E85 Boondoggle of the Day: MO Gov's Tax Creditfest
KY3.com reports that that Missouri Governor Matt Blunt is so deep inside the ethanol industry's pockets that he's using the lint for a pillow [paraphrasing]. The Gov wants The Show Me State's legislature to craft some new E85 pork barrel filler: $2m worth of tax credits for gas stations to re-equip with E85 pumps. As we've heard that it takes $200k to convert a gas station to E85itude, Blunt is either trying to fly under the radar or doing some symbolic showboating to appease the ethanol lobby. But wait, there's more! "Another of the governor’s proposals is for state income tax credits for people who buy E85. The credits would be 25 cents per gallon in the first year, 20 cents per gallon in the second and third years, and 15 cents per gallon after that, with a maximum of $500 per taxpayer per year." Blunt reckons that little deal would save Missouri's theoretical E85 [only] users an average of 70 cents per gallon over regular gas. Which is just as well, considering that the corn juice is some 28.5 percent less efficient than non-E85 gas.
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Better inside the ethanol industry pockets than the oil industry's pockets like our current illustrious President and Vice President. They have cost the lives of nearly 4000 brave soldiers over nothing but lies in an attempt to steal Iraqi oil. Gov. Blunt sounds like a true American hero to me. He understands the difficult situation we are facing with Peak Oil and is trying to do something about it. More power to him.
@97escort: Just because our current foreign policy and dependence on oil leave a lot to be desired does not mean that Gov. Blunt's plan is a good one. For one thing, you don't need crop land to grow saw grass, but if saw grass is more profitable to grow than corn (or whatever), what would you choose to grow on your crop land? Remember, one side being wrong doesn't automatically make the other side right.
Too bad he is not offering tax incentives for coverting our cars to run on E85. I have converted mine from http://www.change2E85.com. But I'll take tax incentives for buying E85 as I drive a ton. Also Ethanol is 28.5% less efficient than gas only at atmospheric pressure. When put under compression like in an engine, it becomes more efficient and your fuel loss is only 5-15% less.
In Missouri all grades of gas (except premium) are required to have 10% ethanol. This will lower your mpg 1-2 mpg, oh and it costs the same.