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Ethanol is making a point that Big Oil is receiving subsidies and ethanol isn't

Ethanol is holding one huge, sarcastic birthday party for Big Oil in celebration of its oldest subsidy enacted 100 years ago.

The 100th birthday for oil's oldest subsidy -- which began in 1913 -- will be prepared by the Iowa Renewable Fuels Association (IRFA), which promotes Iowa ethanol and biodiesel growth, and the American Coalition for Ethanol (ACE), which encourages the production and use of ethanol.

“And it dawned on us a few months ago that this is in fact the 100th birthday for oil subsidies and this calls for a party, and I think people can assume our tongues are firmly planted in our cheeks when we say we’re going to celebrate that fact,” said Monte Shaw, executive director of IRFA.

Why is the ethanol industry doing this? According to Shaw, the ethanol blenders tax credit expired in 2011, and ethanol has been forced to continue on without any help. However, Big Oil, which is already the most profitable industry in the world, still receives subsidies. The oldest, continuous subsidy was enacted in 1913, which is the topic of the birthday party.

“What we’re saying is, they’re there," said Shaw. "And we’re sick and tired of members of Congress who don’t know any better or don’t want to know any better, saying, oh, why do you need the RFS?  Why do you this, why do you need that? Can’t you just compete on a level playing field? When the fact of the matter is, our competition has had 100 years of subsidization. They’ve had nearly 40 years of a petroleum mandate written into federal law that says unless you drive a flex-fuel vehicle, you will purchase gasoline with a minimum amount of petroleum (85% percent of petroleum). The playing field is overwhelmingly tilted to the oil industry and that has got to be a part of all discussions around the RFS."

The RFS is the Renewable Fuel Standard, which is a U.S. federal program that requires transportation fuel to have a certain amount of renewable fuels when sold in the U.S.

The birthday party, called "Century of Subsidies," will be held on Thursday, March 14, 2013 from 2:30 p.m. to 3:30 p.m. at 430 Dirksen Senate Office Building in Washington DC.

There will be cake.


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RE: :p
By inperfectdarkness on 3/15/2013 12:40:07 PM , Rating: 2
I maintain that regardless of how the food prices in the market fluctuate, until ALL farm subsidies are eliminated, the prices are NOT high enough.

I also believe that the USA has sufficient crop-land to produce ethanol-yield crops without negatively impacting our food supply. Until we have proof-positive that we've reached critical mass on production and are now negatively impacting food yields, I submit that we are well withing rational limits to pursue increased ethanol crops.

Granted, reclaimed mass biofuel & ethanol will be the future, in my opinion. What I dislike is someone arbitrarily handcuffing our capabilities because of some phantom consequence.

I see the opposition to growing ethanol crops (in a time of abundant production capability for food crops) as misguided as legislation prohibiting the drilling of oil within our own territory.

There's a lot more to a fuel than just its raw BTU's. Crop ethanol is primarily converted solar energy--the ultimate source for all harnessed energy here on earth. When you take into account the renewability of flora vs. fossil fuels, "net energy cost" starts to mean very little.

Furthermore, there is a myriad of data from automotive tuners proving that ethanol is a far superior fuel in our existing internal combustion engines--both due to octane & burn characteristics. e85 is literally cheap race gas. And just like race-gas, you need to modify your compression/boost to take advantage of that fuel, or it's simply wasting energy (like putting 93 octane in a vehicle designed for 87--it does NOTHING).

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