Nick Smith, December 8, 2002

The U.S. consumes about 20 million barrels of petroleum per day, roughly 1/4 of total world oil production. We import 11 barrels of oil for every 10 barrels produced here. This makes us dependent on a variety of unstable and less than friendly countries in the Middle East and elsewhere. Fortunately, biomass technologies that can turn agricultural products into fuel offer hope that we can satisfy more of our own energy needs. On December 9, I hosted a regional biofuels conference with Rep. Marcy Kaptur (OH-9) to promote greater understanding of the production and use of biofuels.

Few realize how accidental our heavy dependence on oil is. Henry Ford expected ethanol to be a fuel for cars and envisioned even making automobile parts from renewable resources, such as plastics made from soybean extracts. In the mid-1920s, the Standard Oil Company marketed a 25% by volume absolute ethanol in gasoline. Rudolf Diesel ran his prototype diesel engine on peanut oil in 1924. He envisioned that diesel engines would operate on a variety of vegetable oils. Unfortunately, relatively high corn prices and inadequate transportation all but killed early attempts at alternative fuel sources. By the 1940s, low petroleum prices made it the dominant fuel in the U.S.

In the 1970s, the costs of our oil dependence rose. During the Arab Oil Embargo, Agriculture Secretary Earl Butz asked me to be Director of Energy for the USDA, and I became a member of the President’s Oil Policy Committee. It met at 6:30am every Monday with "Energy Czar" Bill Simon over at the White House. Alternative fuels became part of the solution to the crisis. Soon, ethanol blends became gasoline extenders and provided an octane enhancer. We were giving grants and guaranteed loans to build ethanol plants. In 1979, a gas tax subsidy program was added that now waives 51 cents in taxes on each gallon of blended gas/ethanol fuel.

In the 1990s, the Clean Air Act provided a boost to biofuels by mandating the use of oxygenated fuels in urban areas to reduce unhealthy levels of carbon monoxide. Ethanol and MTBEs became the chief oxygenates. Environmental concerns about MTBEs (a petroleum product) have caused EPA to question their use and 17 states to ban them, increasing ethanol’s share of the oxygenate market. Increasing concern about energy dependence, however, continues to boost ethanol use and has led Ford and Chrysler to pledge to produce 250,000 flexible fuels vehicles a year, which run on gasoline or E85 (up to 85% ethanol in gas).

The 2002 Farm Bill added momentum to the use of biofuels by encouraging use, supporting development of biorefineries, educating the public about biodiesel fuel use, and assisting eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems. It also funds new research to improve biofuels.

Bio-energy and bio-based products can help the U.S. utilize domestic energy resources, while holding great promise for our economy and providing new production opportunities for farmers. They will contribute to cleaner air and water while reducing dependence on foreign oil. Research and invention may change the picture, but now the prospects for increased ethanol and diesel fuel from crops is dramatic.

Congressman Nick Smith is a Republican member of the U.S. House of Representatives from Michigan.