I wrote this editorial for my politics class tonight and figured I’d share. 🙂
You have heard of ethanol before, you have even used it regularly for the last several years in the form of a 10% blend into your regular gasoline. It is a fuel produced entirely in the United States and is supporting U.S. industries and contributing to our economy. What could be so bad about a home-grown fuel? The answer: not much.
Ethanol really came into play with the Renewable Fuel Standards (RFS), which were established in the 2005 Energy Policy Act. The RFS sets goals for the United States to use more biofuels to offset our use of petroleum fuels. Petroleum fuels come from a non-renewable resource, and once these fossil fuels are gone, they are gone. Renewable fuels, such as corn-based ethanol, advanced ethanols, cellulosic ethanol, and biodiesel are our future.
Essentially, RFS policy creates the marketplace for ethanol. The Environmental Protection Agency implements all ethanol policy, and requires that (nearly) all gasoline sold in the United States carry 10% ethanol. Recently, there has been a push to make 15% ethanol more readily available, which I think is important for our freedom to choose to use renewable fuels.
The corn industry has been in a boom since the RFS mandate, but corn is primarily a food source. Of course, there will always be corn-based ethanol, but the future of ethanol is in advanced and cellulosic ethanol. Advanced and cellulosic ethanols utilize other grasses, such as miscanthus, and plant residue to produce fuel. Still, ethanol is a desirable fuel that we should be more dependent on and it is vital that RFS mandates stay in place so that this industry can get a kick start in coming years.
According to the Chicago Mercantile Exchange (trade date February 13, 2014), gasoline futures for March 2014 are sitting at $2.76 per gallon, while ethanol futures are at $1.97 per gallon. June 2014 gasoline is $2.90 per gallon, with ethanol at $1.88. February 2015, one year from now, gasoline futures are $2.54 per gallon, and ethanol is $1.67 per gallon. By the way- ethanol is not subsidized, so no taxpayer dollars are used to artificially create these low prices of ethanol.
What does all of this information mean? Well, ethanol is consistently $0.75 to $1.00 less per gallon than gasoline, sometimes exceeding $1.00 less. So why should we be paying one dollar more per gallon of fuel when there is a less expensive alternative in the next pump over? Ethanol (85% blend) does have up to a 20% lag in mileage, compared to gasoline, but that is more than made up for in the cost savings per gallon. Additionally, ethanol does little to harm your car’s engine. My 2009 Chevy Impala has run 112,000 miles and counting, all on 85% ethanol.
I support the RFS mandate and hope to see increases in ethanol and other renewable fuel use in the United States in coming years.
It is your freedom to choose, so why not choose the fuel that is American grown?
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