For decades, sensible skeptics have warned that government
tariffs and subsidies designed to encourage the conversion
of corn to alcohol and requiring fuel distributors to mix
this corrosive stuff into our gas tanks was not going to “solve
the energy crisis,” reduce dependence on imported oil,
or do anything helpful for “the environment” –
unless by “the environment” you actually meant
“the bank account of Archer-Daniels-Midland.”
If the critics failed to mention this expensive boondoggle
could also promote starvation and food riots around the world,
it was probably only because they were afraid of being ridiculed
for “piling on.”
Guess what.
While both Congressional Democrats and Republicans were cheering
a fivefold increase in mandated ethanol use as little as a
year ago, and President Bush was calling the cornfuel program
a key to his strategy to cut gasoline use by 20 percent by
2010, today The Great Ethanol Mandate seems to meet Count
Galeazzo Ciano’s definition of an orphan. (“Victory
has many fathers,” etc.)
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Former “renewable fuels” champion Lester Brown
now writes in the Washington Post “It is impossible
to avoid the conclusion that food-to-fuel mandates have failed.”
“Our enthusiasm for corn ethanol deserves a second
look,” said Rep. Jane Harman, D-Calif., in a House hearing
Tuesday.
It’s hard to believe ethanol is getting “clobbered
the way it’s getting clobbered right now” over
something as insignificant as some starving Africans, says
longtime champion Sen. Charles Grassley, R-Iowa.
What happened?
Everyone knew all along it takes 1,700 gallons of water and
51 cents in tax credits to create one gallon of ethanol from
corn – at which point the stuff still can’t compete
without a 54-cents-a-gallon tariff to block the importation
of cheaper sugar-cane ethanol from Brazil.
Everyone has long known we use up more petroleum-based fuel
in trucks and tractors and distilleries to produce and transport
ethanol than it ever saves us in the tank – and that
(speaking of tanks) the stuff is meantime creating unmeasured
private costs by rusting out our gas tanks and fuel lines.
It’s long been clear the 30 million acres of American
farmland devoted to growing corn for ethanol this year will
consume almost a third of America’s corn crop –
driving up prices for meats and all other grains, worldwide
– while yielding fuel amounting to less than 3 percent
of our total petroleum consumption. (If cattle stop eating
corn, you have to feed them something else, driving up the
price of other grains, even if Sen. Grassley still can’t
seem to figure that out.)
In December, the Congressional Research Service warned that
even if we devoted every acre of American cornfields to ethanol
production – at who knows what human cost in terms of
world-wide hunger and starvation – it still wouldn’t
be enough to meet current arbitrary and grossly optimistic
federal mandates.
In February the journal Science reported “Corn-based
ethanol, instead of producing a 20 percent savings, nearly
doubles greenhouse emissions over 30 years. …”
(Not that this really matters, since current minimal rates
of global warming are mostly caused by solar activity and
other natural causes, and are a good thing, anyway. More food
production.)
Forests? Being bulldozed for more corn production. O, Bambi
and Thumper lovers, what hast thou wrought?
Suddenly, inspired by the sight of thoroughly predictable
food-price riots overseas, political candidates who were happily
hopping on the ethanol bandwagon as recently as 2006 are looking
for a way out. Sen. Barack Obama said Sunday on NBC’s
“Meet the Press” that it may now be more important
to help “people get something to eat” than to
keep pushing the biofuels boondoggle up the hill.
“Corn ethanol was presented as an almost Holy Grail
solution,” moaned Rep. Mike Doyle, D. Penn., this week.
“But I believe its negatives today far outweigh its
benefits. … We need to revisit this … and back
away from the food-to-fuel policy.”
Would those be the same negatives I and the other skeptics
have been warning about for years, Congressman? What did someone
do in the interim, teach you simple arithmetic and Economics
101?
Meantime, the governor of Texas and 26 U.S. senators, including
GOP presidential nominee-in-waiting John McCain, have asked
the Environmental Protection Agency to cut in half this year’s
requirement for 9 billion gallons of corn ethanol in order
to ease the pressure on rising food costs.
That would be a start. But washing their hands and pretending
they don’t know who gave birth to the biofuel boondoggle
will not suffice. Congress needs to repeal the ethanol mandates,
subsidies, and protective tariffs immediately. The congressmen
need to admit they don’t know a darned thing about energy
markets, and vow to stop using billions of our precious tax
dollars meddling in matters they don’t understand.
Finally, investors and energy companies need to soberly review
where it gets them to rush into programs that couldn’t
possibly survive in the unmanipulated market, based on the
promise that big federal subsidies are going to make everyone
rich.
The old warning was “Remember Colorado oil shale.”
The new one will now be “Remember ethanol.” But
the lesson itself is the same: Depending on idiotic congressional
enthusiasms is like trying to buy presents for the kids based
on last year’s Christmas list. Best to double-check.
By now they’ve probably outgrown the Lego set and the
Chatty Cathy, and moved on.
That thing they left you holding? It’s called “the
bag.”