Originally Posted by pmelby
Wrong again. The VEETC (Volumetric Ethanol Excise Tax Credit) provided a $0.45 tax credit for each gallon of ethanol used by the blender
. The blenders are the gasoline distribution companies (big oil). My company, as a small producer (50mmgpy), did benefit from a subsidy that has long since expired. We also used to collect a few hundred k$ for the E85 that we blended (with straight run, or natural gasoline) and sold direct to stations that sell E85. The blenders, as soon as the VEETC expired, simply raised the price of gas, passing the bill to the consumer.
It all boils down to whether or not you believe that we should be trying to use a renewable source for a portion of our motor fuel. Ethanol is the only viable alternative at this point. It has its drawbacks, especially when derived from corn starch. Bio-butanol(sp?) would probably be a better alternative for blending with gasoline but the yeast & enzymes for conversion aren't ready yet (commercial plants just starting to scale up), same with cellulosic.
do you dispute ethanol costs US tax payers some $6Billion last year and that legislation has now changed to below... this artificially inflates prices for corn which will increase Food costs for just about everyone.
"The RFS mandates that at least 37 percent of the 2011-12 corn crop be converted to ethanol and blended with the gasoline that powers our cars…[As a result] the current price of corn on the Chicago Mercantile Exchange is about $6.50 per bushel—almost triple the pre-mandate level."
totally disagree ethanol is a viable alternative fuel ... NO fuel that cannot stand on it's own financial merits .. should be forced down on American consumers!!!