What more proof is needed that the Energy Returned on Energy Invested of ethanol is negative? They’re losing money and getting corporate welfare to keep the scam going, meanwhile destroying prime topsoil, poisoning the land with pesticides, and eutrophying the Gulf of Mexico (see Peak Soil for details).
This is only part of the article, see the rest here.
Updated: Bioenergy Program for Advanced Biofuels Fact Sheet. June 2014. Taxpayers for common sense.
Large Corn Biofuels Facilities Receiving Taxpayer Funding
The highest payments per project, by far, were awarded to large agribusinesses operating corn and soy biofuels facilities.
This is despite the fact that corn ethanol facilities are not even eligible for funding through this program or defined as an advanced biofuel in any current federal legislation.
Regardless, USDA is still funneling money to this mature industry, in addition to soy biodiesel facilities.
From 2009 to 2014, 21 corn ethanol facilities and three corn oil biodiesel facilities received $60 million in federal subsidies, an average of $2.5 million per project. See Table 2 for more information. The corn ethanol industry has already received more than its fair share of federal subsidies over the past 30 years, including energy and commodity subsidies in the farm bill, production tax credits, import tariffs, taxpayer-backed loans, and infrastructure support. In addition, corn ethanol production is mandated through the federal Renewable Fuel Standard (RFS); more specifically, the RFS mandate requires that 15 billion gallons of corn ethanol be used in U.S. motor gasoline by 2015.
Even though the Bioenergy Program for Advanced Biofuels was intended to spur production of advanced biofuels, as the program’s title suggests, its funding stream reveals a different story. Instead of assisting small, rural residents or small businesses obtain financing to help second-generation biofuels derived from non-food feedstocks get off the ground, the program is instead funneling taxpayer dollars to large, profitable, and well-known agribusinesses. Government funding is also spent on mature biofuels industries like corn ethanol and soy biodiesel, which have enjoyed taxpayer backing for more than 30 years. Now more than ever, taxpayers should not be forced to fund corporate welfare and mature technologies, so the BPAB program must not be renewed in the next farm bill and spending should be reined in until then.
Table 2: Corn Biofuels Facilities Receiving Advanced Biofuels Payments, 2009-14
|Facility Name (* notes the facility produces biodiesel)||State||Feedstock||Total Payments|
|White Energy Inc||TX||corn/milo||$10,442,369|
|Arkalon Ethanol LLC||KS||corn/milo||$9,935,595|
|Western Plains Energy||KS||corn/milo||$8,302,242|
|Kansas Ethanol LLC||KS||corn/milo||$5,914,342|
|Pinal Energy LLC||AZ||corn||$4,651,731|
|Prairie Horizon Agri-Energy LLC||KS||corn/milo||$4,428,160|
|Levelland/Hockley Co. Ethanol (now Diamond Ethanol)||TX||corn/milo||$3,308,326|
|Abengoa Bioenergy Corp.||MO||corn/milo||$3,108,385|
|Bonanza Bioenergy LLC||KS||corn/milo||$3,082,023|
|Chief Ethanol Fuel Inc||NE||corn/milo||$2,308,795|
|Reeve Agri Energy Inc||KS||corn/milo||$1,723,906|
|Nesika Energy LLC||KS||corn||$771,812|
|Central Indiana Ethanol LLC||IN||corn||$482,973|
|Corn Plus LP||MN||corn||$311,081|
|Walsh Bio Fuels, LLC*||WI||corn||$267,030|
|Trenton Agri Products LLC||KS||corn/milo||$231,620|
|Nugen Energy LLC||SD||corn||$98,591|
|East Kansas Agri-Energy LLC||KS||corn||$58,834|
|Cornhusker Energy Lexington, LLC||NE||corn||$14,871|
|Chippewa Valley Ethanol Coop||MN||corn||$14,597|
|Best Biodiesel Cashton, LLC*||WI||corn/soy||$10,487|
|Kappa Ethanol, LLC||NE||corn||$8,693|
|Maple River Energy, LLC*||IA||corn/soy||$7,845|
Large Agribusinesses Receiving Subsidies for Biodiesel Production
Table 3 identifies several large agribusinesses receiving more than $1 million of taxpayer subsidies for biodiesel production. Biodiesel can be produced from corn oil, as noted above, or other feedstocks such as soy or other types of vegetable oil, animal fats, recycled cooking oil, etc. Notable companies receiving taxpayer support from 2009-2013 include the Renewable Energy Group, Louis Dreyfus, Ag Processing, Archer Daniels Midland, MN Soybean Processors, and Cargill Inc. Similar to the generous taxpayer supports corn ethanol has received over the past 30 years, biodiesel companies have also benefited from a $1 per gallon production tax credit for several years, on top of several other federal incentives.
Table 3: Biodiesel Facilities Receiving Advanced Biofuels Payments, 2009-14
|Facility Name||State||Feedstock||Total Payment|
|Lake Erie Biofuels, LLC Dba Hero Bx||PA||multi||$16,842,034|
|Renewable Energy Group, Inc.||IA||canola||$15,308,992|
|Louis Dreyfus Agricultural Industries||IN||soy||$12,468,872|
|High Plains Bioenergy, LLC||OK||animal fats||$11,915,721|
|AG Processing Inc||NE||soy||$11,221,637|
|Mid-America Biofuels, LLC||MO||soy||$10,530,741|
|Paseo Cargill Energy, LLC||MO||soy||$9,690,338|
|Archer Daniels Midland Company||IL, ND||canola||$7,744,279|
|Deerfield Energy LLC||MO||multi||$6,846,753|
|MN Soybean Processors||MN||soy||$5,914,635|
|Owensboro Grain Company, LLC.||KY||soy||$5,668,413|
|Smarter Fuel, Inc.||PA||cooking oil||$5,202,080|
|Incobrasa Industries, Ltd.||IL||soy||$4,897,378|
|FutureFuels Chemical Company||AR||animal fats/soy||$4,661,016|
|Imperium Grays Harbor LLC||WA||canola||$3,849,794|
|Rbf Port Neches, LLC.||TX||multi||$3,710,752|
|E Biofuels LLC||IN||animal fats/cooking oil||$3,440,667|
|Western Iowa Energy||IA||multi||$3,020,233|
|American Biodiesel, Inc||CA||multi||$2,741,786|
|Crimson Renewable Energy LP||CA||multi||$2,703,216|
|Western Dubuque Biodiesel, LLC||IA||canola||$2,569,989|
|Sequential‐Pacific Biodiesel||OR||cooking oil||$2,516,531|
|Midwest Biodiesel Product, LLC.||IL||soy||$2,011,805|
|Green Earth Fuels Of Houston, LLC.||TX||multi||$1,924,678|
|Environmental Energy Recycling Corp.||PA||cooking oil||$1,758,853|
|Scott Petroleum Corporation||MS||multi||$1,726,854|
|Imperial Western Products, Inc.||CA||animal fats/veg oil||$1,654,933|
|Iowa Renewable Energy, LLC||IA||animal fats/veg oil||$1,441,303|
Other Feedstocks Receiving Taxpayer Subsidies
As Table 1 illustrated, projects receiving the last few million dollars of BPAB payments converted either woody biomass, sorghum, or seed waste into biofuels or used anaerobic digesters or landfill gas to power bioenergy facilities. On average, these payments were three to ten times smaller than the average checks sent to corn ethanol facilities. The remaining projects were filed in the unknown category since too little detail was provided by USDA to determine which types of feedstocks are used in the facilities.
For more information, contact Taxpayers for Common Sense at 202-546-8500.