Issue Brief: Ethanol

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Overview

As part of a comprehensive domestic energy strategy, corn ethanol helps to diversify America’s fuel supply, reduce our dependence on foreign oil and foster a more vibrant economy. Ethanol has become an essential component of the U.S. motor fuel market. Today, ethanol is blended into more than 90 percent of the nation’s fuel, and is sold virtually from coast to coast and border to border. The U.S. industry supports over 400,000 jobs around the country and contributes $53.6 billion to our nation’s Gross Domestic Product every year.

Using ethanol as a part of the motor fuel market helps to reduce carbon dioxide emissions by more than 30 percent. In 2010, the production and use of 13 billion gallons of ethanol in the United States reduced CO2-equivalent greenhouse gas emissions comparable to removing more than 3.5 million cars from America’s roads.

The ethanol industry also reduces our dependence on foreign oil at a time in which we import nearly two-thirds of our oil, sending over $1 billion per day to other countries. Currently, ethanol displaces the need for more than 445 million barrels of oil per year.

Recommended Action

• Reform the current ethanol tax incentive program.
• Expand consumer fuel choice by increasing the number of flex-fuel vehicles and investing in biofuels infrastructure.
• Base greenhouse-gas accounting on sound science.
• Ensure feedstock neutrality in developing advanced biofuels.