Cost of Ethanol

[usranger74]

Today Sen Cobrun (R-OK) released a budget for USA. He covered how he would decrease spending and also increase revenue. Under revenue enhancement he addressed ethanol. Following is in his budget report

To save a lot of reading, the COB says each gal. of ethanol cost taxpayers (that's 49% of us) $1.78/gal


Ethanol Tax Incentives

In the 1970s, Congress began providing federal assistance for the domestic production of ethanol, which included the establishment of the Renewable Fuels Standard (RFS) that created a permanent market for the industry. Since that time federal assistance has grown to include multiple tax incentives and federal grant programs. Most recently, EPA issued a decision to increase the current fuel blend wall from ten percent to fifteen percent (E15), effectively creating an even larger market for ethanol producers.

While born of good intentions, federal subsidies for ethanol now face sizeable roadblocks as consumers have protested the required use of ethanol in their fuel. Ethanol-blended fuel is nearly a third less efficient than gasoline (ethanol burns at 68 percent the energy content of gasoline), has contributed to the increased price of corn (as well as land, feed, and other input costs), and can cause engine damage.278

Overall, ethanol subsidies are outdated and have failed to achieve their goals of helping our nation to achieve energy independence. The Congressional Budget Office recently found consumers incur a cost of $1.78 per gallon as a result of federal subsidies before they even pay at the pump.279 Meanwhile, U.S. biofuels consumption remains a small share (4.3 percent) of national transportation fuel use.

The original federal ethanol mandates stemmed from several events, foremost of which was the global energy crisis of the 1970s and a desire to achieve energy independence. Over four decades later, our nation seeks this goal more than ever, but ethanol has not helped achieve this target. It is time to give taxpayers a break and allow the ethanol industry a chance to stand on its own or fail

[Sin City Stan]

Whether planned or not, ethanol subsidies were just a replacement for the land banks. The Fed. Govt. has been jerking he farmers around just like the rest of us for years.

[AlabamaNomadRider]

Ethanol or pure gas costs $3.49 a gallone for the least expensive. We don't get any reduced price here in Alabama.

[ringadingh]

Sounds like its time for an ethanol revolt.

[AlabamaNomadRider]

I don't buy ethanol here locally as there are a few stations that sell pure gas. I buy at those stations and like I said I pay the same for either one.

[ponch]

Buying gasohol is considered a civic duty in Iowa. I am sure there is a warrant out for his arrest here in Iowa. Anything for the Farmers and children.

[cnc]

Is this finally some one in government admitting that maybe ethanol is not such a great fix all plan, that's refreshing.

[BudMan]

In all the talk of raising the debt ceiling and cutting spending,
Sen Coburn is the first one I've heard mention the obvious.
The U.S. governments interest in ethanol is keeping corn prices high.
Corn isn't sugar and will never be a viable fuel source.

[brote]

I've always said "Corn squeezin's is for drinking" so lets keep it out of our GAS. Can't get pure gas around Atlanta so the government must be involved.

[usranger74]

Originally Posted by AlabamaNomadRider

I don't buy ethanol here locally as there are a few stations that sell pure gas. I buy at those stations and like I said I pay the same for either one.

Gene - you are buying ethanol if you are paying fed. taxes. Every gal made cost "US" $1.78/gal before it gets added to gas :(" title="" border="0"/>

[AlabamaNomadRider]

I may be buying it but I'm not running it in the Nomad. At least the pumps say that.

[ponch]

Originally Posted by BudMan

In all the talk of raising the debt ceiling and cutting spending,
Sen Coburn is the first one I've heard mention the obvious.
The U.S. governments interest in ethanol is keeping corn prices high.
Corn isn't sugar and will never be a viable fuel source.

Obviously you've never had Iowa sweet corn. It's like eating a candy bar. ;)

[BudMan]

Originally Posted by ponch

Obviously you've never had Iowa sweet corn. It's like eating a candy bar. ;)

[glwilson]

I'll agree on good Iowa, Illinois sweet-corn tasting like candy... can't wait until it starts being available... which is soon. ;)

Also I'll bet ethanol is affecting the price of my bourbon; since a minimum of 50% corn usage as the grain is required by law!!!

Most distillers use 70%+ corn as their grain... so that might even be jacking-up the price even more!!!!

Be gone with ethanol I say!!!!

[ponch]

Originally Posted by glwilson

I'll agree on good Iowa, Illinois sweet-corn tasting like candy... can't wait until it starts being available... which is soon. ;)

Also I'll bet ethanol is affecting the price of my bourbon; since a minimum of 50% corn usage as the grain is required by law!!!

Most distillers use 70%+ corn as their grain... so that might even be jacking-up the price even more!!!!

Be gone with ethanol I say!!!!

We've had our sweet corn for a week, it's in now.