Ethanol a Scam? You Decide

Ethanol a Scam? You Decide

Ethanol is heavily subsidized

Ethanol is heavily subsidized

Why do we pay so much for gasoline? Why is it mandated that we as consumers have ethanol in our gasoline? I have pondered the theory and compiled research, and to be honest, my findings were clear: There should be no minimum mandate, but cronyism keeps the Ethanol business alive. Established in 2007, the Renewable Fuel Standard requires a certain level of Bio fuels to be mixed in with transportation fluid in increasing amounts each year until 2022, when the total bio fuels nationwide will reach 36 billion gallons.

According to the Environmental Protection Agency (EPA), “Congress created the renewable fuel standard (RFS) program in an effort to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil. but according to Science Magazine the Renewable Fuel Standard causes green house emissions to increase by nearly double in 30 years, while increasing greenhouse gasses for 167 years! They claim that the emissions associated with plowing more lands for corn crop releases more greenhouse gasses into the environment. The EPA misses this point when projecting greenhouse gas reductions.

I checked with the Sierra Club, figuring if anyone would stand behind corn-based ethanol it would be them. But to my great surprise, they strongly oppose corn-based ethonal. Arguing they are unsustainable, they cite concerns in The National Research Council, and according to their report, there is great potential for environmental harm such as the pollution of rivers and other waterways as well as reduced water availability in some communities. They further argue its “time to move beyond corn.”

Another concern regarding ethanol is weather or not the corn industry can meet the demand for more and more corn-based bio fuels. Studies have shown a correlation between ethanol and crude prices due to the increasing demand on corn to fuel our vehicles. Estimates are that as crude oil prices rise, so will corn, with 40 percent of corn crop now being used for bio fuels. They argue “Within three years, demand for corn for ethanol may well exceed the traditional largest source of demand for corn –livestock feeding.  If the ethanol industry expands now and in the future, it may bid up corn prices – thus tending to narrow its processing margins unless ethanol prices simultaneously go up more than corn prices.”

The ethanol business is also heavily subsidized, despite some of the subsidies being discontinued. The Bio-energy Program for Advanced Bio fuels, which makes payments to advanced bio-fuel companies to expand the production of corn oil bio-diesels. These organizations received approximately $53 million dollars in grants and loans, according to taxpayer.net. They also have the Bio-refinery Assistance Program gives out grants and loan guarantees for advanced bio-fuels and they gave out $25 million dollars between 2009-2012. They also have the Empowering Assistance Program, and the Rural Energy for America Program, totaling $9.8 million dollars in reimbursements and grants.

Beyond these grants and subsidies, they also receive big tax breaks. Starting with the Volumetric Bio-diesel Excise Tax Credit, which is given to feed-stocks like corn, and they are projected to receive $16.2 billion between 2013-2022. The second tax credit they are eligible for is the Alternative Fuel Vehicle Refueling Property Credit, which allows for up to a 30 percent tax break, and this applies to businesses such as gas, those installing bio-fuels, or blending pumps that have E85. From 2013-2022, they are slated to cost taxpayers $220 million, according to taxpayer.net.

But the problem’s don’t end there – not by a long shot. What about the effects on your vehicle’s engine beyond just gas mileage? There is evidence it does do harm. USA Today is reporting that many warranties from automakers will be void if a customer should use E15 gasoline. AAA has also chimed in, claiming that E15 could be unsafe for vehicles and they advocate more investigation into the impact of E15 gasoline. “It is clear that millions of Americans are unfamiliar with E15, which means there is a strong possibility that many motorists may improperly fill up using this gasoline and damage their vehicle,” said AAA President & CEO Robert Darbelnet. “Bringing E15 to the market without adequate safeguards does not responsibly meet the needs of consumers.” It doesn’t appear that many vehicles are prepared to fuel up with these bio-fuels, as the vast majority of vehicles do not have EPA approval for E15.

With the risks of environmental pollution, vehicle breakdowns, and higher food costs, some don’t see why we should continue to subsidize the corn industry. It appears the corn industry is in a battle by themselves, and the empirical evidence shows that they are losing. People deserve better.


“Green” Billionaires Stand to Benefit from Expensive Renewable Energy

“Green” Billionaires Stand to Benefit from Expensive Renewable Energy

“Green” Billionaires Stand to Benefit from Expensive Renewable Energy

“Green” Billionaires Stand to Benefit from Expensive Renewable Energy

The corrupt “green” movement has been used as a means to advance the agenda of the businesses and politicians that have aligned themselves with a false crusade for expensive renewable energy. No one exemplifies this like the Sierra club, who has a serious conflict of interest due to the fact that many of its board members have financially benefited from being matriarchs in renewable energy.

The billionaires club has united with the Sierra Club and the green movement at large to scam millions of Americans out of their hard earned income while they enrich themselves in huge profits. One such example is David Gelbaum, who has $500 million dollars invested in more than 400 “green” energy companies, every single one of whom benefit from the Sierra Club’s war on fossil fuels. With his $100 million dollar donation, he has used the Sierra Club as a tool to villianize his competition and in effect force businesses and homeowners into a quid-pro-quo for themselves and their cronies.

Cape Wind is a project that was engineered to erect 130 wind turbines across 24 square miles. Developing this project is Energy Management Incorporated, a 35 year old energy company specializing in conservation and development. These turbines would generate 170 megawatts which is only 75 percent of the average demand for electricity in the region. Additionally, developers planned to sell a large majority of 77 percent of the the wind power they would produce to N-Star and national Grid for double the market value, who would then pass on the higher rates to consumers.

After failing to obtain all the private financing necessary to complete the project, Cape Wind resorted to securing $150 million dollars worth of loan guarantees from the United States Department of Energy. Strikingly, this only amounts to six percent of the total cost of the project, which is slated to cost $2.5 billion dollars. Most often this security only comes before investors pour their cash into a project, but even in this circumstance, investors couldn’t stomach. Both investors, and the two electric utilities that had contracted to buy most of the energy it would have generated, abandoned the project

The American Research Institute indicates that there are hidden costs in supplying wind power, because of the cost associated with keeping available the plants that balance wind’s variations, even though adding wind to the system greatly reduces the quality of generation for which they are paid. Another factor in these hidden costs are the higher fuel consumption per unit of output that wind demands on these plants, and the cost of additional long-distance transmission that wind requires and the losses that come with those transmissions.

One thing is clear as day: The corrupt “green” energy industry cares more about profits than protecting other environmental areas. Save Our Sound, a group that opposes the Cape Wind project, says that “In addition to the 40,000 gallons of unspecified transformer oil on the proposed 10 story electrical service platform, the Cape Wind project would contain an additional 24,700 gallons of oil in the 130 turbines.” What could potentially happen to the beaches and inlets if the tanks on the Energy Service Platforms were to rupture, or if there was a vessel collusion, causing oil to spill? According to Save Our Sound, Cape Wind’s own computer simulation of a spill reveals that oil would reach Cape Cod and Island beaches within five hours.

Many residents are concerned that wildlife could be adversely effected if there is an oil spill, with as many as six million birds migrating through the area in the spring and fall. Typically, birds fly at heights above the turbine blades, but in adverse weather when low cloud ceiling causes the birds to fly at altitudes the same as the wind turbines, creating the potential for the catastrophic killing of migrating birds.

So it is clear: The wealthy and powerful are fighting for a cause that embodies cronyism like nothing other. People are struggling in this economy, and these crooks want to double or triple the cost of energy, while they pump their millions of dollars into the Sierra Club to destroy other sources of marketable, cheaper energy. They don’t let the environmental realities get in their way, they don’t allow human welfare to concern them, much less the birds that are endangered due to their destructive policies. People in communities all across America are seeing this scam for what it is, and that is a good thing for all of us.