Supporters of continuing ethanol subsidies are once again using a study out of Iowa State to bolster their case, and once again, it doesn’t.  This year’s study, “The Impact of Ethanol Production on U.S. and Regional Gasoline Markets: An Update to 2012,” is an update to their previous work. In reviewing that work, here’s what the Institute for Energy Research concluded:

"The recent Iowa State study claiming that ethanol production has suppressed the growth in gasoline prices is very misleading. It takes for granted the current refinery capacity and other infrastructure that industry uses to deliver gasoline to motorists, without realizing that federal policies over the years have distorted the development of these markets. Ethanol only survives in the market place at its current leve... more »

E15 – gasoline containing 15 percent ethanol that has EPA approval  – is one of those ideas that looks good on paper but seems headed for problems in the real world. API’s Bob Greco, director for downstream and industry operations, outlined some of them for reporters during a conference call:

• Testing so far shows the higher concentration of ethanol would not be fully compatible with much of the dispensing and storage equipment the nation’s gas stations. A recent API review estimated half of the existing retail outlet equipment isn’t E15 compatible.
• As a result, there could be damage to equipment, safety problems and potential environmental concerns at gas stations.
• Difficulties with E15 getting into the market could erode public support for the nation’s renewable fuels progr... more »

On Wednesday, after the President's speech on energy the following tweet popped up in our Twitter stream:

@whitehouse - Hey, Heather Zichal here with the WH to take your energy questions, send them along

And people did, quite a few actually. The White House team was unable to get to all of them, understandably, so we have decided to help them out. But first we have to address a gross inaccuracy in one of the five answers that they did provide. @wilcoxgolf asked:

@whitehouse why do you not drill in the US? We have enough oil!

to which the White House responded:

@willcoxgolf Last year US oil production reached highest level since 2003, oil cos. sitting on many unused leases http://wh.gov/a2u

The last part is simply not true. The administration only can make this statement by defining actio... more »

On Saturday, February 19th the U.S. House of Representatives passed H.R. 1, the Full-Year Continuing Appropriations Act, for 2011. The Continuing Resolution (CR), which would fund the government through the end of Fiscal Year 2011, includes provisions that limit funding for several Environmental Protection Agency (EPA) actions that have been called prime examples of the agency overreaching its authority. In lopsided votes, the House voted to cut funding to implement EPA's E15 waivers, its decision block to air quality permits that are a requirement for drilling permits on Alaska's Arctic coast, and its rules to limit greenhouse gas (GHG) emissions.

Since the beginning of this year, EPA has been phasing in GHG regulations that are aimed at reducing emissions from stationary sources, inclu... more »

In today's episode, I interview API's Downstream and Industry Operations Group Director Bob Greco about the Environmental Protection Agency's (EPA) decision regarding the amount of ethanol permitted in gasoline. Use the audio player below to listen to information about the article and follow along with the show notes. I hope you find the podcast informative.

00:16 Nearly every gallon of gasoline sold in America today contains ethanol. This alcohol fuel is made primarily from corn here in the United States and blended into gasoline in accord with federal guidelines. Gasoline containing no more than 10 percent ethanol has been in the marketplace for several years. But recently the Environmental Protection Agency (EPA) decided to allow fuel containing up to 15 percent ethanol to be s... more »