Ethanol for America

With recently published reports from the World Bank and the U.S. Department of Agriculture, it’s important to remind our friends in the media, policymakers and the public about those facts and the overall importance and benefits of ethanol. These new reports definitively and absolutely demolish the distortion that there is some sort of “food-versus-fuel” debate; these new reports conclusively state there is no competition between grain for ethanol, and grain for food. 

Year to year, consistent and substantial increases in crop yields and harvest volumes have proven time and again that America’s farmers will continue to produce more than enough corn to meet demand for ethanol as well as meet domestic demand for food, for livestock feed, and for export – with ample corn supplies leftover for storage. 

In mid-August, the U.S. Department of Agriculture announced that corn farmers are again on track for yet another record corn crop and yield per acre for this year – a crop estimated to surpass the records set in 2009—without adding a single additional acre of land into agriculture production.   

Moreover, in late July, the World Bank disproved the biggest criticism of ethanol once and for all, by showing that the skyrocketing grocery bills of two years ago were not caused by ethanol, but rather, by rampant market speculation and record fossil fuel prices. It’s no wonder that ethanol’s foes – many of whom enjoyed record profits in the food and petroleum industry during that same period – concocted that myth as a convenient slight-of-hand to distract attention away from the real culprits.

Make no mistake. There is a well-funded attempt to disrupt and marginalize the U.S. ethanol industry, concocted by those with vested interests, particularly the food-manufacturers who keep grocery prices high, and global oil companies. But that cannot diminish the fact that America’s ethanol producers contribute greatly to the betterment of the nation.

Ethanol production is revitalizing America’s rural areas – some of the hardest hit by the economic downturn – creating and supporting the growth of more than 400,000 jobs across the country, contributing $53.3 billion to the nation’s GDP and generating $8.4 billion in federal tax revenues in 2009 alone. And ethanol delivers better value for the U.S. consumer on a dollar-for-dollar basis compared to gasoline.

Beyond its contributions to getting our economy back on track, ethanol is also improving our air and enhancing our security.  In 2009 alone, U.S. production and use of ethanol reduced CO2-equivalent greenhouse gas emissions by approximately 16.5 million tons in the U.S. — that’s the equivalent of removing more than 2.7 million cars from America’s roadways — and it eliminated the need to import at least 364 million barrels of oil, keeping $21.3 billion in the U.S. economy.

Add to this the promise of cellulosic ethanol which will reduce greenhouse gas emissions by 86 percent compared to gasoline and can be made from a variety of feedstocks – from wood waste in Maine to citrus pulp in Florida – stimulating job growth and diversifying our energy supplies across the country.

Significant progress has been made in moving cellulosic ethanol to the marketplace, with multiple pilot and commercial-scale plants in various stages of planning, construction and operation around the country.

Ethanol’s positive impact on our economy, our energy independence and our environment is undeniable.

But ethanol can play an even bigger role as the cornerstone of a cleaner and more secure energy future for America if policymakers in Washington take decisive action when it resumes debate about comprehensive energy legislation this fall.

The Fueling Freedom Plan (available online at www.growthenergy.org/fuelingfreedom), proposed by Growth Energy – the coalition of U.S. ethanol supporters – would do just that. If adopted, this plan would culminate in the ending of the industry’s federal subsidies, the investment in a national ethanol infrastructure including “blender pumps,” a U.S. fleet of “flex-fuel” vehicles, and a fair and open marketplace for fuel competition.

As a result, consumers would have real choices. Our air would be cleaner. Our prosperity would be enhanced. And our security would be strengthened.

Ethanol represents America’s best renewable, affordable, and reliable fuel. With Congress poised to again debate new energy legislation and with the consequences of our oil addiction so disturbingly and destructively clear, now is the time for Washington to enact policies that support the use and consumption of ethanol to ensure a cleaner, brighter future for our country.

The American people deserve nothing less.

Jim Nussle is a special advisor to the Growth Energy Board of Directors