Corny Capitalism

Earlier this year, the Environmental Protection Agency issued another one of those announcements read exclusively by government bureaucrats and green policy wonks. The EPA decided to delay a decision to increase the concentration of ethanol legal in gasoline from 10% to 15%. So-called E15 fuel would have to wait for approval until November. It was a little-read regulatory decision that barely made a splash in the media. But it was also a rock thrown at Washington's hornets' nest of food and agricultural lobbyists. "We are disappointed," warned food giant Archer Daniels Midland. "We find this further delay unacceptable" and a "dereliction of duty," harrumphed ethanol lobbying group Growth Energy. By delaying the decision, the EPA punted on a crucial decision. The pressure brought to bear against the agency by the agriculture industry has been incredible. It's also been applied well; the EPA will most likely still approve E15 fuel in the fall. That's bad news for any American who likes to drive. In a country powered by the automobile, E15 is an enormous question mark. Since the 1970s when ethanol was first regulated by the feds, concentrations of alcohol in fuel above 10% have been illegal. But the government, lost in a dream world where cars can run on corn, has tied itself in regulatory knots trying to force ethanol into the fuel supply. The history of ethanol is a sad torrid affair of crony capitalism and green fantasies. By jumping in bed with the agriculture industry and blindly slapping on new regulations, the government artificially propped up an industry and put itself in a bind from which there may be no return...more