President Obama has made crony capitalism, especially the green-energy variety, a hallmark of his administration—and Republicans have rightly criticized him for it. But when it comes to ethanol, Republican governors have been as bad as Democrats.
Last week the Governors’ Biofuels Coalition sent a letter to the Obama administration urging it not to cut the amount of biofuels required in gasoline, known as the Renewable Fuels Standards (RFS). (The 33-governor Coalition used to call itself the Governors’ Ethanol Coalition, but now they include cellulosic biofuels made from organic products other than corn.)
According to the letter: “Through continued expansion of biofuels plants, it will be possible to deliver millions of gallons of clean, renewable fuel, create thousands of jobs, lower imported oil expenditures, and reduce greenhouse gas emissions by more than 80 percent, compared to gasoline.”
Sounds a lot like environmentalist assertions that Republicans so often challenge.
But: “[T]he adoption of EPA’s proposed 2014 RFS volume requirements threatens to have a negative economic impact on the rural economy and on the biofuels industry, specifically on biodiesel and cellulosic ethanol. The EPA’s proposed volume cuts for biodiesel are creating turmoil, resulting in production cutbacks and layoffs. More than halfway through the year, many jobs are in jeopardy and many biodiesel plants have been negatively impacted. This comes at a time when corn yields are expected to be very high.”
Translation: Expansive government mandates create jobs in our states, and we’re fine with that.
Now consider the ironies of this plea. Two-thirds of the Coalition governors are Republicans. Many of them have harshly criticized Obama and Democrats for imposing a mandate making us all have health insurance. But they support the same federal government forcing us to buy gasoline with ethanol.
Or how about this irony: Many of those Republican governors are furious that the EPA has been aggressively intervening in their states. But with respect to ethanol, they are demanding a more activist EPA.
And this irony: Many environmentalists have abandoned their support for ethanol because a growing body of evidence indicates that ethanol production harms the environment—but not some 21 Republican governors.
Of course, there’s nothing inherently wrong with mixing limited amounts of ethanol in gasoline—if consumers want it. But most consumers couldn’t care less, and would likely choose straight gasoline, especially now that new drilling technologies are producing so much of it.
If these Republican governors really believe in ethanol, let them back it with their state revenues—where they can be held accountable to their voters. Don’t force the rest of us to use a product we may not want. Republicans should understand that argument; it’s the same one they used to oppose Obamacare.