Stress Testing Biofuels: How the Game Was Rigged

The draft conclusions announced by Environmental Protection Agency (EPA) administrator Lisa Jackson were that cellulosic ethanol and other next-generation renewables will dramatically reduce greenhouse-gas emissions over their entire life cycle, but that in some scenarios, corn ethanol (as well as lesser-used soy biodiesel) can produce even more emissions than gasoline. At a hearing after the announcement, House Agriculture Committee chairman Collin Peterson, a Minnesota Democrat, accused the EPA of attacking corn and soybean farmers.

"You're going to kill off the biofuels industry before it even gets started," ... "You are in bed with the oil industry!"

It's hard to see how. Earlier studies exposed corn ethanol as a carbon catastrophe; the EPA had to use extremely generous assumptions to produce scenarios in which it's even remotely attractive as a fuel alternative. In any case, the heavily subsidized corn-ethanol industries won't really be penalized for promoting deforestation; Congress exempted its existing plants from any consequences in the 2007.

At her May 5 news conference with Energy Secretary Steven Chu and Agriculture Secretary Tom Vilsac announced that the Obama administration plans to push the auto industry to make flex-fuel vehicles that run on 85% ethanol blends — and since ethanol plants have been slammed by a combination of high corn prices, the rise of cleaner technologies and the lousy economy, Washington will increase its subsidies.

In other words: O.K., O.K., it might imperil the planet, but fortunately we can't do anything to stop it, and we actually plan to encourage it.

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