EDITORIAL: Alternatives to Ethanol: Iowa Corn Farmers Are Thrilled

By The Akron Beacon Journal, Ohio

Mar. 5–Sen. Charles Grassley didn’t curb his glee when President Bush pledged in the State of the Union address to increase renewable fuels sevenfold by 2017. The Iowa Republican grasps the landscape of renewable fuels. Ethanol stands virtually alone. Greater production will require more of the primary ingredient — corn, grown by Iowa farmers.

Grassley and his constituents weren’t the only ones smiling. Many analysts see the alcohol fermented from mashed grain as a way to reduce the country’s dependence on foreign sources of oil. Others point to the environmental benefit, ethanol resulting in fewer greenhouse emissions that contribute to global warming, or climate change. A broad coalition has rallied on Capitol Hill to attach further federal incentives to proposed farm legislation.

The cause received a substantial boost in the 2005 energy bill, a mandate that refiners double by 2012 the amount of ethanol they blend into the nation’s gasoline supply. As it is, fuel blenders receive a tax subsidy of 51 cents for every gallon of ethanol they use. One smart proposal would place the subsidy on a sliding scale, the tax break shrinking as the price of oil climbs. Another idea aimed for the farm bill would encourage oil companies and automakers to make more widely available a fuel composed of 85 percent ethanol and 10 percent gasoline.

The delight of Grassley and others is understandable. Ethanol deserves a place in any effective national energy strategy. It also carries costs.

Iowans may be pleased at the increased demand for corn pushing prices higher. Those ranchers feeding cattle aren’t likely to be so cheery. Neither are consumers when meat prices reflect the bump. Ethanol production consumed 20 percent of the nation’s corn crop last year. One study forecasts 50 percent by 2008, and yet the country would remain far short of the president’s goal for renewable fuel.

More, the environmental benefits of ethanol shouldn’t be overstated. Producing ethanol involves a substantial amount of energy, including diesel trucks transporting the fuel, their emissions contributing to global warming. For these reasons, many experts urge the development of cellulosic ethanol, derived from switchgrass and other fibrous materials requiring less energy to tend and generating fewer greenhouse gases.

Cellulosic ethanol remains in the laboratory. Much closer to practical reality is the "plug-in hybrid" car, running on both gas and electricity. These vehicles tap into the power grid, yet their more efficient energy use promises a dramatic energy and environmental dividend. Might governments make a difference using plug-ins for their fleets? Charles Grassley and his fellow lawmakers would do well to show the same enthusiasm they show for enthanol.

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Copyright (c) 2007, The Akron Beacon Journal, Ohio

Distributed by McClatchy-Tribune Business News.

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