E85 Boondoggle of the Day: E20 To Save Industry?
The Departments of Energy and Agriculture have released a new Biofuel Action Plan, designed to guide U.S. policy towards biofuel development. As Green Car Congress reports, the plan mandates improved oversight over biofuel development, especially in the area of sustainability. More importantly, it confirms that the market for E10 ethanol blends will be saturated in the next few years. Of course, mandated ethanol production levels aren’t dropping to reflect this. As a result, federal agencies are testing E15 and E20 blends, in hopes of proliferating them to soak-up surplus, federally-subsidized ethanol. Meanwhile, the United Nations has a new report out too. “Policy interventions, especially in the form of subsidies and mandated blending of biofuels with fossil fuels, are driving the rush to liquid biofuels,” notes the UN’s State of Food and Agriculture report. “However, many of the measures being implemented by both developed and developing countries have high economic, social and environmental costs.”And will the ethanol industry please stop bleating-on about saving Americans 10 cents a gallon at the pumps? The feds are giving them a .50 a gallon “blender’s credit.” So I reckon it’s costing us– even those of us who don’t use it– .40 a gallon.
More by Edward Niedermeyer