Is bureaucracy, special interest and money speculators holding back America’s biofuels industry? The goal of biofuels has always been to displace a certain of foreign energy imports and never to totally replace oil as an energy resource. Two things will jump start the biofuel industry in the U.S. First, allow cars to use a greater blend of ethanol to gasoline other than E10. Forget E85. E20 will do the trick and not damage the U.S. vehicle fleet. Second, get going on another fuel source for ethanol other than corn. Cellulosic ethanol research needs funding and focus. It’s the kind of stimulus package that really counts. Also, before lending any more money to the Big Three Automakers, make them produce everyday fuel efficient cars that run on a greater blend than E10. A car that runs on E20 and gets 40 mph on the highway will do wonders in lowering overall fuel costs and foreign imports of oil.

Here’s what Brazil is doing with its ethanol industry in 2009. Hint: It’s just keeps growing.

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