Asymtave
Member
The ethanol subsidy from the federal gov't to ethanol producers is $1 per gallon I believe. So for every gallon of ethanol they sell Uncle Sam sends them a check for $1.
The ethanol industry is currently lobbying for the minimum requirement for ethanol in gasoline to be raised from 10% to 20%. The problem they have is that there is so much capacity being added that they will soon (this year) be producing more than enough ethanol to put 10% in every gallon of gas sold in the country.
So they have a problem - they'll have more ethanol than can be sold and will lose out on the gov't free money. There are simply not enough E85 (85% ethanol/15% gas) pumps out there, and if there were, people wouldn't buy it anyway for a couple of reasons.
Most automakers are protesting loudly over the proposed increase to 20% ethanol in gasoline. Older (meaning mid-90's or earlier?) vehicles would likely have issues with the fuel system. Automakers are likely concerned about the 100K mile emissions warranty they have to honor by law.
I'm not even slightly mad at the price of corn. What I am mad about is that I have to pay a tax on ethanol that I buy in the form of say, Vodka, and then the gov't turns around and hands my money to ADM! Making money coming and going indeed! All that good Vodka dumped into gas tanks and burned
The ethanol industry is currently lobbying for the minimum requirement for ethanol in gasoline to be raised from 10% to 20%. The problem they have is that there is so much capacity being added that they will soon (this year) be producing more than enough ethanol to put 10% in every gallon of gas sold in the country.
So they have a problem - they'll have more ethanol than can be sold and will lose out on the gov't free money. There are simply not enough E85 (85% ethanol/15% gas) pumps out there, and if there were, people wouldn't buy it anyway for a couple of reasons.
Most automakers are protesting loudly over the proposed increase to 20% ethanol in gasoline. Older (meaning mid-90's or earlier?) vehicles would likely have issues with the fuel system. Automakers are likely concerned about the 100K mile emissions warranty they have to honor by law.
I'm not even slightly mad at the price of corn. What I am mad about is that I have to pay a tax on ethanol that I buy in the form of say, Vodka, and then the gov't turns around and hands my money to ADM! Making money coming and going indeed! All that good Vodka dumped into gas tanks and burned