A number of corn State Senators, Chuck Grassley (R, IA), Joni Ernst (R, IA), Deb Fischer (R, NE), Pete Ricketts (R, NE) and Roger Marshall (R, KS), have written about the financial benefits of ethanol in our gasoline.

Expanding E15 availability lowers gas prices by 20 to 40 cents per gallon on average.

Compared to what, though? See below.

And

E15 is a net positive. We know E15 will lower prices at the pump….

Again, compared to what?

I won’t go into the production costs of cars whose fuel-related seals must be designed to handle the corrosive nature of ethanol, nor will I address the maintenance costs of cars burning ethanol-laced fuels, even with those corrosion-resistant (but only resistant) seals, nor why the percentage of ethanol in gasoline tops out at 15% before ethanol’s corrosive nature overwhelms even these toughened up seals.

I won’t mention, either, the increase in the cost of food, including meat, from the diversion of corn away from the grocery store or the production of animal feed toward the production of ethanol. I’m only going to mention the immediate fiscal costs to the consumer of ethanol-laced gasoline, taking corn-based ethanol, corn being the primary source today for ethanol production, as my illustration.

It costs $1.74 in 2001 currencyto produce a gallon of ethanol from corn, and it costs 95 cents to produce a gallon of gasoline.

A gallon of E15 gasoline consists of 85% gasoline, and 15% ethanol. According to my 3^rd grade arithmetic, the costs embodied in that gallon are 85% of $0.95 plus 15% of $1.74, or a skosh under $0.81 plus a skosh over $0.26. That’s $1.07 per gallon of the hybrid fuel. Using my 3^rd grade arithmetic again, that’s $0.12 per gallon more than for unadulterated, and much easier on the car, gasoline.

That’s not cheaper fuel for our cars; it’s much more expensive. Those Senators bragged that

Expanding E15 availability lowers gas prices by 20 to 40 cents per gallon on average. That could mean around $400 per year in savings for a US household—precious dollars that could be spent on other needs.

The irony in that isn’t lost on me, even if it seems lost on those Senators. Instead of those 30 cents per gallon (to take the middle of their range) in ethanol-laced gasoline, not having to spend that baseline of 12 cents extra per gallon at all, all year long, would save roughly $160 per US household—precious dollars that could be spent on other needs, like food, including meat, made cheaper by no longer diverting corn to making alcohol. (OK, a little mention.)