UPDATED Steelman: Mo’s ethanol mandate has driven up gas, food prices
State Treasurer Sarah Steelman, a Republican candidate for governor, held a press conference at a St. Louis gas station this morning to outline her proposals for addressing the energy problems and rising food prices in Missouri.
Her key proposal: End the state’s 10 percent ethanol mandate for fuel sold in the state.
“We need to repeal the ethanol mandate because of the unintended consequences its had on the price of fuel and food,” she said.
According to the fact sheet she handed out:
“The price of gas has up nationwide over 46 percent since the enthanol mandate took effect at the federal level in September 2007. In Missouri, the price of gas has gone up approximately 35 percent since the state mandate took effect in January 2008. Additionally, the price of corn has risen by 75 percent, which along with the increase in fuel costs have contributed to rising costs of food for Missouri families…”
Steelman’s stance shows a shift, somewhat, since April, when the Springfield News-Leader referred to her stance thusly:
“State Treasurer Sarah Steelman, (Rep. Kenny) Hulshof’s Republican primary opponent, supports the mandate but has some reservations about government manipulation of the economy
” ‘As an economist, I am very concerned about the use of mandates in a free market system,’ Steelman said in a statement. ‘However, the consequences of our nation’s continued dependence on foreign oil are so far ranging and serious that I support mandates in the short run to help establish a market for renewable fuels.’ “
Steelman also is promising, if elected, to seek the creation of a Missouri Energy Independence Commission, which would “review proposals…(and) allocate tax incentives and tax credits based on merit…”
“I want the people on this commission to be experts in this area,” Steelman said, referring to the development of alternative fuel sources.
Her other key proposal calls for a $500 state tax credit for Missourians who buy flex-fuel or hybrid vehicles.
UPDATE
Here’s the response from Hulshof spokesman Scott Baker:
“This is a classic flip-flop. She was for it before she was against it. Sarah Steelman continues to wage war on Missouri’s farmers because they happen to be in the way of her latest political objectives.
“One thing has been made clear for voters – Sarah Steelman will ensure that gas prices continue to rise, only faster.”


Well, the environment’s gone completely to hell while we’ve been worshipping the “free market”, so I don’t really agree with Steelman’s rhetoric. But corn-based ethanol is driving up food costs and isn’t a long-term solution (or any kind of solution) to any environmental problems, so I agree the mandate should be repealed.