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Character is doing the right thing when nobody's looking. ~J.C. Watts What does Jared Polis do when no one else is looking. Here he discusses making tweleve millionaires and laughs about causing an American economis recession. In his own words, we see the real Jared Polis.
The 9 News Investigative Report about Jared Polis' New America Charter Schools.
The legislation the American public calls “The 700 Billion Dollar Bail Out” is known by many names: HR1424, Public Law 10-343, The Emergency Economic Stabilization Act of 2008, Troubled Assets Relief Program, Alternative Minimum Tax Relief Act of 2008, and Energy Improvement and Extension Act of 2008. In truth, some of these names are just portions of the overall legislation. To avoid conflict with the revenue origination clause of the United States Constitution (Section 7: Presentment Clause), this legislation came in the form of an amended House bill. By those citizens who are constitutionalists, this presents the first controversy with the legislation. It is seen skirting the original intent of the Constitution’s founders and exploiting a “loophole”. What you will see in this legislations are titles that do not match up precisely due to this amended status. Both presidential candidates voted Yea to pass HR1424 as amended. You can read the entirety of the bill by following the link below:
Emergency Economic Stabilization Act of 2008: The portion of the legislation that allows the United States Secretary of the Treasury to purchase assets up to $700 billion. The intent is to purchase failing mortgage backed securities from United States banks. Specifically the language of this bill states “to buy residential and commercial mortgage loans, credit card securitizations, auto loans, and other financial assets for which there is no current market.” An initial $250 billion was given for immediate use by the Federal Treasury. An additional $100 billion requires United States Presidential certification. The final $350 billion are subject to further United States Congressional approval. The bill sets up a new organization within the United States Treasury called The Office of Financial Stability headed by Neel Kashkari, formerly Vice President of Goldman, Sachs & Co. This appointment is another source of controversy as Mr. Kashkari has financially benefited during his time at Goldman, Sachs, & Co. in their actions concerning the subprime mortgage crisis.
Energy Improvement and Extension Act of 2008: This portion of the legislation proposes many tax breaks and credits for certain renewable energy activities. It also increases taxes on other portions of the energy industry. This portion of the legislation includes:
The creation of renewable energy bonds
A restructuring of state and FERC electric policy
Creation of carbon auditing within the tax code
Tax credit for sequestration of carbon dioxide
Tax credit for renewable electricity produced from marine sources (like tidal energy)
Tax credits for small wind power generation
Tax credit for geothermal heating pump operations
Accelerated tax deprecation schedule for cellulosic biofuel and biomass ethanol plants
Tax credits for biodiesel
Extension of tax credit for alternative fuels
Property Tax credit for those properties used in alternative vehicle refueling
Tax Credit for plug-in electric drive vehicles
Tax benefits to bicycle commuters
Idle heavy truck reduction unit and advance insulation exclusion from current heavy truck tax
Tax credits for residential energy efficient properties
New energy efficient home tax credit
Modification of appliance qualifications that count toward the energy efficient criteria
Commercial tax deduction for energy efficient commercial buildings
Accelerated depreciation for reuse and recycle properties
Accelerated tax deprecation for smart grid and smart meter electrical systems
Tax credits for certain fuels used in the steel industry
Energy credits for advanced coal project reinvestment
Energy credits for coal gasification investment
Tax increase on coal excise tax
Modification of tax code that allows certain refineries to be expensed
Increase of the Oil Spill Liability Trust Fund
Tax Extenders and Alternative Minimum Tax Relief: This portion of the legislation temporarily raises the cap on Federal Deposit Insurance (FDIC) from $100,000 to $250,000 per depositor per bank until 2009. It makes illegal the use of offshore corporations by Hedge fund managers to defer paying taxes. It also freezes the tax deduction given for specific domestic oil and gas production activities at 6%. The legislation adjusts the alternative minimum tax to prevent 20 million Americans from bearing the burden of a tax originally targeted at high income households. In addition to the $700 billion, there is an additional estimated $150 billion over ten years attached to this bill. The bill provides an additional $8 billion in tax relief for those affected by the Midwest, Texas , and Louisiana natural disasters and $100 billion in tax breaks. In addition to those previously discussed, this legislation also includes breaks for:
Expansion of the child tax credit
Tax breaks for certain businesses
Tax credits for use of alternative energy and hybrid vehicles
Tax credits for research activities
Tax reductions for victims of severe weather
A one thousand dollar tax credit for low income homeowners
An extension of unemployment insurance
Earmarks and/or Pork Barrel Spending: Scott Starin does not believe in earmark spending, period. His position on this subject is especially important in a piece of legislation like Pubic Law 10-343 where earmarks and/or pork barrel items should not be present. The following items are considered earmark and/or pork barrel spending for certain industries that were included in this legislation. We encourage you to voice your opinion and differentiate the candidates for whom you vote on this subject. Tax breaks in this legislation viewed as special interest earmarks include:
Virgin Island and Puerto Rican Rum (Section 308)
American Samoa (Sec. 309)
Mine rescue teams (Sec. 310)
Mine safety equipment (Sec. 311)
Domestic production activities in Puerto Rico (Sec. 312)
Indian tribes (Sec. 314, 315)
Railroads (Sec. 316)
Auto racing tracks (317)
District of Columbia (Sec. 322) – As many members of Congress have second homes in Washington DC , they have given themselves a tax break by including this in the legislation.
Wool research (Sec. 325) Film and television productions (Sec. 502) – Does Hollywood need a tax break?
Certain wooden arrows designed for use by children (Sec 503)
Litigants in the 1989 Exxon-Valdez oil spill (Sec. 504)
How much does his legislation cost you, the individual taxpayer? The total number of individual tax papers as of 2006 was approximately 134 million people. The total number of tax returns including individual, corporate, employment, gift, excise, and estate tax returns was approximately 169 million. We can do the math for both the $700 Billion bail out and/or the total cost of this piece of legislation $850 billion.
Cost per individual tax payer of the United States Treasury Portion - $5,223 per tax payer Cost per individual tax payer of the Total Cost of the Legislation - $6,343 per tax payer Cost per tax return of the United States Treasury Portion - $4,142 per tax return filing Cost per tax return of the Total Cost of the Legislation - $5029 per tax return filing
The portion of the legislation that should make all tax payers pause was not widely discussed in the media. This legislation increased the statutory limit on the United States public depth to $11.3 trillion dollars.
What is your portion of the National Debt, NOT including this current legislation?
As of the publish of this post $76,342 per individual tax payer Including Public Law 10-343: $82,776 per individual tax payer
We realize that some tax payers pay more than others, but this should give you pause on the size of the problem we face. We hope you take a moment to think of the countries that have purchased this debt secured by the individual American tax payer. Governments ideologically opposed to the United States . The National Debt Clock is posted on the right hand side of this blog for your reference.
The issue of a Congressional economic bail out is an obviously important issue for all Americans and our economy. HR 3997 is a significantly better bill than was initially presented by the House or by Treasury Secretary Paulson. There is a fundamental bookkeeping problem with the liquidity of the assets that is making the problem more severe than it needs to be. I think this must first be addressed before we address any bailout.
Back after the Enron scandal, the Securities and Exchange Commission (SEC) instituted new regulations that value assets based on the current market value. This was instituted because Enron had numerous false assets on their books. Since banking institutions are running away from sub-prime loans and mortgages, it has forced evaluation to show zero assets, when in fact, many of the loans are being paid and there is marketable houses behind those loans. If the SEC were to institute a three year moving average to value assets, rather than current market trading value, it would immediately relieve more than half of the liquidity problems. I think this should be done prior to any legislation. It would take a $700 bn problem and reduces it to a $300 billion problem.
Another issue I see with HR 3997 is that this bill is strictly a government takeover of the problem, funded by tax dollars. There are no provision for private capital to fund and back the loans. Warren Buffett just invested $5 billion in the market, why should this bail out be backed solely by the taxpayers?
Another issue I have is that there is no provision for oversight of the failing institutions. All oversight is in the Treasury use of bailout funds. I believe there is potential for abuse of the bailout funds on behalf of the failing institutions.
I do like provisions that if the taxpayer capitalization is not paid back after a certain period of time, there is recourse to recoup the differences. However, I believe that executives in these failed firms are not being held accountable, and in fact their compensation would be backed by taxpayer dollars. I disagree with this provision.
I realize that legislation of this magnitude is difficult to pass. I also realize that the need for action to shore up the confidence in our financial institutions is critical for our nation at this time. I am extremely angered from politicians on both sides of the isle trying to use this crisis for political gain. In the end, I would not have voted for this bill in the form presented, because it is still too open ended and is larger than it needs to be. I would urge you to call Mark Udall, Senator Wayne Allard, Senator Ken Salazar and Treasury Secretary Paulson to urge them to contact the SEC and provide relief to the accounting methods that is enhancing the magnitude of this current crisis.
I hope this helps you get some insight to my thought process, and how I view this current crisis. Please feel free to reply if you would like me to expand on this or any other issue.
Respectfully,
Scott Starin Republican Candidate Colorado's Second Congressional District
Important Information On The Current Financial Situation
Allowing an engineer like Scott Starin to visit the National Renewable Energy Laboratory (NREL) and letting him ask technical questions is like watching a kid in a candy store. Renewable energy technology is more than just talk for Scott Starin, it is a passion. Scott is deeply concerned about funding technology to foster renewable energy production, to promote energy conservation, and to increase energy efficiency. Laboratories like NREL fill an assessment need that determines our existing energy dependence, our current renewable energy resources, and our future energy research requirements. Unfortunately, funding for laboratories like NREL have been cyclical with oil price. Scott communicated his firm belief that we have lost valuable time and placed too many obstacles in the way of renewable energy discoveries. He believes the cyclical funding has to stop. The United States needs to keep its technical advantage in renewable energy technology. Scott's concerns that Intellectual Property developed by taxpayer dollars remain protected were addressed by the Executive Director to his satisfaction. The United States must maintain patent integrity, partner with private industry, encourage renewable energy diversity in the marketplace, and match funding with market need.
A variety of renewable energy sources were discussed in technical detail. Scott brought forth the need for better magnet technology which would play a significant role in greater efficiency and productivity of wind power generation. He was pleased at the pursuit of gearless drives and taller wind towers to reach more efficient and consistent wind levels. Scott also suggested that we should follow the lead of European nations and install offshore wind generation. He was also well read on NREL’s impressive new solar cell world efficiency record of 40.8 Percent. The varieties of available Solar Cells turn your rooftop into a power station. On businesses and homes, this solar energy can be a valuable widespread source of renewable energy. Bio-fuels and their accompanying Bio-refineries need also be researched as part of a long term energy strategy. There are other renewable technologies that Scott believes should be developed that are not well known by the American public. These include wave and tidal energy, Bio-Hydrogen, and enzyme investigation which could lead to next the generation of renewable energy for our grandchildren.
Not an NREL Location. Photo Courtesy of Blog Contributor Hana
On the tour, it became clear that energy conservation and energy efficiency are just as important to Scott Starin as renewable energy production. Scott’s research background in energy conversion stressed the inefficiency of single-phase 60 Hz motors. He spoke at length with an NREL researcher about the use of established technology in energy efficient motors applied to home and car air conditioning that can achieve a step change in energy efficiency for the United States. Scott was also impressed by the progress and development of no-motor technologies to cool or heat homes. Applied to cars, these technologies can increase fuel efficiency. Applied to homes, energy efficient cooling systems can lower home owner energy bills. Scott is very supportive of the "Net Zero Energy Concept" for new building construction. To this end, owners and builders can incorporate current NREL techniques, which are architecturally pleasing, to reduce home and business energy demand. Simple items such as recessed windows, use of recycled materials for carpets and walls, low volatile organic chemical paints, radiant heating, and shaded windows can provide incentive for both home builders and home owners. Commercial buildings can benefit from butterfly water drainage architecture, light emitting diode usage in hidden energy drainers (like Exit Signs), and intelligent building technology that automatically detects the need to increase or decrease lighting levels. Even heavy research environments can benefit from energy efficient technologies developed at NREL, like modular “clean rooms” that have application in pharmaceuticals, universities, and many other industries.
Not an NREL Location. Photo Courtesy of Blog Contributor Hana.
With many established and emerging renewable technologies, the critical need Scott sees is bringing these energy supplies to his constituents. The need to fund transmission infrastructure, integrate renewable energy sources into the power grid, and develop energy storage technologies for intermittent energy resources is critical.
Renewable energy technologies must be part of the long term energy solution for the United States. Scott has made clear when he is on Capitol Hill making policy decisions about renewable energy, independent and unbiased laboratories like NREL must be an integral part of decision making. Scott’s background as an engineer is seen as a critical need in the United Stated Congress. Currently, only 3% of the members of Congress have a technical background. The value of having a technical background can be seen when one looks at the spectrum of renewable energy technologies the United States must pursue to gain energy independence.
We encourage you to voice your opinions in the comments link under this blog or with Scott himself at: info@starinforcongress.com. We also encourage you to visit NREL’s Visitor Center and learn about the critical work accomplished at this necessary laboratory.
On the July 31st Senate Floor, minority leader Sen. Mitch McConnell attempted to get Democrats, led by Sen. Ken Salazar, to vote on a gasoline price point that would open offshore drilling. What occurred was a remarkable debate where the price point reached ten dollars a gallon. Still, Colorado’s own Ken Salazar continued to object. The block of this debate and vote on the offshore drilling measure by Democrats was successful. In the offshore drilling debate, perhaps there is some common ground upon which all can agree.
The energy demand from developing nations will continue to increase.
As a country, we can not “drill our way” out of our current oil needs.
Oil and gas platforms require a minimum of three years and a maximum of eight years to bring new oil discoveries into the pipeline.
It will take technology development time to increase alternative energy generation methods to levels that stem our dependence upon foreign oil.
The country needs to eventually transition to entirely renewable energy sources as fossil fuel and other non-renewable resources are depleted.
A sixty percent increase in price in the price of oil (composite oil refiner acquisition cost) took place from June two thousand four to yesterday’s closing cost, approximately four years. This corresponds to a seventy percent increase at the pump in only two years. If the current trend continues, one would extrapolate ten dollar a gallon gasoline in another four years. Hopefully demand finds a stable level for a year or three. We might have eight years until ten dollars a gallon is reality. Perhaps overseas energy demand increases at its current five year average. We would have only three years to ten dollars a gallon at the pump. Can alternative energy technology catch up with world demand in three to eight years? Can Americans wait for ten dollars a gallon to start drilling offshore, knowing that production is still three to eight years away? Should we drill offshore today and buy our families, our economy, and our hard working energy developers some time and breathing room by drilling offshore? Scott’s official position paper states:
“Our current energy policy restricts domestic energy production of clean coal, oil shale excavation and crude oil reserves. Concerns over wildlife habitat have prevented us from accessing reserves that produce over one million barrels of oil a day. Additionally, while everyone looks forward to solar, wind and alternative energy sources, these energy options have storage capacity limitations and can cost 10 to 20 times the cost of nuclear, natural gas and clean coal technologies per unit of energy. Cellulosic ethanol, while promising, is not yet feasible for mass production and is highly corrosive, creating barriers for storage, transportation and consumption” – 6/19/08 Starin Energy Op Ed on Domestic Energy
“We must take a holistic, global view of the realities and impact of oil production. Many of the countries exporting oil to the United States are not using the more environmentally sound technologies we use and they are negatively impacting their environments. However, there are eco-friendly nations, such as Norway, the United Kingdom and Finland, who are drilling their natural resources with great environmental success. We should not be fearful to follow their example.” – 6/19/08 Starin Energy Op Ed on Domestic Energy
Photo Courtesy of Blog Contributor Hana
It’s not all about oil. A subtle rumbling occurred over decade ago that went unnoticed in on Capitol Hill, but a collective gasp was heard in the “oil patch”. As a nation, the United States was no longer natural gas independent. For a decade, independent and corporate oil companies were able to keep our natural gas import levels at twelve percent. However, in the last two years, we have climbed to eighteen percent importation from Canada and Mexico. A great deal of initial production from offshore platforms is gas. It is often a more significant immediate impact than oil. The supply and demand side of the natural gas equation for the United States has changed. There are many home owners who use the lower cost of energy in the winter to supplement the increase in summer price. An energy cost increase in both summer and winter is something the budget of many homeowners can’t afford. However, natural gas demand is something we can actively affect before prices begin a rapid increase. Perhaps minimally, we will be able to stem the tide of importing liquefied natural gas from overseas sources and keep our current levels of importation with Mexico and Canada. We can and should learn the lessons of delay in oil drilling and apply these lessons to natural gas.
Photo Courtesy of Blog Contributor Hana
Maybe the reason for not moving forward with offshore drilling is pure politics. The executive branch ban on offshore drilling was not set to expire until the year two thousand and twelve. President Bush recently lifted this ban. The only ban left is congressional. The congressional ban is set to expire September 30th of this year, before the election. By stopping the vote and letting the ban expire, members of congress do not have to take a stand this election year. Citizens, this gentle expiration into that good night is not leadership. This is not the style of leadership we need in a Congressman and it is not the style of leadership we will ever see from Scott Starin.
Twenty-one eager volunteers walked the 2008 Louisville Labor Day Parade for Scott Starin. Donning their Starin for Congress T-Shirts in the sun, they handed out information about Scott, candy, and stickers. Scott met as many voters as possible and got the chance to empathize with voter’s concerns during backups on the parade route. The volunteers were very pleased at the interest of voters across party lines. Many supporters, whether wearing Obama t-shirts, Udall stickers, or McCain hats were very receptive to having a engineer in congress who doesn’t just speak about energy, but has worked the technical side of energy conversion during his career.
Scott Starin joins Congressional Candidate Bob Straniere in his pledge to hire more wounded military veterans and their families to their congressional staffs.
The Wounded Warrior Workplace Pledge is to hire at least one-third of Scott's congressional staff from the ranks of Americans wounded military veterans or members of their immediate families. The Wounded Warriors Workplace Initiative is open to all wounded military veteran families regardless of where or when they served.
Photo By Blog Contributor Hana
More than 30,000 soldiers have returned with physical and mental trauma from Iraq and Afghanistan. Scott Starin believes members of congress should demonstrate their support by filling an office with these brave men and women. By having wounded veterans and their families as members of his congressional staff, Scott and other members of congress will know first hand the issues facing wounded veterans and increase veteran support.
Bob Straniere has established a dedicated campaign fund for Americans to support the effort immediately where 100% of these funds will go towards the salaries and expenses of these campaign wounded warriors and their families.
The primary user of hydrogen in the world is the National Aeronautics and Space Administration for use as fuel in the space program. Liquid hydrogen launches vehicles into earth’s orbit and beyond. The space program also has used fuel cells (hydrogen batteries) for decades where the only byproduct is water, which the crew uses for drinking water. In many ways hydrogen is more of a way to store and transport energy than a true conventional fuel. Hydrogen is used for many other things including processing foods, treating metals, and refining.
Many citizens believe that hydrogen is abundant in the atmosphere, but this statement is only partially true. Hydrogen Gas is not found by itself in the earth’s atmosphere as it is lighter than our atmosphere. Hydrogen must be produced from other substances as it is found only in compound form like water, biomass (plants/animals that grow), methane, coal, and petroleum. Some types of algae also give off pure hydrogen gas and are being researched for algae farm possibilities.
The two common methods of isolating hydrogen are electrolysis and steam reforming. Electrolysis is the process by which hydrogen is isolated from water. Electrolysis has no emissions, but is currently large scalable technologies are expensive. Currently the least expensive option, steam reforming produces 95% of the United States hydrogen. Steam reforming separates hydrogen atoms in methane. The two problems with this method of hydrogen isolation are: (1) methane is a fossil fuel and (2) steam reforming results in greenhouse gas emissions. There is a third way of isolating hydrogen using a catalytic reaction of waste aluminum, but it is a highly patented and information protected process.
Benefits of Hydrogen Energy:
Hydrogen has the highest energy content by weight. It contains about three times more energy by weight than gasoline. You can use hydrogen as an energy source in areas where weight or size is of primary concern.
There are currently a little over 200 hydrogen based fuel cell vehicles in the United States.
Energy Security – Hydrogen based energy can assist in lowering our current fossil fuel imports from nations hostile to the United States.
If electrolysis based hydrogen isolation is used, hydrogen energy can help us reduce our nitrogen oxide, volatile organic compound, particulate matter, and other air emissions.
Stabilized Power Economics – As hydrogen is abundant and not intermittent (as solar and wind power) it can adjust with peak and decline in demand to create a more stable power price. Hydrogen fuel cells can be used in conjunction with solar and wind power as a storage mechanism during the night time or lack of wind.
Hydrogen can be used in places where electricity is difficult to transmit.
Creation of high technology jobs is an added benefit of hydrogen power development.
Hydrogen energy, especially in the form of fuel cells, can be a highly efficiently process when compared with the combustion engine.
Hydrogen fuel cells are silent and vibration free with high reliability rates.
There is more design flexibility with a fuel cell than with the transitional combustion engine.
Hydrogen fuel cells have a decent operating temperature range from 80 degrees Celsius to 1000 degrees Celsius.
Obstacles to Hydrogen Energy:
Hydrogen is a very reactive element. It must be completely sealed in order to maintain effectiveness.
Steam reforming separates hydrogen atoms in methane. Methane is a fossil fuel.
Hydrogen separation by steam reforming results in greenhouse gas emissions.
Hydrogen electrolysis takes a large amount of energy to strip the oxygen from the hydrogen.
Hydrogen is odorless and clear. A hydrogen leak would not be detected. As hydrogen must remain pure for a fuel cell, color or odor can not be added.
Hydrogen flames are invisible and radiate little heat. One can approach burning hydrogen without knowledge of the flame.
The mixture range of flammable hydrogen is very large when compared to other conventional fuel sources.
The National Academy of Sciences estimates that the transition to hydrogen vehicles will take multiple decades.
To meet our current fossil fuel demand, the amount of hydrogen produced would have to increase ten fold.
The ability to transport hydrogen in large quantities requires technological breakthrough.
Current storage mechanisms of hydrogen are inadequate for large scale needs and require further scientific investment including: liquefaction, solid state, and compression.
As vehicles have morphed into mini-power plants, multiple fuel cells per vehicle may be required.
Obstacles that are currently published, but are highly debated:
Fuel cells generate a great deal of heat. This is true, but the byproduct of heat can be utilized rather than wasted.
Hydrogen is a highly explosive and therefore unsafe energy development material. This comment is often followed by displays of the Hindenburg or visions of citizens smoking cigarettes while filling their car with hydrogen at a fueling station. It is important to note, that ALL fuels and many items have intrinsically dangerous properties from gasoline, biodiesel, hairspray, and wood dust. Many claim that with proper isolation and education these obstacles can be overcome.
Hydrogen fuel cells are currently not cheap. However, technological breakthroughs have continually lowered the price. Demand for fuel cells is currently specialized vehicle and scientific use.
A hydrogen fuel cell takes more energy to charge than it produces. In other words, the energy balance of a hydrogen fuel cell is negative. This is correct; however, it takes more energy to charge a normal battery than it does to produce it. A hydrogen fuel cell is more storage mechanism more than a true fuel.
Cost of Hydrogen Energy:
The electrolysis process of generating isolated hydrogen is currently an expensive method and has become a stumbling block to wide spread acceptance. To obtain the same amount of energy, it takes six gallons of gasoline to create two lbs of hydrogen. Currently is cost ~$5.00 per pound to produce hydrogen before distribution and tax reduction. For comparison, the cost of gasoline per gallon before distribution and taxes is $1.95 to $2.65 a gallon.
Ethanol is the ingredient of intoxication in alcoholic beverages. It has been used by humans before recorded history. The oldest recorded history of ethanol dates back to the earliest history in northern China where alcoholic residue was found on pottery. Islamic alchemists are the first to record a nearly pure compound in 721 to 873 A.D. In 1796 by filtering ethanol through charcoal, absolute ethanol was first obtained by Johann Lowitz in the United States. The first engine that ran on an ethanol and turpentine mixture was developed by Samuel Morey in 1826.
Ethanol is a renewable resource produced from crops, most commonly corn, although other sources of cellulosic ethanol are currently in development and Brazil mainly uses sugarcane ethanol. It is used as a high-octane blend in petroleum gasoline. The two most common blends of ethanol with petroleum gasoline are E10 (10% ethanol and 90% unleaded gasoline) and E85 (85% ethanol and 15% unleaded gasoline). E10 has been approved for any make or model of vehicle sold in the United States . Although most citizens don't realize it when they fill-up at the pump, almost 46% of America's gasoline contains some ethanol. E85 is approved for use in flexible fuel vehicles (FFV's). FFV's can operate with straight petroleum gasoline or any blend of ethanol.
Benefits of Ethanol:
Production of ethanol creates jobs in local, state, and national levels. It provides a high yield cash crop for farmers. Each ethanol plant creates an average of $110 million dollar a year economic revenue base.
Reduced use of nonrenewable energy resources. For each barrel of ethanol produced, approximately 1.2 barrels of petroleum are displaced.
Ethanol increases the demand for agricultural products that benefit farmers and rural communities. The price for corn has increased by 5% to 10% in areas surrounding ethanol plants.
Ethanol assists in cleaner air and environment as it reduces the harmful emission of fossil fuels including: carbon monoxide, oxides of nitrogen, particulates, and other ozone pollutants.
Use of ethanol displaces imported crude oil. Therefore, it helps to ebb our dependence upon foreign oil sources and assists with national security and energy independence efforts.
The promise of cellulosic ethanol made from non-food products such as corn stalks, paper pulp, wheat straw, rick straw, citrus, woodchips, switchgrass, alge, and more show great promise for overcoming the highly debatable portion of corn based ethanol.
The use of cellulosic ethanol would decrease landfill waste.
Obstacles to Ethanol:
Ethanol has a lower BTU content. Ethanol contains 76,330 BTUs per gallon while diesel fuel contains 128,450 BTUs per gallon, and gasoline contains 116,090 BTUs per gallon. This means more frequent trips to the pump.
Using land to grow an energy crop depletes the land used to grow food. Twenty percent of the nation's corn supply, approximately 3.0 billion bushels, was used in the production of ethanol. This is said to increase food prices around the world.
The amount of clean water, fertilizers, and pesticides used in an increase in corn production are seen as a negative environmental impact. Some of these effects can be overcome with the use of a different feedstock, like switchgrass or algae, which require minimal water (or have no impact on water), no fertilizers, and pesticide use during its rapid growth.
As it picks up water and impurities, ethanol can not travel in pipelines. It must be transported by truck, barge, train, etc. This is more costly and less environmentally friendly solution than a pipeline.
The United States does not have the infrastructure to provide wide distribution to all parts of the country. However, new ethanol plants are in various stage of construction.
There are times when ethanol usage spikes, like in the spring of the year, where the cost of gallon of ethanol is greater than a gallon of gasoline (before being mixed with ethanol) even with government subsidies.
World wide production of ethanol has caused some countries to burn tropical forests in the creation of land for feed corn or sugarcane. This is especially prevalent in Ecuador .
Obstacles that are currently published, but are highly debated:
One highly debated issue is that ethanol has a negative net energy balance. It takes more energy to create ethanol than ethanol itself produces. To be fair, some of the original estimates are based upon 1930's era plants whose primary responsibility was the production of beverage alcohol. Ethanol is often a co-product with other uses of the corn. Only the flow stream used to directly make ethanol should be used, to be factually correct. Dr. Michael Wang of the Argonne National Laboratory finds that for every 1 million BTUs of ethanol brought market only 0.74 million BTUs are used to create it. However, Dr. David Pimental of Cornell University finds that every one gallon of ethanol requires 131,000 BTUs of energy to produce, but only creates 77,000 BTUs.
While approved for cars, there is heated debate in the boating community about ethanol's effects on fuel systems, tanks, and lines in boats. This is due to effects water impurities have on ethanol.
Most consumers are reporting lower gas mileage with both E10 and E85. Others debate that the offset in gas mileage is overcome by the decrease in cost and environmental benefits.
The increased corn growth for use in ethanol and subsequent decreased land use for food crops has caused an increase in American food prices and starvation in impoverished places of the world.
The price of ethanol is low due to government subsidies. Both petroleum and ethanol production are given government subsidies. Some say it is better to subsidize people in Kansas , Iowa , or Oklahoma than in Venezuela , Saudi Arabia , or Russia .
When Rudolph Diesel invented the engine that bears his name, he experimented with many types of fuels including biofuels like peanut oil. However, as petroleum was thought to be cheap and plentiful, the engine was modified to this specific distillate. As petroleum prices continue to rise, the interest in biodiesel has risen with it. Biodiesel is created from vegetable oils and animal fats (long-chain mono alkyl esters, fatty acid alkyl esters, or fatty acid methyl esters). The most common method of biodiesel production is the reaction of methanol with an animal fat or vegetable oil in the presence of sodium hydroxide (lye). Although ethanol can be used instead of methanol, it is more expensive.
Benefits of Biodiesel:
Reduced use of nonrenewable energy resources
Biodiesel used as an additive can reduce emissions. This is especially helpful in meeting the EPA ultra-low-sulfur future diesel requirements.
Biodiesel has fully completed the health effects testing of the Clean Air Act. Biodiesel has a less harmful effect on human health and petroleum diesel.
Emission of sulfur oxide and sulfates (the acid rain components) are nearly eliminated using biodiesel.
Of any transpiration fuel, biodiesel has the highest “energy balance” including planting, harvesting, production, and transportation. Over three units of energy are gained for each unit of fossil energy expended.
Biodiesel reduces unburned hydrocarbons in engines.
Biodiesel can be used to reduce friction within an engine.
Biodiesel can be used as a cetane booster which ignites very easily under compression and can increase performance.
Obstacles to Biodiesel:
Water must be removed from fuel tanks as biodiesel is more prone to algae growth than petroleum diesel.
In cold climate, biodiesel has viscosity problems. If you use a very low blend (less than 5% Biodiesel) these effects can be mitigated.
When compared with petroleum diesel, there is an increase in NO2 that is especially present in older engines. This can be overcome with a catalytic converter.
Biodiesel congeals, separates, and breaks down when in storage for a period of time.
Seals, hoses, wire coating, gaskets, and other similar materials should be inspected regularly due to the variability in biodiesel manufacturing. Pure biodiesel is often used as a solvent because of its corrosive properties; therefore, it can dissolve some plastics, remove paint, oxidize metal, and dissolve rubber.
It is especially important that biodiesel be free of all foreign material.
More frequent oil changes are needed when using biodiesel
Obstacles that are currently published, but are highly debated:
Biodiesel is thicker than petroleum diesel which causes problems at extremely low temperatures. Using the same winterizing agents used for petroleum diesel, you can overcome some of these problems, but it is still recommended to store biodiesel and vehicles using biodiesel in warm location and/or heat the biodiesel tank.
Biodiesel can cause engine performance problems including: piston sticking/breaking, injector choking, elastomer seal cracking/swelling (older engines are especially susceptible), filter plugging, engine lubricant degradation. These issues are often caused by the nature of pure biodiesel as a solvent. Deposits on tank walls, pipes, and inside your engine can be release and cause problems. The switch to low-sulfur and lower blend of biodiesel can also mitigate some these issues.
A position statement was release by a consortium of Fuel Injection Equipment Manufactures (FIE Manufactures) that blends of biodiesel with greater than 5% of biodiesel reduce the service life of fuel injection equipment. FIE Manufactures have disclaimed responsibility for any failures caused by operating their product with biodiesel.
Cost of Biodiesel:
The EIA estimates that the cost of yellow grease developed biodiesel is 75% higher than petroleum diesel while soybean oil developed biodiesel is 225% higher than petroleum diesel. The current capacity for biodiesel in the United State is 60 to 80 million gallons per year according to the National Biodiesel Board. An additional 200 million gallons are available for use, but is currently being directed in other areas. This capacity is not enough to totally wean the United States off its current level of petroleum diesel use.
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