Did you know that the U.S. Environmental Protection Agency (EPA) has the authority to levy taxes? If you're scratching your head over this tidbit of information, you're not alone.

Here's the issue: A couple of weeks ago, the EPA determined that the amount of cellulosic ethanol that should be included in the nation's gasoline pool should be increased from five million to six million gallons in 2011. The goal is to ensure there is a market for this new fuel that is supposed to be made from switchgrass, wood chips, or other forms of cellulose-rich materials.

The problem is that there is virtually no cellulosic ethanol on the market today. The technology hasn't developed to the point where large quantities of this fuel can be produced.

Still, the oil and natural gas industry is expected to com... more »

In comments filed with the U.S. Environmental Protection Agency (EPA), API today revealed that a Department of Energy (DOE)-funded study shows the vast majority of existing gasoline pumps will fail if used to dispense E15.

E15 is a fuel blend consisting of 85 percent gasoline and 15 percent ethanol. EPA has approved E15 for use in 2007 and newer model vehicles.

The study, which was conducted by Underwriters Laboratories (UL) for DOE's National Renewable Energy Laboratory (NREL), shows that 40 percent of new dispensing equipment designed for use with E10 (today's gasoline) failed tests, and 70 percent of previously used E10 equipment failed tests.

There also is a strong similarity between the materials used in aboveground equipment and underground storage tank systems, leading API to conclu... more »

There's more bad news on the economic front today. The official unemployment rate has climbed to 9.8 percent. An estimated 15 million Americans are out of work this holiday season.

The high unemployment statistics make it even more troubling that the administration has chosen to halt offshore oil and natural gas development in the eastern Gulf, the Atlantic and Pacific for at least the next seven years. As we reported yesterday, opening those areas to development could have created 57,000 high-paying jobs.

The ban on opening new offshore areas to drilling was only one of several news stories and revelations that have raised questions about policy decisions in the past few days:

• Former Vice President Al Gore admitted that he supported ethanol purely for political reasons. "I had a certain... more »

Here is a prime example of what can happen when Congress and the administration tamper with the free market system to impose their will on the American public. Simply put, their meddling can create major headaches for consumers.

At issue is the government's attempt to force-feed ethanol into the nation's gasoline pool. As reported by Reuters, "cellulosic production has not grown as rapidly as Congress had hoped." As a result, the Environmental Protection Agency (EPA) is proposing to lower the cellulosic mandate by 93 to 98 percent below the 250 million gallons set by Congress for 2011.

At the same time, however, the congressional mandate is forcing the need for higher amounts of ethanol in gasoline. To respond to the mandate, EPA is promoting a new fuel - gasoline blended with 15 percent e... more »

Historically, the role of the Environmental Protection Agency (EPA) has been that of a regulatory agency with the mission of enforcing federal environmental laws to protect human health. However, recently, EPA has overreached its authority--moving forward to advance policies absent congressional action that could cost millions of jobs, hurt American consumers and put U.S. businesses at a competitive disadvantage globally.

The agency's recent E15 waiver may damage vehicle engines and void warranties; its push to regulate greenhouse gas (GHG) emissions under the Clean Air Act was described by Sen. Lisa Murkowski (R-AK) as an "economic train wreck"; and EPA's approach to ozone standards could destroy U.S. jobs, raise energy costs and divert capital that could be used to assist economic recov... more »