Ag Secretaries Ask Obama to Raise Ethanol Blend Limits
What's the ethanol industry to do when both consumers and the scientific community fail to recognize the benefits of corn-based fuel? Like most other industries of scale, the only thing left appears to be to lobby the government to push the product. After a glut of studies have indicated that ethanol might be worse for the environment than gas, the struggling ethanol industry has convinced Ag secretaries from 11 states to send a letter that appeals directly to President Obama. Current ethanol regulation caps gas-ethanol blends at 10%. Unless of course you're going with E85 (85% ethanol), and most cars aren't built to withstand its corrosive effects. The coalition of Ag secretaries are hoping that the government will boost corn sales by allowing a 15% or even 20% ethanol blend. In the letter to the President, the ethanol enthusiasts contend that ethanol reduces GHG, a claim that has been hotly disputed recently. Another primary justification for expanding ethanol, which garnered 66% of federal renewable energy subsidies in 2007, is that it would help fund research into more efficient means of ethanol production, like cellulosic ethanol.
[via AutoblogGreen]
Read the letter after the break.
Dear Mr. President:
We are writing to thank you for your strong support of renewable energy and respectfully request your continued leadership on this issue by encouraging the acceptance of ethanol blends beyond the current regulatory cap of 10 percent.
For more than 30 years, ethanol has had a positive impact on our economy. Clean, affordable, domestically produced ethanol has enhanced America's economy through job growth, increased domestic production and a larger tax base. In 2007 alone, the ethanol industry created more than 200,000 American jobs that cannot be exported or outsourced, while contributing $47.6 billion to our GDP and generating $4.6 billion in tax revenues.
Ethanol has environmental benefits as well. In addition to being completely biodegradable, ethanol has been shown to dramatically reduce tailpipe emissions. The U.S. Department of Energy estimates that 13 trillion tons of greenhouse gases were avoided in 2007 due to the use of biofuels. Researchers at the University of Nebraska-Lincoln recently announced that ethanol produced from corn can reduce GHG emissions by as much as 62 percent relative to gasoline. As we expand cellulosic ethanol production in the coming years, even greater GHG reductions will be realized.
The EPA's longstanding decision to limit the base blend of ethanol to 10 percent was based on 1970s science, antiquated fuel systems designs, and outdated technology. Conversely, countries like Brazil have successfully utilized blends between E20 and E100 for decades. The EPA implemented the E10 blend limit at a time when ethanol production capacity and conversion efficiency was a fraction of what it is today.
In the 21st century, ethanol offers a sustainable solution to our country's energy needs, while reducing our dependency on foreign oil and addressing the serious challenge of global climate change.
The federal government embraced this concept through passage of the Energy Independence and Security Act of 2007, which among other things, mandated 36 billion gallons of ethanol be blended into our domestic fuel supply by 2022. However, the current EPA regulatory cap of 10 percent ethanol hinders that opportunity. Simply put, there is a government rule contradicting a government law. Now is the time to move forward by increasing the base fuel blend to 15 or 20 percent ethanol.
As you know, the American ethanol industry is under considerable financial stress. Much of this pressure stems from the fact that ethanol, unlike oil, is held to less than 10 percent of the market. By moving beyond the 10 percent cap, we can improve domestic investment, stimulate our economy with green jobs, and enable our country to comply with the existing Renewable Fuels Standard.
Timing is critical. American ethanol production has nearly reached 10 percent saturation. We must move to a base blend of 15 or 20 percent in 2009 in order to continue growing this vital industry. By working together to promote domestic production and improve market access, we can continue to deliver a clean, renewable fuel that has a positive impact on our domestic economy.
Thank you for your leadership and support.
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