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First Wall Street, Then Automakers, Now U.S. Ethanol Industry Wants a Bailout






"Enough already!"


That ought to be Washington's response to the Renewable Fuels Association's request this month for $1 billion in financial aid to struggling ethanol producers so they can finance current operations.


But wait, there's more. The RFA -- the ethanol industry's lobby -- has also suggested to the incoming administration that it create a $50-billion federal loan guarantee program to finance investment in the ethanol producers' expansion.


And furthermore, the RFA has told Obama & Co. that any automaker that receives federal aid should be required to only produce vehicles that can run on any gas-ethanol blend up to 85 percent ethanol, beginning with the 2010 model season.


Now, if the struggling U.S. ethanol producers were producing cellulosic ethanol, which holds promise as a truly "green" product, that would be one thing. But the struggling ethanol producers the RFA is talking about are, with few exceptions, folks who only produce corn ethanol.


Here's the deal with corn ethanol: So many research papers have been written on how un-green corn ethanol truly is that people who cover green-car news could do nothing but report on those studies and still they wouldn't have time to report on all of them.


Reporting on unfavorable corn-ethanol studies is like covering crime in Los Angeles. Sometimes there are so many fatal drive-by shootings and other unnatural deaths in the County of Angels during an eight-hour shift that a crime reporter simply can't get to them all.
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Tags: Alternative Fuels, Biofuels, Ethanol, Bailout, Ethanol, Renewable Fuels Association


First Wall Street, Then Automakers, Now U.S. Ethanol Industry Wants a Bailout was originally published by Green Car Advisor. Read the full story by clicking here.

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