Robert Bryce: Obama buys the biofuel hype

Ethanol production won’t solve America’s energy problems


According to Power’s story, the RFA provided Obama’s team “with some ideas on how to craft the language” on an economic recovery package. Those suggestions include the creation of up to $1bn in short-term credit facilities that could allow ethanol producers to finance their operations” and “a $50bn federal loan guarantee programme to finance investment in new renewable fuel production capacity and supporting infrastructure.” The RFA also wants the feds to require that any automaker getting federal bail-out money must begin producing fleets that are “flex-fuel”