As oil prices climb, corn-based ethanol producers are increasing their
output. Some critics argue that it is just as harmful to the
environment as oil, however:
Plants mothballed during the economic downturn are reopening.
Domestic ethanol production hit record levels last year, topping
13.2 billion gallons, according to the Renewable Fuels Assn. in
Washington. Oil companies including Valero Energy Corp., Sunoco
Inc. and Marathon Oil Corp. that snapped up facilities when the
industry hit a rough patch a few years ago are looking to
expand.
. . .
That's largely because of Uncle Sam. Concerned about U.S.
reliance on foreign oil, federal lawmakers mandated the nation to
quadruple its use of biofuels to 36 billion gallons annually by
2022 from 2008 levels. Corn-based ethanol is assured a
15-billion-gallon share of that market. Plus it's heavily
subsidized. The federal government gives producers a
45-cent-a-gallon tax credit. A number of states provide
