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39% of all corn produced in the U.S. goes to ethanol production   (Source: washingtonexaminer.com)
House to vote next

Lawmakers in Washington are working hard to write and pass laws that would have fuel efficiency standards in the U.S. changing drastically in coming years. While some in Washington support the new standards for vehicle efficiency, others oppose the standards. Along with mandating better fuel economy across a carmakers fleet, Washington is also seeing green and renewable fuel alternatives for vehicles.

In the U.S., ethanol has been added into the fuel we run in vehicles for years. Ethanol is as high as 10% in fuels today and some that are against ethanol, which is derived from corn, claim that the biofuel is increasing the price of some food items in America. A report published by the GAO claims that the use of ethanol has driven the cost of some food items up as much as 20%.

With all of Washington in cost cutting mode in an effort to shore up the federal budget lawmakers are looking at everywhere money can be saved. One place that some in the Senate want to save money is by repealing the subsidy on ethanol. The Senate voted Thursday 73-27 to end a $0.45 per gallon tax credit on ethanol-blended gasoline starting on July 1. According to those that support the repeal, the subsidy cost taxpayers $5.6 billion last year.

Growth Energy, and ethanol association, CEO Tom Buis said, "The Senate missed an enormous opportunity to take real action on deficit reduction and energy policy when it failed to put oil subsidies and giveaways to the same test as ethanol."

On the other side of the coin, Kate McMahon coordinator of biofuels campaigns for Friends of the Earth said, "Senators scored a win for the public and for the environment by voting to end this $6 billion giveaway." She continued saying, "[the Senate delivered a message] that the ethanol industry's days of living high off the taxpayers' hog have come to an end."

The effort to end the ethanol subsidy now goes to the House for voting. White House spokesman Jay Carney says that the Obama administration supports a reduction in the ethanol subsidy, but does not support a full repeal. Some claim that 39% of the corn produced in the U.S. is currently going into fuel tanks. With the costs to reach the proposed 62mpg regulations for fuel economy reaching nearly $10,000, some automakers are calling for the removal of ethanol from gasoline. Ethanol is renewable and greener than petroleum fuel, but reduces fuel economy.


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RE: Duh
By flatfour on 6/17/2011 7:57:10 PM , Rating: 1
Its not just the "granola munching hippies" that buy hybrids. If congress is giving tax credits to hybrid buyers, even your average Joe can purchase them, get the tax savings, without having to drink the Koolaid. I know plenty of Prius drivers that bought them on on the recommendation of their accountants. I'm not saying that this is good policy, but merely reality.


RE: Duh
By tng on 6/18/2011 8:54:48 AM , Rating: 2
quote:
If congress is giving tax credits to hybrid buyers, even your average Joe can purchase them, get the tax savings, without having to drink the Koolaid.
Really, are you kidding?

Not sure if you think congress giving my money out to the "Average Joe" to buy a hybrid is a good idea or not. It is never a good idea for government to subsidize one thing over another. If JSP can't a afford a hybrid then he should stop spending money on other things so he can save for one.

quote:
I know plenty of Prius drivers that bought them on on the recommendation of their accountants.
Lets face it, in allot of cases the stereotype is true. My accountant has a 98 Camry that she thinks is sexy.


RE: Duh
By flatfour on 6/18/2011 3:13:03 PM , Rating: 3
I never said subsidies were a good idea, just that if they're available, people will take them. You can't demonize someone for taking advantage of a program. And for some, saving money at the pump will override concerns about where all the rare earth metals are coming from and what types of pollutants they put out

But yes, many have in fact drank the Koolaid. I was mostly just playing devil's advocate. What do I know though, I drive a sports car that gets <25mpg.


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