On Hill, Oil Independence Still Far Off
Who's going to eat the corn—cars or cattle? Congress is on track to expand its love affair with ethanol by increasing the current mandate on the amount of biofuel that refiners must use sevenfold to 35 billion gallons by 2022. The plan is a favorite not only of the corn industry, but of the greatly expanded ethanol industry as well, including the biggest Silicon Valley venture capital firms. They've put big money on a bet of an ever expanding market for the alcohol fuel alternative, even though it costs more and delivers worse mileage than gasoline, and has debatable environmental benefits. The oil refiners have reared up against idea of expanding the mandate, and they are being joined by a host of food companies that have seen their costs skyrocket because of the new ethanol demand for the corn used for livestock feed. Biofuels proponents will counter that ethanol could be made from sources other than corn, like the "cellulosic" material of fast-growing weedy plants like switchgrass and timber waste. Could be. As soon as someone builds a factory that can do so. (Oh, and there will be a push for subsidies for that, as well.)
However the Senate resolves these issues, the measure then heads on over to the House. There, expect the same war of interests to be played out all over again through the remainder of the summer, even while motorists have that $3-plus reminder at every gas pump that politicians haven't solved the nation's energy morass.
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