By Rick Tolman
Chief Executive Officer, National Corn Growers Association
Our friends in the ethanol industry have put forward a petition to the U.S. Environmental Protection Agency to allow for the restriction on ethanol blends in gasoline to be raised from 10 percent to 15 percent. A very impressive array of scientific data and information has gone forward with that request and the EPA has opened a 30-day comment period that runs through May 21.
We are excited about the response of corn growers and their friends, who have submitted thousands of individual comments to the EPA supporting this request.
If you have not done it yet, we ask you to please make your voice heard and get the facts out. Write to the EPA today and show your support for raising the regulatory cap to allow blending up to 15 percent. Click here to do it now.
The United States started its efforts to build a biofuels industry to offset our growing dependence on foreign oil, to help keep the billions of dollars being spent on oil in the United States and to help reduce the environmental degradation from fossil fuels. Today’s ethanol industry meets all of those objectives and is getting stronger and stronger in doing that.
Any change in our transportation fueling system will require systemic change across a number of industrial sectors. Ethanol is the easiest, least disruptive, most cost-effective, most sustainable, and the most timely solution. It is here and now.
And yet, our opponents on this issue are likely to submit thousands of comments in opposition because the petroleum industry and its allies have opened their deeper wallets and mounted a clever and massive campaign to stop biofuels expansion at any cost.
They feel threatened by ethanol even though it’s better for:
• our environment than gasoline,
• U.S. security by reducing reliance on foreign imports from countries who aren’t really our friends, and
• our U.S. economy because it provides thousands of jobs and keeps Americans working with the prospect of adding thousands more.
Why? Perhaps this chart answers that question. In short, Big Oil wants to preserve the 90 percent oil mandate that we have now and protect the oil and gas industry.
Let’s take a look at the key arguments that opponents of biofuels continually turn to.
Myth: “The biofuels industry is trying to mandate more ethanol.”
Fact: In fact, the application for a waiver does not require a mandate. This is an effort to allow the industry to move beyond the artificial 10 percent cap. This does not require more ethanol, it would allow more ethanol to be blended into conventional gasoline on a voluntary basis. Which in turn would help to reduce our dependence on foreign oil.
Myth: “Higher ethanol blends can cause problems for small engines and marine engines.”
Fact: This reminds me of times past when the ethanol industry was in its infancy and was blamed by many mechanics for every ill that occurred to an automobile. For a time, one could think that all autos were going to instantly stop because of a 10 percent or less ethanol blend. Some in the boat industry and small engine industry are trying to head public opinion down that same path. Fortunately, we have a real life example to look at regarding the impact of higher blends on small and marine engines. Fueling stations in Brazil sell only gasoline blended with ethanol or 100 percent ethanol. In Brazil, the current required blending level of ethanol into conventional gasoline is 25 percent. Boats, motorcycles, lawn mowers, chain saws and the like all operate on a fuel that is blended at 25 percent ethanol or above in Brazil. There have been no massive engine or consumer safety issues, nor has it put the industry in demise.
Myth: “Higher blends of ethanol will damage U.S. autos.”
Fact: Once again Brazil is a real laboratory to dispute this myth. Pure gasoline is not sold for vehicle use in Brazil. Twelve companies from around the world manufacture flex-fuel vehicles in Brazil, including the U.S. “Big Three.” This is certainly something that could be done here in the U.S and can be done without great cost to consumers and with many benefits. Just this month the top four automakers in Brazil – GM, Ford, Fiat and Volkswagen – announced that together they will distribute 2 million free booklets explaining the benefits of ethanol for consumers who buy their flex-fuel cars in Brazil. These four automakers account for 80 percent of the auto market in Brazil.
Myth: “Higher blends will lead to higher food prices.”
Fact: This argument has been factually disputed time and again. There is ample data and analysis to prove this is simply untrue, ethanol has little to no effect on food prices. Most telling and most convincing was the Congressional Budget Office report that was released in April. Corn and ethanol accounted for less than one percent of the rise in food prices over the study period; petroleum and labor and other factors accounted for 85 to 90 percent. The fact is, we have a growing supply of corn due to yield increase and productivity and there is no challenge for U.S. corn producers to meet domestic and world demand for food and feed and still make a significant contribution to biofuels. Corn Growers will continue to meet the demand for feed, fuel and fiber in an economical and environmentally sustainable manner.
Myth: “Ethanol will raise greenhouse gas emissions.”
Fact: It is ironic that the oil industry is pushing this claim. The EPA released its inventory of greenhouse gas emissions and placed the vast majority of the problem at the feet of the fossil fuel industry. In January, the most comprehensive and most current report to date on ethanol and greenhouse gas emissions indicated that corn ethanol reduced greenhouse gas emissions by up to 59 percent as compared to gasoline.
Myth: “Ethanol cannot compete without subsidies.”
Fact: In our opinion, the ethanol industry can and would compete in the energy complex without subsidy if the rest of the industry were not subsidized and if there was equivalent market access. Today, consumers cannot easily choose between ethanol or gasoline or blends. Almost our entire consumer vehicle fuel delivery system is controlled by the oil industry, from blending to distribution to retail. Ethanol must be accessed through a petroleum-dominated system and right now, we are forced to use 90 percent or more gasoline in most cases. Once again, Brazil offers a perfect example. All fueling stations in Brazil sell either 100 percent ethanol or a gas/ethanol blend of 75/25 percent. Virtually all new vehicles sold in Brazil are flex-fuel, meaning that they are able to operate on ethanol or gasoline or any combination in between. Consumers have choice. Ethanol competes head to head with gasoline and consumers have the right to choose. If we had a similar system here, there would be no need for subsidy.
Myth: “Higher blends of ethanol will damage fuel pumps.”
Fact: In late February 2009, Underwriters Laboratories approved the use of existing gas pumps for fuel that is up to 15 percent ethanol. After significant research, UL determined there is no significant incremental risk of damage, or safety concerns, between E10 and E15. This is a key certification of fuel delivery systems during the pursuit of higher blends.
Those wanting to preserve our petroleum monopoly have flooded the media with misinformation and stirred up and funded a range of surrogates that are working to oppose the growth and expansion of the biofuels industry. This needs to stop!
Together, we can make a difference on the future of our country’s economy, environment, and security.
Again, I ask you to make your voice heard and get the facts out. Write to the EPA today and show your support for raising the regulatory cap to allow blending up to 15 percent. Follow this link to do so electronically.
I hope I can count on you to make your voice heard. Please do it today.