Posted on: August 23, 2013 in Ethanol, EPA

In response to a recent Wall Street Journal editorial, AEC Executive Director Brooke Coleman decided to write a letter to the editor in defense of cellulosic ethanol and the RFS. The letter is posted below.

Your editorial "Put A Corn Cob in Your Tank" (Aug. 17) calls cellulosic ethanol a failure and asserts that oil companies are being forced to blend a nonexistent fuel. The Journal also claims that ethanol blending increases pump prices. Whether you like ethanol or not, it certainly doesn't increase gas prices. It's not only 50 cents cheaper than gasoline, but at a more basic level it extends supply. When fuel supply goes up, price goes down.

The allegedly failing cellulosic biofuels industry now has commercial plants up and running in Florida and Mississippi, with many more such plants under construction. No question, the worst recession in 100 years slowed us and most everyone else down. But Congress was smart enough to give EPA the authority to waive the obligation on oil companies to blend any cellulosic biofuel gallons not yet available. And that's what EPA has done.

You ask why, if ethanol is so perfect, it needs to be mandated. The answer is pretty simple. Global motor fuel markets are so noncompetitive and consolidated, and price controlled by OPEC, that you need policy to achieve what a free market would otherwise do on its own: provide market opportunity for cheaper, better fuels.

Pretending that motor fuel markets are working just fine doesn't serve the interests of readers who are getting gouged at the pump and want to know why.

R. Brooke Coleman

Director

Advanced Ethanol Council

Boston

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