Dinneen to Forbes: Forbes Should Be Advocating For, Not Arguing Against, Increased Competition
To the Editor:
What’s there about lower prices at the pump, less pollution and reduced reliance on imported oil that Robert Bradley, Jr., doesn’t like (“It’s Time to Repeal the Renewable Fuel Standard,” April 17)?
Thanks to the Renewable Fuel Standard (RFS), U.S. ethanol reduced wholesale gasoline prices by an average of $1.09 per gallon in 2011, saving the average American family $1,200. Using ethanol results in a 48 to 59 percent reduction in greenhouse gas emissions compared with gasoline. And American ethanol displaces the amount of gasoline that would have been refined from 462 million barrels of imported crude oil — more than we import from Saudi Arabia.
Claiming that “Last year alone, the Standard diverted 40 percent of all U.S. corn toward ethanol production” is misleading. Ethanol production doesn’t use sweet corn (which people eat), and U.S. ethanol production uses only 3 percent of the total global grain supply. Moreover, the American ethanol industry generated 37 million metric tons of feed in 2012 — enough to produce seven quarter-pound hamburger patties for every person on the planet.
Nor has ethanol increased food prices. Only 14 percent of the average household’s food bill pays for raw agricultural ingredients such as corn. Eighty-six percent of their food bill pays for energy, transportation, processing, packaging, marketing and other supply chain costs.
Contrary to Mr. Bradley, 15 percent blends of ethanol with gasoline (E15) don’t damage engines. The U.S. Environmental Protection Agency (EPA) has approved E15 for cars, light-duty trucks and SUVs built in 2001 or later — more than 62 percent of the vehicles on the road. The EPA subjected E15 to more than 6.5 million miles of testing — equivalent to 12 round trips to the moon.
The oil companies are refusing to invest in the facilities to blend more ethanol with gasoline and provide consumers with more choices and lower prices at the pump. Forbes Magazine — which used to promote itself as a “Capitalist Tool” — should be advocating for, not arguing against, increased competition.
Bob Dinneen
President and CEO, Renewable Fuels Association (RFA)
The Renewable Fuels Association is the trade association of the American ethanol industry.

















