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Climate Change, Energy Security and CAFE: With E85, the Country Has a Better Mousetrap

Editor’s note: A few weeks ago, we published a guest post from the Network for New Energy Choices that was critical of American automakers for promoting corn-based ethanol and flex-fuel vehicles rather than embracing more stringent CAFE standards . A week later, NNEC published its report The Rush to Ethanol: Not All Biofuels are Created Equal. We contacted General Motors to see if they’d like to respond to the post and report; today, we’re publishing that response. We’re interested in the debate here, and we hope you’ll join in.

We’ve looked at the Rush to Ethanol paper, read media reports and listened to the arguments its authors have presented.

It seems the group supports Corporate Average Fuel Economy (CAFÉ) increases and endorses a sea change in American culture toward mass transportation more than reducing our dependence on oil.

The intention of CAFÉ was not to increase fuel economy, but to reduce U.S. gasoline consumption. If we found a better mousetrap and achieved the desired result, shouldn’t we consider it?

We don’t agree with many of the points presented in Rush to Ethanol. But we do agree that corn ethanol alone is not the ultimate solution. Corn ethanol, however, is today’s technology and it helps reduce U.S. gasoline consumption today.

In the near term, the best opportunity for reducing gasoline consumption, oil imports, and greenhouse gas emissions is through increased use of bio-fuels. And the bio-fuel with the greatest potential to displace petroleum in the U.S. is ethanol.

Consider the differences between CAFE and ethanol.

A 4 percent-per-year increase in CAFE would save 8.5 billion gallons of gasoline annually by 2017, less than half of the projected growth in American oil consumption.

In other words, even with this proposed CAFE increase, America will still be using more – and likely importing more—oil than ever.

But if all of the E-85 capable vehicles on the road today and committed to by the manufacturers were to run on E-85, we could displace 22 billion gallons of gasoline annually. And if all other manufacturers made the same commitment, the savings increase to 37 billion gallons.

That’s more than quadruple the savings that proposed CAFE increases would achieve. And it’s enough to reduce America’s oil consumption more than 10 percent versus today’s levels, and reduce CO2.

The vehicles are on the road today, but they are not being fully utilized because of constraints on E-85 supply and distribution. The automakers are doing their part, but the infrastructure side is not catching up.

With continued commitment from the automakers and energy producers along with support from government to grow bio-fuel production and distribution, including next-generation cellulosic ethanol, we can make a big difference.

CAFE has fallen dramatically short of its goals. And yet, for our nation, the original goals of the legislation are more important than ever.

It is time to address reducing U.S. gasoline consumption and oil imports, as well as the challenges presented by CO2 emissions.

The solutions are within our grasp.

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3 Responses to “Climate Change, Energy Security and CAFE: With E85, the Country Has a Better Mousetrap”

  1. David Anderson Says:

    GM pokes it’s head into the green blogosphere and no readers have comments? Come on, people… :)

  2. c! Says:

    > A 4 percent-per-year increase in CAFE would save 8.5 billion gallons of gasoline annually by 2017, less than half of the projected growth in American oil consumption.

    I’m assuming that this number takes into account the gradual turnover of the US auto fleet. (Actually, I’d like to see how -all- of the numbers were derived.) If so, then the article makes a good implicit point: older and less efficient automobiles will remain on the roads long after CAFE standards are updated. The same turnover point applies twice to E85, however: we need the cars to run it, and we need the infrastructure to be in place. This chicken-egg market problem is unlikely to solve itself without some “external” help.

    In the end, I think we need to raise CAFE standards as well as look at ethanol auto options and associated infrastructure. Doing both of these is a political headache, but both are important. I’m aware of the land use problems associated with corn-for-ethanol, and Mr. Bedore doesn’t seem to insist that corn be used… however, perhaps I’m not reading between the lines.

  3. Tom Konrad Says:

    GM’s argument that “if all of the E-85 capable vehicles on the road today and committed to by the manufacturers were to run on E-85, we could displace 22 billion gallons of gasoline annually. And if all other manufacturers made the same commitment, the savings increase to 37 billion gallons.” is is disingenuous… because, if all corn production in the US (11.2 billion bushels in the 2005/6 season) were converted into ethanol, this would only produce 28 billion gallons of ethanol.

    So 22 billion gallons of ethanol would require 79% of the US corn crop… and corn prices have tripled, despite the fact that we are currently only using 15% of the crop for ethanol. 38 billion gallons simply can not happen without massive imports or new feedstocks. Clearly, the scenario they outline cannot occur until cellulosic ethanol becomes commercial (and will also require the development of a massive energy crop industry, using much land which is currently not farmed.). While we wait, perhaps we should work on efficiency, which will save, rather than cost us money.

    (I have links to most of my data sources in this article on cellulosic ethanol:
    http://www.altenergystocks.com/archives/2007/07/a_modest_proposal_cellulosic_beef_1.html)

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