaucrats don’t understand.”

Yeatman says one reason lawmakers continue to push to raise ethanol limits is because of the strong agricultural business lobby in Congress. 

“It’s great for the agro-businesses … that manufactures the ethanol, it’s great for the farmers who grow the ethanol because it increases their price, but it’s awful for the rest of us,” said Yeatman. “It increases our grocery bill; ethanol is more expensive than gasoline … it’s awful for our environment, it’s awful for our waterways, it’s awful for the air we breathe — it’s awful across the board.”

Some lawmakers, such as Congresswoman Betsy Markey, D-Fort Collins, are hopeful for the future of ethanol production, which involves research into cellulosic ethanol, a similar product that won’t require corn, instead relying on cellulose, which is found in just about all plants across the globe.

“Allowing use of ethanol blends up to E-15 will help us preserve and enhance infrastructure that is critical to the timely development of cellulosic ethanol and advanced biofuels, have significant environmental benefits, foster our nation’s energy independence, create thousands of jobs, and stimulate economic development in communities across the nation,” said Markey.

She believes as many as 135,000 jobs can be created through the ethanol industry.

But Yeatman points out that cellulosic ethanol technology is years away, if ever, of becoming a reality.

“We’re just setting the stage for ever-increasing amounts of corn-based ethanol to be introduced into our fuel supply,” he said. “Again, it’s great for agro-businesses, but awful for the rest of us. It’s just another move on the chess board.”

 

Comments:
Crush @ 2009-07-16 08:52:18Competitive Enterprise Institute doesn't like ethanol? Go figure. He's spouting off discredited bull about ethanol, and I hope no one is taking him seriously. Report already showed ethanol only caused 0.5 percent of the huge price run-up for food last year. It was oil, electricity and other energy costs that did it. As for the environmental argument, that's bunk as well. Smog rates dropped dramatically after ethanol was introduced.
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Patrick @ 2009-08-05 11:49:03The Competitive Enterprise Institute is more about preserving monopolies rather than encouraging free markets. The net benefits of Ethanol production are good for America as a whole, but not so good for Big Oil and OPEC. As for the farmers allegedly diverting their crops to Ethanol production to the alleged detriment of food crops, don’t they trust the wisdom of the free market to work? As Crush said, their environmental argument is absolute bunk and it’s disappointing that something so discredited would be published. I would rather give my money to the American Farmer than have it go offshore every time I fill up my tank.
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