IF we use American coal as the source of fossil energy for the distillation process (the biggest "energy hit" during production), this displaces a large amount of foreign crude oil--far more than just the ethanol produced. If we use American coal (or better yet, nuke) to generate electricity, and convert a bunch of houses from using oil heat to using electric heating, we displace even more foreign oil
"If we use American coal (or better yet, nuke) to generate electricity, and convert a bunch of houses from using oil heat to using electric heating, we displace even more foreign oil" Yup---dig more coal, build more nukes (including breeder reactors), and make more biofuels for transportation uses with those sources as "prime mover" energy providers.