Wednesday, May 07, 2008

Wake up and smell the food burning

The Biofuels Backlash
In December the Congressional Research Service warned that even devoting every last ear of American-grown corn to ethanol would not create enough "renewable fuel" to meet federal mandates. According to a 2007 OECD report, fossil-fuel production is up to 10,000 times as efficient as biofuel, measured by energy produced per unit of land.

Now scientists are showing that ethanol will exacerbate greenhouse gas emissions. A February report in the journal Science found that "corn-based ethanol, instead of producing a 20% savings, nearly doubles greenhouse emissions over 30 years . . . Biofuels from switchgrass, if grown on U.S. corn lands, increase emissions by 50%." Princeton's Timothy Searchinger and colleagues at Iowa State, of all places, found that markets for biofuel encourage farmers to level forests and convert wilderness into cropland. This is to replace the land diverted from food to fuel.

As usual, Congress is the last to know, but maybe even it is catching on. Credit goes to John McCain, the first presidential candidate in recent memory who has refused to bow before King Ethanol. Onetime ethanol opponent Hillary Clinton announced her support in 2006, as the Iowa caucuses beckoned. In 2006 Barack Obama proposed mandating a staggering 65 billion gallons a year of alternative fuel by 2025, but by this Sunday on NBC's "Meet the Press" he was suggesting that maybe helping "people get something to eat" was a higher priority than biofuels.

Mr. McCain and 24 other Senators are now urging EPA Administrator Stephen Johnson to consider using his broad waiver authority to eliminate looming biofuel mandates. Otherwise, the law will force us to consume roughly four times the current requirement by 2022. In fact, with some concerned state governments submitting helpful petitions, Mr. Johnson could largely knock out the ethanol mandate regime, at least temporarily.

Over the longer term, however, this shouldn't be entrusted to unelected bureaucrats. The best policy would repeal the biofuel mandates and subsidies enacted in the 2005 and 2007 energy bills. We say repeal because there will be intense lobbying to keep the subsidies, or transfer them from projects that have failed to those that have not yet failed.