Ethanol

The energy policy act of 1992 was the law that accelerated the building of corn ethanol plants. Today there are over 200 plants producing 16 billion gallons per year which represents 10% of auto fuel. 40% of all corn is used to produce ethanol and it is highly subsidized by the government. This was seen as a good way to use renewable fuel for transportation but the cost benefit predictions did not materialize and now the government feels it must keep them operating. Many feel the government is making the same mistake with electric cars.