Obama Expected To Roll Out A New Biofuel Focused Interagency Group

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The federal government is expected to announce tougher standards for measuring the greenhouse gases emitted from ethanol today. This will throw into doubt the whole notion that ethanol is better for the environment than petrol gasoline.

To ease the burden that will come from this ruling, there will be a new government entity set up to forge “a plan to encourage the production of more automobiles that can run on high-level ethanol blends, and increase the availability of high-level ethanol blends at gasoline stations,” the Wall Street Journal reports.

The adminstration will also try to increase subsidies to biofuel makers, as well as the amount of biofuels available at the pump.

This feels like lunacy to us. The Federal government’s ethanol bill already totals $4 billion, according to the Congressional Budget Office. Multiple reports have shown corn-ethanol isn’t better for the environment. It stands zero chance of displacing oil anytime soon. By the time it might be able to do that, there should be enough plug-in hybrids and electric cars, that it won’t be an issue.

Could cellulosic and algae based oils prove worthy? Perhaps, but we’re not sure what that we need a whole new interagency set-up to figure that out.

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