By Mary Drier
Staff Writer
MICHIGAN — After years of pushing for use of alternative fuels, the Environmental Protection Agency (EPA) announced in November, 2013, a proposal to reduce the amount of ethanol required to be mixed with gasoline in 2014.
Ethanol is an alcohol made from distilling corn. Ethanol is suppose to emit less carbon dioxide than gasoline when it burns. The POET Biorefining complex outside of Caro distills locally grown corn into ethanol.
In 2007, congress instituted the 10 percent blend of ethanol in gasoline standard with an eye towards increasing the standard to a 15 percent blend later.
That has changed now. One of the reasons for the change is most gas station pumps and vehicles are not equipped to handle more than a 10 percent ethanol blend, and the demand isn’t there to increase it, according to the EPA.
The change in the EPA’s stance concerns ethanol companies, ethanol advocates, and environmentalist, and especially farmers.
The proposed reduction of ethanol came before the Tuscola County Commissioners to consider a resolution about it.
“With this being an agricultural area and an ethanol processing factory right here, it would seem this would have a huge negative impact on our area,” said commission Chair Tom Bardwell.
The Tuscola County Economic Development Corporation recommended a resolution to keep the ethanol standard at 10 percent.
“I’ve heard arguments on both side of this… Ethanol drove corn prices up, which is good for farmers, but it is suppose to have also increased the cost of other corn-based products. Depending on who you listen to, it either increases or decreases gas prices,” said Bardwell. “Plus, there are (government) subsidies involved.
“This will have a huge impact on fertilizer, fuel, and overall farming operations – some (farmers) bought and rented more land just to grow corn.”
Commissioner Mathew Bierlein said he had mixed feelings about ethanol and in his opinion it was less efficient and machines that used it required more maintenance.
Commissioners decided they wanted more information before making a decision so they asked POET Biorefining General Manager David Gloer for his input.
According to Gloer, oil companies are spending billions of dollars pushing back against ethanol and changing the standard would have significant consequences.
“We could see $2 a bushel corn and (farm) land value decreasing to sell for $1,000 an acre. It’s the oil companies that is driving this change. Demand for gas is down because cars are getting better gas milage and people are driving less,” said Gloer.
POET Biorefining is one of the worlds largest ethanol producers with plants throughout the U.S.
The refinery in Caro produces 58 million gallons of ethanol, 9,000 tons of corn oil, and 145,000 tons of distillers grain.
The concept of ethanol development and implementation as a fuel additive was to reduce United State’s dependency on foreign oil, it’s a cleaner and affordable alternative to fossil fuels, would have a positive impact on agricultural and related businesses, and is better for the environment, this proposed reduction goes against all that, noted Bardwell.
The EPA’s proposal is an ethanol obligation of 13.01 billions of gallons for this year which is a reduction from the 14.4 billions that was suppose to be the standard.
Because the reduction would have a “significant negative impact on agricultural and business industry with a projected 500 million bushel drop in corn demand, an 80 cent to $1 drop in corn prices per bushel, higher gasoline prices for consumers, a higher demand for foreign oil, reduce the incentive for high blends of corn and infrastructure, and multi-billion dollar investment losses for the next-generation of biofuel,” the Tuscola County Commissioners approved that wording in their resolution opposing the proposed change.
The resolution also noted that the commissioners are “firmly and resoundingly opposed as this reduction would created a highly negative and unfavorable impact on economic development, the environment, and national security.”
Mary Drier is a staff writer for the Tuscola County Advertiser. She can be reached at drier@tcadveriser.com.