On January 1, 2012, the federal subsidy for corn-based ethanol expired. Most of us have
become accustomed to labels on fuel dispensers indicating the percentage of ethanol in
gas being pumped. Many fuel dispensing facilities in the Midwest, where most ethanol
production occurs, have undertaken equipment upgrades to allow for retailing E85, with
85% ethanol. During the last 3 decades, roughly $20 billion in taxpayer funds have
gone to ethanol producers. Does the end of this subsidy mean the end of ethanol in our
gasoline?

Bruce Babcock of Iowa State University said in an interview on NPR, “Corn ethanol is
really the only lower cost substitute [to gasoline or crude].” As long as the price of oil
remains high, suppliers will continue to buy ethanol as a low cost substitute to gasoline.

So, it appears that ethanol in our gas is here to stay along with all of the considerations
that one must make with respect to dispensing ethanol.

-Brian Yellan, ECS Eclipse Trainer