It’s important to remember that ethanol cannot be transported via gasoline pipeline.
Since trucking ethanol to the coasts would undermine its energy-saving goals, and building ethanol plants closer to the coasts could exacerbate water shortages, ethanol doesn’t seem to be an ideal answer for the thirsty cities in the western United States.
reported in 2007 that the company told Tampa officials it would need 400,000 gallons of water a day.
“A modern ethanol plant uses about three gallons of water to produce one gallon of ethanol,” according to the report, which estimated that by the end of 2008, the demand from new ethanol plants in the United States would require “a 254?
In fact, the first significant ethanol subsidy at the federal level was a million loan program passed in 1977.
Whatever the motives, one thing is certain: Washington’s bear-hug embrace of ethanol is changing America’s landscape, figuratively and literally.A tariff on Brazilian ethanol has been in place since 1980.In the understated words of the CRS report, a duty of 54 cents per gallon “has been a significant barrier to ethanol imports.” “This means consumers are paying twice,” says Diane Katz, director of risk, environment and energy policy at the Fraser Institute.According to studies published by CFDC, ethanol also cuts down on “tailpipe carbon-monoxide emissions by as much as 30 percent.” Citing studies by Iowa State University and Merrill Lynch, the American Coalition for Ethanol argues that “the growth in ethanol production has caused retail gas prices to be 29 to 40 cents a gallon lower than would otherwise have been the case” and that “oil and gas prices would be 15 percent higher, if not for the availability of ethanol.” This wonder fuel, however, comes with its share of caveats.“Since ethanol has a somewhat lower energy content than gasoline per gallon, more fuel is required to travel the same distance,” CRS reports.