Friday, December 26, 2008

Government-created Ethanol Industry now Begging for their Bailout!

Already gouging taxpayers for $25 billion in handout subsidies, the ethanol industry lobbying arm - the Renewable Energy Association - is now begging the government for another billion in short-term credit, along with up to $50 billion in loan guarantees to expand the diastrous industry.

In an even more evil move, the association is asking for the government to lower the existing 10 percent limit on how much ethanol can be added to fuel for regular cars and trucks. That has the potential to wreak havoc on the engines of the car, as those mixtures are unproven.

So what we have is a false market created by the government because it's great to get votes and give the illusion that jobs are being created. So now the non-market business needs to be bailed out in order to keep our politicians from looking like the uniformed, dangerous people they're increasingly becoming.

Monday, December 22, 2008

More Reasons to Abandon Ethanol Subsidies

USDA Secretary Pick Vilsack Faces Ethanol Decision

“We’re also hopeful that Governor Vilsack will take an objective look at the volatility corn ethanol has imposed on the food and fuel system, and its adverse impact on the environment,” said Ken Cook, the president of Environmental Working Group, an environmental advocacy organization in Washington.

Bentley plan to cut CO2 with ethanol comes under fire

"The weight of the evidence against ethanol as a net reducer of greenhouse gas emissions vis-À-vis gasoline is by now quite overwhelming."

Environmental Groups Oppose Ethanol Bailout in Stimulus Package

The Clean Air Task Force, Environmental Working Group, Friends of Earth, and the Network for New Energy Choices released a statement today saying that federal government subsidies and mandates for corn-based ethanol produce potentially catastrophic consequences to the environment, and have no payback to taxpayers in terms of alleviating global warming effects, providing for energy security, or even simply reducing the cost of driving.

Thursday, December 11, 2008

Many Reasons to Drop the Ethanol Debacle

"New" ethanol to face crunch time under a Chu DOE

"Steven Chu, Obama's pick for the head of the Department of Energy, is a steadfast supporter of next-generation biofuels such as cellulosic ethanol, expected to be made from the tough woody bits of crops like grasses and fast growing trees as well as plant and timber waste.

"But next-generation biofuels are no quick fix. They are more expensive than gasoline, a problem that was tricky when oil hit $147 a barrel over the summer, but even more difficult now as it trades under $50 a barrel."

Why the Ethanol Mandate is a Joke and a Crime

Shawn McCambridge, senior grains analyst for Prudential-Bache, said capacity could dip below the mandate because the economy will make politicians unwilling to enforce penalties or push for more ethanol at the expense of consumers.

NSW Farmers question lift in mandatory ethanol targets

The NSW Farmers’ Association supports the availability of ethanol blended petrol at service stations throughout NSW, but it believes that this should be determined by market forces, not Government intervention by mandating the percentage of ethanol in petrol.

The Real Future of Ethanol

A state fund that helps North Dakota ethanol plants is expected to run out of money this month.

Ethanol isn't the Answer

Going to ethanol was a great decision for the Brazilians – they got off of foreign oil and, as luck would have it, created a greener fuel which only became important recently. But that doesn’t mean that we can do the same. It’s good that we began to look at other countries to see what they do well, but we need to understand differences between countries, too. Here, we should have known that ethanol wasn’t right for us. If we want energy independence and a greener fuel, we need to look at what else America has to offer.

Ethanol the Killer

Governments worldwide are tempering their drive for biofuel use after a surge in production increased land clearance in Latin America and Asia and reduced food production in some regions. In July, the Organization for Economic Cooperation and Development estimated wheat and corn prices may rise as much as 7 percent in the next decade because of greater U.S. and European production of alternative fuels.

Ethanol is Worst Biofuel Option

Ethanol-based biofuels will irreversibly damage human health, wildlife, water supply and land use than current fossil fuels ... warns an expert.

Unrealistic Ethanol Subsidies Should be Dropped in Minnesota

With their darling biofuel project - corn-based ethanol - continuing to prove a disaster, many states are having to reevaluate their commitment and cut back on funding.

Minnesota is one of those states, as Governor Tim Pawlenty will have to make a key decision on how much the state is able to commit to with a projected $5.2 billion budget deficit facing him.

The problem for Minnesota is they hailed the dubious industry as a savior of Minnesota farmers and could face a huge backlash as that assertion and ploy comes back to haunt them.

Last year Minnesota paid out above $15 million to ethanol plants in subsidies, and its going to be hard to justify continuing that in the current economic climate.

All states need to take a hard look at the problem and get rid of this subsidy and misguided effort to produce a biofuel that experts all around say isn't viable and does more harm than good.