Undoing America's Ethanol Mistake

IBD ^ | April 25, 2008 | SEN. KAY BAILEY HUTCHISON

[Kaslin]

The Nobel Prize-winning economist Milton Friedman once said, "One of the great mistakes is to judge policies and programs by their intentions rather than their results."

When Congress passed legislation to greatly expand America's commitment to biofuels, it intended to create energy independence and protect the environment.

But the results have been quite different. America remains equally dependent on foreign sources of energy, and new evidence suggests that ethanol is causing great harm to the environment.

In recent weeks, the correlation between government biofuel mandates and rapidly rising food prices has become undeniable. At a time when the U.S. economy is facing recession, Congress needs to reform its "food-to-fuel" policies and look at alternatives to strengthen energy security.

On Dec. 19, 2007, President Bush signed into law the Energy Independence and Security Act. This legislation had several positive features, including higher fuel standards for cars and greater investment in renewable energies such as solar power.

However, the bill required a huge spike in the biofuel production requirement, from 7.5 billion gallons in 2012 to 36 billion in 2022.

This was a well-intentioned measure, but it was also impractical. Nearly all our domestic corn and grain supply is needed to meet this mandate, robbing the world of one of its most important sources of food.

We are already seeing the ill effects of this measure. Last year, 25% of America's corn crop was diverted to produce ethanol. In 2008, that number will grow to 30%-35%, and it will soar even higher in the years to come.

[USFRIENDINVICTORIA]

Using food for fuel is such a horrible idea; I'm surprised that there don't seem to be any wild conspiracy theories about it. For instance, if the U.S. wanted to retaliate against OPEC nations — most of them food importers — what better way than to burn off food to drive up prices? Maybe the 9/11 “Truthers” should get on this. Al Gore would have to feature prominently in any conspiracy tale.

[dhs12345]

I have been saying all along that ethanol wouldn’t help. Way too many resources are required.

I didn’t expect that the food industry and production would be affected as much as it is.

There is supposed to be a shortage of wheat in the future. Farmers have been switching from wheat to corn.

[manic4organic]

"One of the great mistakes is to judge policies and programs by their intentions rather than their results."

Liberals defined.

[Shermy]

On Dec. 19, 2007, President Bush signed into law the Energy Independence and Security Act. This legislation had several positive features, including higher fuel standards for cars and greater investment in renewable energies such as solar power.

However, the bill required a huge spike in the biofuel production requirement, from 7.5 billion gallons in 2012 to 36 billion in 2022.”

2007 and food costs zoom in 2008. Better tell the ‘bots who think this was Al Gore’s fault from 1994 or so.

[JBCiejka]

I am dying to hear what they will say when we have a drought, tornadoes, hurricanes, earthquakes, firestorms, locusts,etc. How do you rotate crops, if it is the only thing you grow? What will happen when there is no corn for fuel or food?

[steelyourfaith]

ping

[Western Phil]

A lot of this is bs. Just a year or two ago there was an excess of corn & it was not economically feasible to raise wheat. There have been excess of corn and wheat almost continuously since WWI. The excess of corn & its associated low price along with its easy mobility, made it very attractive for ethanol production.

If you fly over the high plains is obvious that many of the center pivot irrigation systems are no longer in use. Some of this may be due to drying up of the aquifers, but much is due to the cost of pumping the water is higher than the price the farmer could get from any production of the land. Wheat & corn are not usually interchangeable. Dry land corn in wheat country is always a gamble. A major input to the high price of wheat has been the poor crop in Austrailia this year. Has nothing to do with ethanol production.

If the price of either stays high the farmers will be able to afford greater production efforts. If the price comes down, they will all go bankrupt.

[yefragetuwrabrumuy]

Open question. If they’re making this vast amount of ethanol, then where are they storing it?

Every drop of new production needs new storage, so where is it being stored? Even if all of it is being added to gasoline across the country, the “ethanol pipeline” has to be radically increased.

Is it going direct from where it is being manufactured to gas refineries? We’re talking in the BILLIONS of gallons, here.

I truly doubt it is being shipped by train or truck. There is just too much of it for that. So that means pipelines and storage tanks.

But where?

[I got the rope]

Bookmarking.

[Ben Ficklin]

The ultimate goal was/is cellulosic alcohol.

So, the question is, is cellulosic alcohol do-able and does it make sense to build an alcohol infrastructure based on corn that can be converted to cellulosic.

[Minn]

Wow, Kay! I've been disappointed in some of what I've seen from you, but this is refreshing. I didn't notice the author was a politician (or I might not have read it) until the "I'm introducing legislation..." part.

There's going to be a ton of lame propaganda and pressure on this from those with ethanol interests. If you were from Iowa, you would have just sacrificed your job by writing this. Nice to see the whole establishment isn't completely in the tank, only the vast majority.

[Western Phil]

“I am dying to hear what they will say when we have a drought, tornadoes, hurricanes, earthquakes, firestorms, locusts,etc”

The last two years have not been particularily favorable weather wise for corn here in east central Illinois - both years it was quite dry during the growing season. Yet yields per acre have been at record levels. I think it must be due to global warming although both summers were cooler than normal.

[ditch bank guru]

have you researched the wheat prices lately...has been up to 25 dollars a bushel a couple weks ago...normal is around 5 dollars

[ditch bank guru]

“So, the question is, is cellulosic alcohol do-able and does it make sense to build an alcohol infrastructure based on corn that can be converted to cellulosic.”

in believe its all trucked..i have heard that alcohol doesnt travel well in a pipe

[lesser_satan]

I truly doubt it is being shipped by train or truck. There is just too much of it for that. So that means pipelines and storage tanks.

From what I've heard, it has to be shipped by train or truck, as it has condensation problems in pipelines. On the same note, I boat on the Mississippi a lot, and have noticed a huge increase in liquid-carrying barges with the flammable liquids placards all over them in the past decade. I've been wondering if they contain ethanol.

[JBCiejka]

I am sorry that for some reason, i do not accept global warming as an additive to the problem. If that is even a possiblity, than how can you plan to survive a crop, if global warming may destroy it? I think global warming started when the ice age ended. If there really is global warming.

There are other reasons in natural weather that can destroy a crop, and you still have nothing. At least we know that for now, there is oil in the ground and weather has no particular affect on it.

[steel_resolve]

to turn the conspiracy worm a bit further, Saudi Arabia knows what we are trying to accomplish and are restricting supply to keep prices high - i.e. a punishment for our food to fuel plan.

[bigjackattack]

I love the fact that we can use corn in place of oil, but the crude diet ain’t so great.

[Citizen Tom Paine]

Unintended consequences. When fools, with little or no scientific, engineering, or economic training attempt vast programs with half-vast ideas, bad things happen.

As was noted in the Iliad (around 850 BC give or take a few years) the citizens pay for the bad decisions of their Kings (not the Kings).