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Corn is a preferred feedstock in ethanol production and supplied more
than 90 percent of the raw material used in 1992. Ethanol production creates new domestic markets for corn and adds four to six cents a bushel for each 100 million bushels used. (The amount used in 1992 was
responsible for a 16 to 24 cents gain in the price of corn.)
Better prices mean less reliance on government subsidy programs and more income and independence for farmers.
Economics and Politics
At present, it costs $.57 to $1.50 to produce one
gallon of ethanol. The price at the gas pump, however, reflects federal and state tax exemptions, loan guarantees, and other government subsidies.
Balancing the cost of these special tax incentives is a
significant reduction in farm subsidies and the generation of additional tax revenues. A 1985 study by Purdue University found that the use of 240 million bushels of corn by the ethanol industry saved U.S. taxpayers
more than $623 million in government farm program expenditures.
The fledgling oil industry began receiving federal support (subsidies) in 1916 to promote development of an energy industry. The oil industry
became very profitable decades ago, yet these promotional funds have become part of the industry's profit structure, rather than being reallocated to provide support to new energy sources and technologies as the
federal government originally intended. In 1984, the oil industry received over $8.5 billion in federal subsidies (which does not include $20 billion for military protection of Middle East petroleum sources). In
that same period, renewable energy industries-alcohol fuels, solar, wind, photovoltaics, wood, hydropower, and geothermal-received subsidies of only $1.7 billion. This imbalance conceals real commercial energy
costs, eliminates fair competition, and creates the illusion of lower energy prices, which leads to overconsumption.
Most experts agree that United States and worldwide petroleum supplies are being consumed
faster than new discoveries are being made and that during the first decade of the next century domestic oil supplies could be depleted. Conservation and renewable fuels (e.g., ethanol) can extend our domestic
supplies and reduce our imports. Since foreign oil imports are the largest component of our multi-billion dollar trade deficit, using ethanol can decrease our dependence on foreign oil imports and contribute to our
economic and national security.
Proponents and sponsors of legislation at both state and federal levels argue that ethanol production will offer solutions to the problems discussed above. Congress considered
legislation that mandates ethanol-gasoline blends averaging a minimum of 5 percent ethanol. Several farm states are considering similar mandates. Senator Joseph Biden has said, "It is a rare occasion when
pressing agricultural, energy, and environmental problems can all be addressed through a single program, but ethanol is in that enviable position" (Kelly-Harrison, p. 77).
Environment
According to
U.S. Environmental Protection Agency documents, the use of E10 blends will reduce carbon monoxide emissions by 25 percent or more. Used in the pure or neat form, ethanol reduces most forms of air pollution (carbon
monoxide and ozone emissions) coming from automobiles.
Ethanol doesn't pose the health and air pollution problems that lead does, yet it is both a fuel extender and an effective octane enhancer in gasoline.
Denver and other cities in Colorado, as well as Las Vegas and Phoenix, have alleviated serious carbon monoxide problems during the winter months by mandating the use of oxygenated fuels, one of which is the El0
blend. Other cities having difficulty meeting Clean Air Standards are considering similar measures.
EPA studies suggest that the use of E10 blends may slightly increase nitrogen oxide (NOx) emissions, but the
extent and effects of this are uncertain.
Ethics
Ethanol production does not divert food to fuel. Only the starch in corn is utilized in making ethanol. The protein-rich and edible oil coproducts of
ethanol production provide food for people and feed for livestock both here in the United States and overseas.
Illinois
Ethanol production is more profitable when the plants that produce it are
located in states producing surplus corn that also have good water and rail connections. Illinois meets those requirements.
Each 100 million bushels of corn used to produce ethanol creates 2,250 new rural jobs,
including construction, support and operations jobs, plus many more jobs in research, transportation, and exports.
Five plants in Illinois produce over 50 percent of all the ethanol produced in the United
States. Ethanol production is an important part of Illinois' and national strategies to stimulate the economy by creating jobs and expanding local tax bases.
Approximately 30 percent of the gasoline sold in Illinois contains 10 percent ethanol.
Testing
Over the past twelve years, 50 billion gallons of E10 blends (equivalent to one trillion miles driven) have
been used in the United States. Drivers who have used ethanol blends over a period of years report little or no change in vehicle performance.
A two-year, multi-vehicle study by Ashland Petroleum Company showed
no fuel-related maintenance or driveability problems with ethanol blended gasoline.
Texaco ran a fleet of company cars on El0 blend gasoline for the fleet's entire useful life. At the end of the study,
inspectors examined the engines and found them to be cleaner than those from other cars that had run on straight gasoline.
In 1975, Brazil adopted a national policy of replacing gasoline with alcohol fuel to the
maximum extent possible. By 1980, it had replaced 20 percent of its gasoline consumption with ethanol. Then, to increase alcohol use even further, the government reached agreements with automobile manufacturers
(e.g., Ford, Volkswagen) to produce car engines designed to run on "straight" alcohol. Now, most new cars manufactured for use in Brazil run on 100 percent ethanol.
Transportation
Ethanol is a
grain alcohol. Scientific testing shows that ten percent ethanol/gasoline (El0) blends can be used safely in existing car engines. It does not clog fuel injectors or carburetors. Some problems may result, however,
when other alcohols such as methanol or wood alcohol are used in excess of five percent. Don't confuse them with ethanol!
There have been some extensive public relations efforts to mislead the public with
slogans such as "No alcohol in our gas!" This kind of negative advertising aims to give the impression that there is something wrong with fuel which does contain alcohol. Studies show, however, that
ethanol blends have no negative effects on engines or their performance. In fact, ethanol tends to improve engine performance and eliminate pinging and engine run-on.
Use of leaded gasoline may result in the
formation of corrosive salts which foul spark plugs and corrode exhaust systems. Over a period of time, regular gasoline will leave a deposit of varnish-like residue in the fuel system. El0 blends with detergent
help clean out these deposits.
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