Public Policy







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ETHANOL

Overview

This summer's skyrocketing gas prices have dramatically demonstrated the danger of the United States' petroleum dependency. It's time for Congress to craft a national energy policy that promotes the use of renewable, domestic energy sources - including corn-based ethanol.

Ethanol is already being blended with gasoline, at levels of up to 10 percent, in many parts of the country. The benefits are clear.

  • Ethanol provides energy security. The United States currently imports more than 50 percent of its domestic petroleum consumption - and about 80 percent of the world's proven oil reserves are in the perennially unstable Middle East. Plus, the planet has only a finite supply of fossil fuels. But ethanol is a home-grown resource made from readily replaceable agricultural feedstocks such as corn.
  • Ethanol offers substantial environmental benefits. Ethanol contains 35 percent oxygen, which makes gasoline burn more cleanly. That's why the Clean Air Act requires the use of oxygenated gasoline to improve air quality in the nation's most polluted cities. But unlike the petroleum-based oxygenate MTBE, which is fouling drinking water supplies from Maine to California and posing substantial public health risks, ethanol is nontoxic and biodegradable.
  • Ethanol is affordable and abundant. According to the Renewable Fuels Association, ethanol was selling at a net cost of just 71 cents per gallon in June, compared to the $1.24 wholesale price for a gallon of gasoline. And ethanol supplies are the most plentiful in 20 years. The ethanol industry has broken monthly production records every month this year and is poised to set an all-time record for annual production.
  • Ethanol is good for farmers and rural America. Ethanol is the third-largest market for U.S. corn (after livestock feed and exports), currently consuming nearly 600 million bushels per year. This demand boosts farm income by about $3 billion annually. In addition, the production of value-added ethanol has sparked new capital investment and economic development in rural communities across America. Nearly one million farmers are owner-investors in cooperative, local ethanol production facilities.

Action Needed

The nation's corn growers call on Congress to craft a rational, sustainable national energy policy that increases the use of ethanol and other renewable fuels.

 



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