A key inflationary factor is the Renewable Fuel Standard (RFS), commonly known
as the ethanol mandate.
The study argues that the Renewable Fuel Standard (RFS), commonly known
as the ethanol mandate, is detrimental to both non-ethanol industry corn users and food and fuel consumers.
Not exact matches
As a result, the government of that country has decided to
mandate blending 1 percent of
ethanol into gasoline for the first time.
The Obama administration seems to agree, granting $ 786 million in 2009 for biofuels research and setting up the Biofuels Interagency Working Group to study how best to meet the renewable fuel standard
mandated by Congress that will require increasing the amount of renewable fuels, such
as ethanol, to 36 billion gallons by 2022.
Obama has, however, also been a supporter of
ethanol made primarily from corn — a prominent industry in his home state of Illinois — and recently told farmers he supports federal
mandates to make nine billion gallons (34 billion liters) of
ethanol to use
as fuel this year.
«It takes 77 million years to make fossil fuels and 45 minutes to use
as a coffee cup,» says Cereplast's Scheer, noting that his industry can use the residue of government -
mandated production of biofuels, such
as ethanol from corn.
As Coral Davenport reported in a piece that ran on Sunday, the power of the
ethanol mandate is waning for a variety of reasons — some national, but others within Iowa's boundaries:
As Coral Davenport reported in a piece that ran on Sunday, the power of the
ethanol mandate is waning for a variety of reasons — some national, but others within Iowa's boundaries: Read more...
Market - based principles should guide policymakers away from top - down, government -
mandated ventures such
as the flawed Renewable Fuel Standard — which could force higher
ethanol blend fuels into the national supply, potentially damaging vehicle engines and saddling consumers with repair costs.
However, regular readers are aware that for years I have been deeply skeptical that cellulosic
ethanol as envisioned by — and ultimately
mandated by — the US government will be an economic and scalable fuel option.
The 73,000 gallons of cellulosic produced
as of the end of July is about 1.8 % of the new EPA
mandate (4 million gallons or 6 million «
ethanol - equivalent» gallons).
Also of interest is the political reason why the
ethanol mandate is so hard to get rid of: Rural Republican districts benefit hugely from the market distortion and some alt - fuel fanatics in D.C, such
as Obama, love to stick it to the oil companies regardless of environmental impact.
You bet your bottom dollar the US
ethanol production
mandates were sold to the left
as environmentally sound, but corn isn't exactly grown in bastions of liberaldom now is it.
Mandates and subsidies for fossil - fuel intensive biofuels such
as corn - derived
ethanol are so large that eliminating or reducing them would almost certainly do more than a carbon tax to curb these fuels» artificial price advantage.
We have wasted billions of dollars on such «strong» policies
as coal - derived synfuels; subsidies for the commercialization of wind, solar and electric cars; and worst of all, the
ethanol mandate.
The
ethanol industry, already reeling from a draft plan for cuts in the
ethanol mandate for this year, will now face more pressure
as everyone from conservatives and environmental activists...
As biofuel mandates increase, the ethanol volume required for blending into gasoline will exceed 10 percent — known as the «E10 Blend Wall.&raqu
As biofuel
mandates increase, the
ethanol volume required for blending into gasoline will exceed 10 percent — known
as the «E10 Blend Wall.&raqu
as the «E10 Blend Wall.»
Reform legislation in the U.S. by environmental - leaning Democrats — New Mexico's Tom Udall and Vermont's Peter Welch — is now gathering support in both houses of Congress, aided by an environmental lobby determined to end subsidies to
ethanol as well
as its
mandated use.
The
ethanol mandate was born more than a decade ago of good intentions: to reduce tailpipe emissions
as part of a larger strategy of tackling global warming.
Information is available on the RFS itself,
as well
as problems that have made the program and its
ethanol mandates untenable — like the refining «blend wall,» potential risks to vehicle and equipment engines and impacts on food prices.
The EPA and
ethanol producers celebrated the announcement, but they seem to be the only ones
as most other interest groups oppose the
mandate in its current form.
Tagged
as: corn prices, drought, epa,
ethanol mandate, Gov. Mike Bebe, Gov. Rick Perry, Heavy Truck GHG Rule, Lisa Jackson, RFS, Stephen Johnson, Utility MACT Rule, waiver petition
An
ethanol mandate that causes little economic harm when unemployment rates are low, corn production is high, and China's demand for U.S. corn imports is low could inflict severe harm when the opposite conditions obtain —
as they do today.
But,
as the failed US experience with the
mandated and highly subsidized corn
ethanol program has shown, this has negative side effects on overall farmland utilization and corn prices worldwide.
NERA set up its study that way for good reasons: Despite abundant evidence that RFS
mandates for ever - increasing
ethanol use in the nation's fuel supply are detached from reality, and although it's pretty clear EPA has mismanaged the RFS to the detriment of those obligated to meet its
mandates — the
ethanol industry insists that the program continue
as statutorily set out in 2007.
Do you really not know that the rationale behind policies
mandating ethanol was not
as simple
as you state?
... Consequently, refiners are up against a «blend wall»
as the
mandate forces them to purchase more
ethanol than they can safely put into gasoline.»
Tagged
as: corn, drought,
ethanol,
ethanol mandate, FarmEcon LLC, Jack Markell, Jose Graziano da Silva, Lisa Jackson, Martin O'Malley, National Chicken Council, National Turkey Federation, RFS, USDA, WSDE report
API Downstream Group Director Bob Greco told reporters EPA is right to use its waiver authority to set the requirements below the original congressional
mandate, calling it an acknowledgment of the «market limitations of the
ethanol blend wall» — the amount of
ethanol that can be safely blended into the fuel supply
as E10 gasoline that's standard across the country.
At issue is whether to suspend a five - year - old federal
mandate requiring more
ethanol in gasoline each year, a policy that has diverted almost half of the domestic corn supply from animal feedlots to
ethanol refineries, driven up corn prices and plantings and created a desperate competition for corn
as drought grips the nation's farm belt.
Federal law
mandates that oil companies use 12 billion gallons of renewable fuels such
as ethanol in this year, rising to 15 billion gallons by 2015.
Ben Affleck in a corn suit, Matt Damon dressed like a gas pump, Jennifer Garner employing a British accent and Tobin Bell and his «womb juice» all make an appearance, and, while we can't fault Phin's methods — employing celebs — or for the over-reaching message — that we need Congress to
mandate cars that get better gas mileage — using corn - based
ethanol as the flex - fuel crutch is not going to cut it.
But instead of doing the obvious — tax the damn thing — we go through spasms of destructive alternatives, such
as efficiency standards,
ethanol mandates and now a crazy carbon cap - and - trade system the Senate is debating this week.
The EPA announced yesterday that it would open a 30 day commenting period
as it weighs requests from multiple state governors to use provisions in the Clean Air Act to temporarily suspend the corn
ethanol mandate under the Renewable Fuel Standard: