TAKE AWAY ALL SUBSIDY, AND ETHANOL COSTS ABOUT $1.90 PER GALLON TO MAKE AT JUNE, 2009 PRICES FOR COMMODITIES. THIS INCLUDES ALL INPUT COSTS FOR TRANSPORT, AND INGREDIENTS SUCH AS FERTILIZER, YEASTS, AND CLEANING SUPPLIES.
Great! When can we remove the subsidy crutch that amounts to some 5 BILLION dollars annually (Blender's Tax Credit), Pro-rata share of corn subsidies (about $306 million annually), Tax Exemptions for Ethanol Plant construction, Ethanol Enery Investment Tax Credit, Ethanol ACRS Accelerated Depreciation, and Federal and Local subsidies from Excise Tax Exemptions (about 900 million annually). These pieces of pork have been around for almost 30 years now in some form, and after the Bush Administrations Energy Policy Act of 2005, it has gone nowhere but UP. I an not accusing the Ethanol industry for rising food costs. There were other factors like global weather and production energy costs that entered into that. Oh, and lets also not forget the grants and low/no interest loans: | |
| Clinton-Southeast Joint Venture (GA) $1.85M Guarante Defaulted |
| Idaho Fuels (ID) $0.475M, Guarantee Defaulted |
| Farm Fuel Production $3.8M Guarantee Defaulted |
| Kentucky Agricultural Energy Co. (KY) $35.2M Guarantee, 11/84 Defaulted |
| American Fuel Technologies (MD) $2.5M Guarantee Loan repaid |
| ADC-1 (NE) $20M Guarantee, 10/82 Sold at no loss. |
| Boucher Rural Products (NE) $0.28M Guarantee Defaulted |
| Dawn Enterprises (ND) $20M Guarantee Defaulted |
| South Point Ethanol (OH) $32M Guarantee, 5/81 Repayments were current as of source reports. |
| Carolina Alcohol (SC) $0.495M Guarantee Defaulted |
| Sepco, Inc. (SD) $0.35M Guarantee Defaulted |
| Coburn Enterprises (SD) $0.75M Guarantee Defaulted |
| Elgin Alcohol Fuels, Inc. (IA) $2.6M Guarantee Funds never disbursed. |
| High Plains Corp. (KS) $20M Guarantee Funds never disbursed. |
| Alchem, Ltd. (ND) $8.4M Guarantee, 6/87 Repayments were current as of source reports. |
Source = 2006, International Institute for Sustainable Development
Growth Energy got their wish, and we now have mandates for Ethanol in automotive fuels. The result, when combined with the subsidies means we are now paying more for less -- about 11,000 BTU's less per 20 gallon tank. Ethanol subsidies are more than twice those of the next highest subisdized energy segment-- Nuclear Power. The time has come when we should admit the true cost of Ethanol Production. If it is a buck, ninety to delivery as indicated, it can stand on its own with $3.00 gas even with a lower energy content -- and without the subsidies.
MIS-INFORMATION HERE. ETHANOL IS HARD ON ( SLOWLY DISSOLVES ) NATURAL RUBBER, NATURAL CORK, AND FIBERGLASS. ALSO, NOT GREAT FOR LEAD. IT WON'T EAT A HOLE IN LEAD ( IN YOUR LIFETIME ) BUT WILL ADD LEAD TO EMISSIONS IF PRESENT IN THE METAL COMPONENTS OF YOUR CAR ( UNLIKELY )
Both AOPA and EAA are lobbying Congress to exempt aviation gasoline from two proposed amendments to the Clean Air Act. The bills propose making it mandatory for all motor vehicle gasolines (with a few exceptions for collector cars) to contain at least 10 percent "renewable fuels" by 2010. About the only viable alternative fuel now available is ethanol fermented from corn and it gives airplanes a major hangover. Separate studies by EAA, the FAA and Cessna have conclusively determined that ethanol damages everything from engines to fuel systems in airplanes, but the bills, as they stand now, would require the 10 percent quota for avgas. The groups are also hoping to get some relief for those with mogas STCs. In addition to exempting avgas, the groups want Congress to allow premium automotive fuel to be made without ethanol. The addition of ethanol invalidates the mogas STCs. Several states have seen the wisdom of having some alcohol-free fuel available, not only for airplanes but for boats and recreational products, and have exempted premium fuel from their own 10-percent rules.
source =
http://www.avweb.com/avwebflash/lead..._192687-1.html
RFB