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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 mindless1 on 6/26/2011 7:02:49 PM , Rating: 2
So you think most people who are financially well off drive little econocars, and most with nice cars live in small cheap apartments?

That... that's some really screwed up logic you have going on, before even considering that most don't drive 40-70 miles in stop and go traffic to get to work.

Let's get back to reality. The reality is most people buy mid to nicer cars so they can drive them, ESPECIALLY so they don't have to be crammed like a sardine into a piece of junk for hours a day, unless they are too impoverished to afford the gasoline which is not much.

Think about it. Even if you get a low 20MPG on a 40 mi commute, versus 30MPG with the econobox car, that's only $2.50 or so difference in gas, pocket change to someone making six figures.

The fact is, "most" people drive the cars with the highest sales rate in the last few years. Imagine that!


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