$2 or higher gas - Can ethanol make a comeback? Message Board

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Non-Tech : $2 or higher gas - Can ethanol make a comeback?

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Oct 31 9:30 AM EST

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To: Think4Yourself who wrote (1440)	7/15/2006 5:48:10 PM
From: richardred	Read Replies (2) of 2801

I believe Ethanol from corn is a start to get the infrastructure built. The internet and telcom had bubbles too. Infrastructures were built. Although at great past personal individual and business losses. Many of the past business failures have been absorbed. IMO most internet businesses have better models for it. Individual and business investors have become wiser for it, IMO. The ethanol from corn infrastructure should be able in time to be converted to a bio-mass. Profitability and business models of the companies involved will determine their ultimate success or demise. IMO the fact we have other choices besides ethanol will give other businesses a chance to compete for the markets. >the Bush administration is helping the ethanol special interests pick our pockets There have been many past administrations that have had a chance to lessen dependance also. It was the Carter administrations that came up with the start ethanol subsidies in 1978. Bill Clinton also had time to do something to lessen dependance. That ’70s Show and beyond—from Carter to Clinton The Arab oil embargo of 1973 catalyzed the renewable fuels industry. In order to lessen U.S. dependency on foreign oil, the Carter administration backed alternative fuels research. Ethanol was the closest technology ready for immediate commercialization, and loans were ensured for the construction of ethanol plants. The Carter administration’s focus on renewables in the face of a Mideast oil embargo in the ’70s paved the way for guaranteed loans to fund ethanol plants. While new technologies may make ethanol more cost effective, the current model has become a boondoggle that assures profits for agribusiness giants on the backs of taxpayers. Photo by: Warren Gretz The administration instated taxes on ethanol imports and, in 1978, The Energy Tax Act gave an exemption for gasohol (gasoline cut with no less than 10 percent ethanol). In 1997, Doug Bandow’s article “Ethanol Keeps ADM Drunk on Tax Dollars” appeared in Investor’s Business Daily and spoke to the 54 cents tax exemption per gallon on ethanol: “This special-interest loophole accounts for the bulk of more than $10 billion in subsidies to ADM since 1980,” this article by the Cato Institute senior fellow stated. The Reagan administration maintained the subsidies program to the Corn Belt states and actually gave free corn to fuel producers (in 1986, this translated to about $29 million for ADM). The Clinton administration imposed an order to include ethanol in gasoline, which meant direct profits for the companies controlling the industry and no choice for consumers at the gas pump. Bovard reports that “every $1 of profits (ADM) earned by its ethanol operation costs taxpayer $30.” newfarm.org Clinton approves ethanol funds Alestle Staff Report The $14 million needed for the nation's first ethanol research plant to be built in University Park has been approved by President Bill Clinton. Congress passed the bill last month to appropriate the $20-million plant. The remaining $6 million will be paid by the state of Illinois. The plant will be a model of ethanol plants. Researchers will be allowed to use the plant and the equipment to experiment with ethanol. Ethanol is derived from corn and is used an additive in gasoline. Construction on the plant is set to begin October 2001. "The research done here will boost the Midwestern economy," said Brian Donnelly, executive director of University Park. Donnelly told the Alton Telegraph on Monday that research into ethanol could lower the price of gasoline by 10 cents per gallon. "It's just a wonderful development," Donnelly said. siue.edu

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