Monday, July 28, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Let’s get the government out of your gas tank

The U.S. Environmental Protection Agency has proposed reducing the amount of ethanol and other biofuels that must be mixed into the nation’s fuel supply. Fuel blenders would be required to use 15.21 billion gallons of biofuel in 2014, down from 16.55 billion gallons last year.

That’s a good sign that the EPA finally recognizes the federal mandate for ethanol is creating economic distortions. But the mandate should be cut much more significantly, with the ultimate goal that it be eliminated.

The Energy Independence and Security Act of 2007 set benchmarks for a huge increase in the production of domestic biofuels, supposedly to boost national security and help the environment by reducing U.S. consumption of foreign oil.

Ethanol does reduce oil consumption. But most of the ethanol in the U.S. is made from corn. Nearly 40 percent of the U.S. corn crop goes to ethanol.

Corn is the No. 1 source of livestock feed. When so much corn is diverted into making ethanol, feed prices go up. Americans subsidize ethanol through tax breaks, and then they pay for ethanol again through higher food prices.

The 2007 law encouraged research and development of biofuels made from nonedible products: grass clippings, wood chips and other forms of cellulose. The idea was to jump-start a new, environmentally friendly motor-fuel industry that did not rely on foodstuffs. That, so far, has been all promise. No cellulosic biofuel is produced on a commercial scale yet.

In the meantime, conservation efforts and a tough economy have curbed the nation’s demand for fuel. North American oil and gas production has skyrocketed, thanks to new extraction techniques. So the demand for ethanol has been far less than expected.

The biofuel lobby wants to bump up the amount of ethanol to 15 percent or more. Auto manufacturers warn that such highly diluted fuel could damage some cars. Gas stations have no reason to offer blends with more ethanol, since consumer demand for that is practically nil. That hasn’t stopped the corn growers and other pro-ethanol groups from pressing for the government to require the use of still more ethanol, which in turn would use up more corn.

None of this makes economic sense. It’s time to put a stop to the mandate.

Let’s be done with it. Get the government out of the business of mixing your gas.

— Chicago Tribune

Mcclatchy-Tribune News Service

LEAVE A COMMENT

Discussion | 2 comments

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  • The MisterJanuary 08, 2014 - 6:41 am

    Let's just get rid of the EPA. They've been shown to do little more than make law (which they are not Constitutionally permitted to do) to further an agenda... an agenda that you don't fit well into.

    Reply | Report abusive comment
  • JBDragonJanuary 08, 2014 - 1:04 pm

    The EPA does need to go!! It's almost as bad as C.A.R.B!!! Like making MTBE mandatory in California gas which ended up polluting the rivers and lakes! Now they want to place limits on things at make zero sense. Most of these Government agency's need to go and they for the most part do nothing but screw up the economy and make the government tax you for even more to pay for all this crap.

    Reply | Report abusive comment
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