[Smokin' Joe]

what no one sees is that there is a .51 tax on each gallon of ethynol, thanks to the corn lobbyists. the refining cost is unbelievable because of the greedy hands in the pot. If we could make the fuel from sugar cane, well, that would be different but nothing's going to change until our government decides to quit politicizing the problem and starts focusing on how to get this country independent of foreign oil.

But wait, there's more!

MTBE is being replaced by ethanol, after the Congress (or was it the EPA at the direction of Congress?) mandated either one or the other be used as an oxygenating additive in motor fuels.

It turns out that MTBE does not break down readily, is toxic, and is contaminating groundwater. Congress refused to renew any waiver of liability on MTBE, so the switch is on.

Additionally, COngress has mandated ethanol useage, which when combined with MTBE replacement, will bring the total requirement (projected) for this year to some 6.1 billion gallons of ethanol.

Now for the fun part.

The US, at 100%, can only produce 4.5 billion gallons of that 6.1 billion gallons of ethanol, so 1.6 billion gallons will have to be imported.

There is a tarrif on imported ethanol. Congress put that there also, long ago, to protect domestic producers.

This makes the Congressional 'profit' on a gallon of motor fuel multiples of the oil company profit on that same gallon (Federal fuel tax+ ethanol tarrif), but who gets the blame?

[garandgal]

The US, at 100%, can only produce 4.5 billion gallons of that 6.1 billion gallons of ethanol, so 1.6 billion gallons will have to be imported.

Sure about that?

http://www.neo.state.ne.us/statshtml/121.htm

[P-40]

The US, at 100%, can only produce 4.5 billion gallons of that 6.1 billion gallons of ethanol, so 1.6 billion gallons will have to be imported.

With all the new plants under construction and so many existing ones under expansion there will shortly be a glut of ethanol.