Growing Our Bio Fuel and Bio Diesel; Challenges on the Road Ahead

Growing a percentage of our fuel makes sense from a philosophical standpoint and should be implemented. In consideration of the Distribution of Bio-fuels, I do not see any problems in economic terms, which would prevent this ramp up at 10% per year. Until which time we could not grow any more to meet demand.

With card key fuel stations, travel centers, government and truck fleet use the supply will be made available. Blended fuel programs have also been very popular in many states.

Problems I see that no one is addressing are listed below. I am not necessarily suggesting we cannot over come these issues with our current technology or that we should necessarily introduce them now to the public debate, but we need to be thinking here too and make sure our comprehensive strategy takes these issues into consideration.

· Long Term Droughts.

· Over turning soil too much.

· Need for terminator seeds to prevent messing up wild blends of corn.

· Crop failure due to weather or catastrophic wildfires.

· Use of Nitrates downstream in Gulf of Mexico (algae blooms-ecosystem).

· Price Spikes out of control and commodity trader fluctuations

· Profitability in future without government incentives (making them weak now) IE. Reagan speech; “if it moves tax it, stops subsidize it”

Although these challenges seem huge, I believe we have in place the needed solutions to conquer these last hurdles, as listed below:

· Use weather control strategies and transfer technologies from Military

· Monsanto Terminator seed use

· Water rights issues with Canada need to be considered and Underwater aquifers monitoring

· Better seed genetic manipulation to use less water in growing, processing and to use less fertilizers, pesticides and nitrates.

· Separate Commodity sector for Bio fuel blends; all move together as one like an index fund, prevent price spikes.

· Slowly remove the government subsidies on Bio-fuels completely by 2012.

· Taxation strategies of Bio-Fuels must not bankrupt government in its never ending thirst to spend our money.

· Moratorium on new regulations and limits of liability to companies and entrepreneurs involved in growing, refining, cars, components.

We must remember when embarking on such a huge endeavor that the devil is often in the details and thus if we are to change the way America uses our fuel, we must consider the entire production, distribution and financial issues from capital flows to commodity markets. Consider these additional items in the Bio Fuel strategy vision for America as we move from the present period into the next. Think on this in 2006.