August 09, 2010
Gloer: U.S. needs to flex its muscle on ethanol
Published in Lansing State Journal
The Gulf oil spill is a frustrating reminder of how reliant we are on oil. Tragically, it has taken this leak to highlight how important it is for Congress to ensure that domestic ethanol is a cornerstone of America's long-term energy plan.
Today, ethanol is the only available, affordable alternative to oil. In 2009, the ethanol industry contributed $53.3 billion to the nation's GDP, generated $8.4 billion in federal tax revenues and created and supported more than 400,000 jobs across the country - 3,000 which are right here in Michigan. Our state's five ethanol plants produce 265 million gallons of ethanol each year and boosted the Michigan economy by over $600 million last year alone.
Home-grown ethanol has not only demonstrated the promise of stimulating the economy but also improving our air. In 2009 alone, the production and use of 10.6 billion gallons of ethanol reduced CO2-equivalent GHG emissions by approximately 16.5 million tons in the U.S., the equivalent of removing more than 2.7 million cars from America's roadways.
This progress is impressive, but we could do even more with innovative policies from Congress and a regulatory environment that fosters growth.
First, we must let the market work by lifting the government's arbitrarily-created regulatory cap on ethanol. By increasing the blend level of ethanol in gasoline from its current level of 10 percent to 15 percent, we will create more than 136,000 jobs, inject $24.4 billion into the U.S. economy, displace seven billion gallons of imported gasoline per year and reduce greenhouse gas emissions by 20 million tons per year.
Unfortunately, federal approval of this simple change continues to experience one bureaucratic delay after the next. A decision that should have been rendered by Washington at the end of last year was recently delayed yet again without any meaningful explanation by the Department of Energy.
Beyond allowing higher ethanol blends in our fuel, we must create an infrastructure in which American motorists can more readily use an alternative fuel. For instance, all cars sold in America should be "flex-fuel" vehicles, and we should support significantly wider usage of "blender pumps" at gas stations so that motorists can choose for themselves the most suitable fuel at the best value.
Ethanol represents America's best renewable, affordable, and reliable fuel. It will help grow our economy, increase our energy independence and it's environmentally friendly. Now is the time, while the consequences of our oil addiction are so disturbingly and destructively clear, for our leaders in Washington to act appropriately by taking decisive action to ensure ethanol becomes a lasting cornerstone of a cleaner and more secure energy future ....
