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I appreciate the concern coming from California in regards to
reducing the amount of Carbon used in their fuels.  Help me
understand how producing a carbon neutral fuel like ethanol can be
viewed as being bad for the environment.  Compare regular unleaded
gasoline with an E 10 blend.  Less carbon released into the air.  

There is no direct correlation between midwest crops and
deforestation. Indirect maybe?  What is comes down to is economics.
 Supply and Demand. Farmers in a particular geographical area will
grow what is profitable for them to produce.  Does it really come
down to carbon at all?