"Coalition for E85" Wants a New Tax Break for Ethanol
October 18, 2011 1:01 PM
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E85 will be much more expensive than normal fuels without a new tax credit according to the coalition
The tax rebate on ethanol fuels is set to expire at the end of this year. This will vanquish the tax credit that allowed ethanol producers in the U.S. to export as much or more of the fuel to other countries than was used in American fuel tanks. Steven Rattner stated in a piece written for the
, “Because of the subsidy, ethanol became cheaper than gasoline, and so we sent 397 million gallons of ethanol overseas last year. America is simultaneously importing costly foreign oil and subsidizing the export of its equivalent.”
exporting of ethanol
is one of the reasons the tax break on ethanol is ending.
With the deadline looming for the tax credit, a coalition is forming to get federal tax law amended to allow E85 to get a tax cut. The new group will be called the Coalition for E85 and it is specific in that it isn't out to get the tax credit back for E10. The coalition will let that tax expire with no fight from its members, but it wants the E85 blend to gain a new tax cut or the coalition warns the days of E85 might be numbered.
The blenders that make E10 fuel that is in wide use, and is a mix of 10% ethanol and 90% unleaded are getting a 4.5-cent-per-gallon tax credit. E85 is getting a credit of 38.25 cents per gallon under the Volumetric Ethanol Excise Tax Credit or VEECT. This is the tax that expires in December.
What the coalition is seeking is a change that would allow the E85 blend to receive the Alternative Fuel Credit (AFC). E85 was excluded from the AFC originally to keep it from being able to qualify for both the VEECT and the AFC credits. With the VEETC being discontinued, the makers want E85 to now get the AFC credit to allow the E85 fuel to maintain closer price parity with normal fuels for consumers that drive Flexi Fuel Vehicles. Flexi Fuel Vehicles or FFVs are able to burn regular gasoline and E85.
The coalition is trying to raise $75,000 to hire a Washington lobby group to speak on its behalf.
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10/18/2011 2:35:11 PM
Shocking (can you sense my sarcasm?)
The energy content (per unit volume) of ethanol is less than that of pure gasoline.
Ethanol: ~75,000 BTU/gal
Gasoline: ~115,000 BTU/gal or ~150% that of ethanol
E10 is essentially diluted gasoline. Since cutting gas with water is problematic, it's cut with ethanol. The effect is similar....you're paying
The idea that you can move a vehicle, of some mass, from point A to point B, using a fuel with a lower energy content per unit volume than gasoline, by filling a tank of a given, known volume with said alternative fuel, and expect to achieve the same fuel economy (measured in miles per
) is absolutely absurd.
you should expect to see a lower fuel economy. Energy content
is less, therefore
fuel is required to do the same amount of work (same vehicle, same mass, same distance...same work).
In conclusion, if you want the best mileage (per unit volume of fuel), you need to fill up with 100% gasoline. Not this E10 (or E15 now) you find being sold as "gasoline."
This fraud has be perpetuated on the public at large and is defensible only because the pumps dispensing this gasoline/ethanol "blend" usually display a sticker noting that the gasoline you are pumping may contain "up to 10% ethanol" (etc).
This is akin to adding 10% by volume water to a gallon a milk, charging more (or the same), and then continuing to claim by packaging that you are selling the contents as "milk." No, you're selling diluted milk.
10/18/2011 9:13:48 PM
But its green and come from the plants, cant you see how green and friendly its??...
E85 should give ~25% less mileage on a Flex vehicle.
E10 less than 10% on normal vehicles.
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