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February 7, 2005

West Wing's Ethanol Problem

by David Morris, AlterNet

In a recent episode of The West Wing, dark horse Democratic presidential candidate Matt Santos (played by Jimmy Smits) condemned ethanol on the grounds that, "Storage is a nightmare." The West Wing is a smart television program, written by smart people with access to an enormous amount of expertise. Part of the show's appeal is its willingness to present both sides, even with highly controversial issues like the morality and efficacy of the death penalty or political assassinations. When it comes to ethanol, however, The West Wing's writers apparently believe there is only one side and it is exceedingly negative.

"The level of incentives for ethanol, an infant industry with enormous growth opportunities, doesn't come close to those paid to oil, a mature industry whose fuel source is running out. "

- David Morris, RE Insider

This was demonstrated a number of times in the show's early years, when Aaron Sorkin was in charge. In the first season, Vice President John Hoynes (Tim Matheson) was asked to break a tie vote in the Senate in favor of extending the ethanol tax incentive. He balked, since he had vigorously opposed that incentive when he was in the Senate. At the show's conclusion, President Bartlet (Martin Sheen) gives Hoynes permission to kill the incentive, and confesses, "You and I agree on ethanol, but you were the only one to say it."

The Jan. 26 episode, "King Corn" raised ethanol trashing to an entirely new level. In this episode, one of the presidential candidates, liberals as well as conservatives, and Democrats as well as Republicans, strongly object to ethanol, although in the end all but one ends up "pandering" to Iowa's caucus voters by endorsing the fuel.

A Short History of Ethanol

Ethanol is liquor. It begins with the fermentation of sugars into a weak alcohol, a process carried out by anyone who makes wine or beer. Distillation then eliminates the water. The result is 100 percent (200 proof) alcohol. Some call it White Lightning. You could drink it, although it'd knock you on your behind.

That is why Matt Santos' comment about ethanol being a storage "nightmare" was so wacky. Gasoline is a chemical stew of over 150 highly toxic chemicals. Gasoline storage systems have to protect us from gasoline. We don't need to be protected from vodka.

Ironically, the benign nature of ethanol has stunted its industrial and fuel use for almost 150 years. In 1860, ethanol was one of the nation's best-selling chemicals, used as an illuminant and solvent. When the Civil War broke out, President Abraham Lincoln imposed a $2.08 per gallon Spirits Tax to finance the war effort. Ethanol was subject to the tax. Kerosene, the first commercial petroleum product and far inferior to ethanol as an illuminant, was poisonous and thus subject to a tax of only 10 cents a gallon. Industrial and fuel ethanol disappeared for 45 years.

In 1906, Teddy Roosevelt, seeking a competitor to Big Oil, convinced Congress to lift the Spirits Tax. The ethanol industry was back in business. By the end of World War I it was producing some 50 million gallons a year. Then the ax of Prohibition fell. Prohibition didn't actually ban industrial alcohol, but gaining a production permit was difficult because the feds feared the output would be diverted to the far more profitable illegal liquor market.

Although Prohibition ended in 1933, a legacy of that era remains. Today, just as in 1925, ethanol must be doctored with a small quantity of gasoline before leaving the biorefinery to prevent its being diverted to the liquor market. Which is why you shouldn't drink the ethanol that goes into your car.

Tone Deafness

In "King Corn," Matt Santos' liberal wife expresses her outrage at ethanol. "A billion dollars a year to make a gasoline additive," she grumbles. "A billion that could be spent on providing prenatal care, head start education, child health care."

Any politician's wife knows that federal incentives are not fungible. Eliminating an incentive for nuclear power doesn't mean that money suddenly becomes available for child care. More importantly - and here again we have an instance of The West Wing's tone deaf script - Matt Santos hails from Texas, as does former VP John Hoynes, his opponent in the primary.

As you might have guessed, the level of incentives for ethanol, an infant industry with enormous growth opportunities, doesn't come close to those paid to oil, a mature industry whose fuel source is running out. An analysis done for the Institute for Local Self-Reliance found that the oil industry receives as much as $11 billion a year just in tax incentives. We should add to this the costs of protecting our access to foreign oil, an expense the Pentagon itself estimated to be about $50 billion a year (the estimate was done before the current Iraq war). Then add the environmental and public health costs, which by all accounts are even higher than the military costs.

One wouldn't expect an actual politician from Texas to make these points. But we should expect The West Wing's writers to allow its viewers to hear them.

Several episodes have offered the unrebutted proposition that it takes more oil to make ethanol than is displaced by ethanol. The show's writers could easily have learned that there have been about 20 peer-reviewed studies of that issue. All of them agree that in 1980 the proposition was true. And all agree that since then both the ethanol refinery and the farmer have become much more energy efficient. Some 90 percent of all current studies conclude that ethanol is currently a net energy producer. And as corn stalks begin to displace natural gas as the refinery's primary energy source, the net energy ratio will become exceedingly attractive.

Underdog Makes Good

Ethanol has the sort of underdog-makes-good story that should appeal to scriptwriters in Hollywood and New York.

Consider that in 1978, even with its tax incentive safely in hand, ethanol faced daunting challenges. To be successful, producers had to convince a bitterly opposed oil industry to sell ethanol at its gas stations. It had to convince a reluctant auto industry to allow ethanol in its gas tanks.

Until the late 1980s, most ethanol was sold in gas stations owned by farmer cooperatives, not by oil companies. And people, especially in the upper Midwest, willingly used ethanol blends even when their car manuals strongly discouraged their use.

Critics point to the significant presence of agribusiness giant Archer Daniel Midland (ADM) in the ethanol industry. There is no question that without the political clout of ADM the ethanol industry would not exist. But ADM no longer controls the industry. In 1990, ADM produced 75 percent of the nation's ethanol. Today, that proportion has fallen to about 35 percent. The fastest growing segment of the industry consists of farmer- and locally-owned ethanol facilities. Farmer-owned biorefineries, collectively, now produce more than ADM does.

Oil incentives are usually permanent. Ethanol's incentives are temporary. Which has led the industry to have to fight every few years for its survival. The last time was in 1997 when conservative Republican William Archer of Texas, chairman of the powerful House Ways and Means Committee, vowed to kill the incentive. It was an epic battle, lasting over two years. Finally, in 1998, the ethanol incentive was extended until 2007.

Archer used many of the arguments raised on The West Wing. But his primary goal wasn't to reduce government waste. In his tenure no oil or gas incentive was reduced. He was trying to protect his state's 14 MTBE refineries. MTBE is a gasoline additive made from natural gas and an oil refinery byproduct. In the oxygenate and octane-enhancing market, it was ethanol's competitor.

MTBE received no tax incentives. It was the gasoline additive of choice by much of the country outside the upper Midwest. But it did indeed have a public cost; it pollutes groundwater and lakes. That discovery led some 15 states to phase out MTBE, but the damage has been done. Clean-up costs may run to $30 billion, a sum four times greater than all the incentives spent on ethanol from 1980 to 2004.

On West Wing Alan Alda plays Sen. Arnold Vinick, a Republican from California who will undoubtedly become his party's presidential nominee. Sen. Vinick was the only ethanol opponent in the show to tell the Iowans what he believed.

No Fuel Is Perfect

Is ethanol a perfect fuel? Of course not. There are no perfect fuels. Do agricultural states strongly support incentives for biofuels? You bet they do, in the same way that California lobbies for aerospace spending and Connecticut for shipbuilding.

A more interesting question is, do farmers benefit from biofuels incentives? Only marginally. Of the 52 cents per gallon incentive for ethanol, the corn farmer receives about a nickel. But if farmers own the ethanol plants; that is, if they own a share of the manufacturing facility that converts their raw material into a finished product, they can receive dividends of 20-30 cents per gallon.

Biorefineries can be much smaller and far safer than oil refineries. They can rely on a wide variety of feedstocks available in virtually all parts of the nation. This allows us to envision a different future for agriculture, one in which farmers here and abroad do not compete with other farmers but with the fossil fuel industry. It's a future in which farmers are no longer condemned to sell their raw material at an ever-decreasing price, but can earn their income from multiple sources.
Clearly, there is another side to the ethanol story. Perhaps it will get equal time on future episodes of The West Wing.

This article was originally published February 2, 2005 on Alternet.com and is reprinted with permission from the publisher.

About the author...


David Morris is Vice President of the Minneapolis based Institute for Local Self-Reliance. He is the author of five books, the most recent of which is Seeing the Light: Regaining Control of Our Electricity System. As a member of the Congressionally-created Biomass R&D Technical Advisory Committee, he advises USDA and USDOE. His 2004 report, A Better Way, offers a transportation strategy based on a combination of electricity and biofuels. dmorris@ilsr.org
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Reader Comments (14)
 
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Anonymous
February 7, 2005
The government effectively mandated the use of either MTBE, noted as bad, or ethanol, a drinkable compound with about 60% of the gas mileage of gasoliine and that causes an increase in NoX and PM10 (the real small stuff that sticks to your lungs) relative to gasoline, by the CAA pushed by Bush I. Stupid governmet influenced by selfish lobbyists for MTBE and ethanol passing stupid laws. Get rid of both.
Comment 1 of 14
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February 7, 2005
Great article. I appreciate that you tell us what ethanol is. Often times articles forget to define their topic for readers who may not be familiar with the subject matter. I hope this article gets read by the writers of the West Wing.

Jessi Callihan
Borrego Solar Systems
Comment 2 of 14
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Anonymous
February 7, 2005
I sincerely hope that all of you pro-ethanol people do not do what the pro-MTBE people did when they approved the unrestricted use of MTBE. It did away with one pollution problem and caused another which has given it a death sentence. I think that we have the ability to utilize both and to solve the problems of air emissions for one and groundwater issues for the other. All industries need to put politics aside and together make a product that does not hurt the public drinking water and breathing clean air.
Comment 3 of 14
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Anonymous
February 8, 2005
Why can't anyone in this country acknowledge that all ethanol fuels are not the same. The International Energy Agency has stated ethanol produced from sugar cane in Brazil is competitive to gasoline (at $20 per barrel oil), half the cost of ethanol produced in the U.S. from lower-yielding grain crops like corn, and one-fourth the cost from smaller grains like wheat in Europe. Brazil allows sugar cane farmers to cogenerate electricity at 3 cents per kilowatt-hour by burning the waste. Why not America? The answer is utility monopolies.
Comment 4 of 14
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Anonymous
February 8, 2005
In a totally random search to investigate the claims made by "Guest User", I blundered across this paper by Mr. Morris written in 2000. http://www.carbohydrateeconomy.org/library/admin/uploadedfiles/Other_Gasoline_Crisis_Speeding_Up_the_Shift_Fr.htm

It concludes that the use of additives is largely unimportant in improving/degrading air quality. I'd like to know of the findings reported in the article are still supported by field data/current thinking on the issue.

Mr Morrise?

Cheers,

Tripp
Comment 5 of 14
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Anonymous
February 9, 2005
Based on the Audubon article it seems that there are some differences of opinion in the peer-reviewed studies (USDA vs David Pimentel). Does anyone have any links to these studies? The latest paper that is mentioned on David Pimentel's faculty page is 1994. Surely there must be more recent analysis available. I think it's important to get down to real base facts. This is attempted in both of these articles but not to the extent desired. For instance when David Morris talks about ethanol being a net energy producer he is not specific enough. The oil refineries must use energy to operate just as the ethanol refineries do… but how much comparatively? Is it possible to run the ethanol refineries on corn alone?
On the storage point, is it possible that the "wacky" idea of storage being a nightmare based on the separation problem listed in the Audubon article? I doubt it came out of nowhere.
I'm staying neutral on this until I get more information.
Comment 6 of 14
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Anonymous
February 9, 2005
Ethanol is not so sustainable or benign as Mr. Morris wants readers to think. Check out another excellent ethanol article at http://magazine.audubon.org/incite/incite0408.html
Comment 7 of 14
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Anonymous
February 9, 2005
Tripp,

Cars are getting cleaner. Thus additives of any kind have less impact on air quality. Ethanol, like MTBE, is also an octane enhancer.

Fred,

You can go to our web site, www.newrules.org and click on the Energetics of Ethanol and it has links to several of the major studies on both sides. As for the production plants being bad neighbors, well, they are industrial manufacturing plants. It is not the production of ethanol that may cause a problem but the drying of the byproduct, high protein animal feed. But this is small, possibly an odor problem and therefore a reason to avoid an urban neighborhood based ethanol facility.
Comment 8 of 14
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Anonymous
February 9, 2005
Etanol is a great gasoline substitute and it does require a lot of energy to produce. If you produce another product at the same time you cost falls and efficiency rises. Hayes, Kansas has a new natural gas fired electric powerplant that uses the heat from the turbines to brew ethanol. This is not the only co generation process that works. Our goal is to reduce petroleum consumption. We need to conserve and utilize all the alternatives to break our oil addiction. Thank you
Comment 9 of 14
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Anonymous
February 9, 2005
I think we need some numbers to analyze this more intelligently:
1) Embodied energy: What are the mean average BTUs consumed per BTU delivered and the range of calculated BTUs consumed per BTU delivered recently from the "20 peer reviewed studies"? What were they in 1990? In 1980?
2) Embodied dollars: What are the recent mean average costs per delivered gallon of ethanol and the range of calculated costs from the "20 peer reviewed studies"? What were they for 1990 and 1980?
3) How do these costs compare to costs of the "Negawatts" (Negagallons?) involved, i.e. the avoided costs of any more efficient possibilities?
4) Actually, I'd read a letter in Home Power that it's the production plants that are the more likely environmental "bad neighbors" in this energy stream. Anybody know of articles or studies on this?
Thanks.
Comment 10 of 14
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Anonymous
February 10, 2005
I am looking at investing in a company that will market a genetically modified corn seed so that the corn crop will grow its own amylase and other enzmes required for the entire corn crop - stover and ears - to be convereted to ethanol. These enzymes would be dormant until a "switch" was turned on in the ethanol plant. They claim that such a system used in corn or switchgrass could make ethanol competitive with gasoline without an ethanol subsidy in maybe five years. Any opinions before I invest?
Comment 11 of 14
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Anonymous
February 11, 2005
Ethanol is an excellent fuel alternative. Fortunately, corn is not the only feedstock to produce it. Cellulose, sugar yielding plants, and many other grains can be used to produce ethanol. We are quite a ways from determining the best combinations of all sources to fully optimize ethanol without compromising the integrity of our wildlife and natural resources. I think that diversity of ethanol feedstocks will ultimately reveal its suitability and desirability in replacing petroleum based fuels.
Comment 12 of 14
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Anonymous
February 15, 2005
Ethanol has been said to be an alternative fuel that will reduce our dependence on mideast oil... I just wish the real "West Wing" in D.C. would pay less attention to ethanol and war and focus more attention on solar energy, wind energy, and more fuel efficient cars.

The priorities of this administration are truly backwards.
Comment 13 of 14
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Anonymous
March 19, 2005
Ethanol is one of the most subsidized fuels in the US, yet it still costs more than gasoline.
Comment 14 of 14
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