Posted September 11, 2014
Mixing politics and energy makes for bad energy policy. Exhibit A: the Renewable Fuel Standard (RFS).
We’ve posted a couple of times (here and here) on EPA’s failure to be on time with its annual requirements for ethanol use, which is critical for refiners to comply with the law. If you missed it, the 2014 requirements were due Nov. 30, 2013, nine months ago. That’s a broken program. Now politics may enter in where it shouldn’t.
Posted August 20, 2014
Other voices continue to weigh in on the higher-ethanol blend fuels, E15 and E85. Three associations representing independent petroleum marketing companies and fuel retail outlets have written the White House, expressing concern for the fuels’ compatibility with the nation’s vehicular fleet and consumer acceptance.
In separate letters to John Podesta, White House counselor for energy and climate policy – the Petroleum Marketers Association of America (PMAA) in one and the Society of Independent Gasoline Marketers of America (SIGMA) and the National Association of Convenience Stores (NACS) in another – the associations caution that pushing more and more E15 and E85 into the fuel supply could cause problems for retailers and consumers.
Posted July 29, 2014
We posted a couple of times on a Chicago proposal to require city service stations to carry E15 (here and here). The good news is that this bad-news idea looks like it’s stuck in first gear. Local reports say a City Council committee took no action Monday after a marathon hearing ran out of gas (their pun, not mine).
The discussion included an E15 claim that’s worth another dose of debunking – that NASCAR’s use of E15 proves its suitability for your car or truck. Michael Lynch, NASCAR’s VP for green innovation, spoke at the hearing:
“We’ve been running now for six million miles, Sunoco Green E15 – which is exactly the kind of street fuel that is being proposed here – with great performance, and no issues whatsoever.”
Sigh. The what’s-good-for-NASCAR-is-good-for-the-family-car line, seemingly impermeable to fact, is a special favorite of the ethanol crowd (that’s Sen. Al Franken joy-riding the ethanol wagon, here). Previous posts debunking the NASCAR comparison here, here and here, but with racing’s 6 million-mile milestone approaching, we’ll take another shot.
Posted July 18, 2014
Check out our new cartoon, which pokes fun at what actually is pretty big drawback with E85, the fuel containing up to 85 percent ethanol that some think is key to salvaging the flawed Renewable Fuel Standard (RFS).
Sure, it’s a cartoon. But it helps illustrate a real dilemma with E85 – its significant fuel economy disadvantage compared to the E10 fuel that’s the staple of the U.S. fuel supply.
Basically, because ethanol is less energy-dense than gasoline, fuel that’s up to 85 percent ethanol gets fewer miles per gallon than fuel that’s only 10 percent ethanol. Here’s a sample search from the Energy Department’s fuel economy comparison tool, which shows this in specific vehicle types – fewer mpg with E85, higher average annual fuel costs.
Posted June 27, 2014
Count the nonpartisan Congressional Budget Office (CBO) among those cautioning that rising ethanol mandates in the Renewable Fuel Standard (RFS) could negatively impact consumers. In a new analysis, CBO says RFS ethanol requirements by 2017 could cause an increase of 13 cents to 26 cents per gallon in the price of E10 gasoline, the most common vehicular fuel used in the U.S., a rise of 4 percent to 9 percent, and an increase of 30 cents to 51 cents per gallon in the price of petroleum-based diesel, or 9 percent to 14 percent.
Posted March 25, 2014
Check out our new ads on the Renewable Fuel Standard (RFS) – including a video that highlights in a humorous way the potential negative impacts for consumers from RFS mandates that force higher ethanol blends into the marketplace.
Unfunny would be seeing boaters left high and (not so) dry because their marine engine conked out, damaged by higher ethanol-blend fuel. Or stranded motorists, or home owners with outdoor equipment ruined by using fuel with more ethanol content than the mower or trimmer was designed to use. These are the real-world stakes in the current debate over the RFS and its ethanol mandates.
Posted March 21, 2014
With winter grudgingly giving way to spring, the guess here is discussion of the flawed Renewable Fuel Standard’s ethanol mandates, higher ethanol-blend fuels like E15 and the “blend wall” will rekindle debate in Congress.
Lawmakers must act, because while EPA has proposed lowering ethanol-mandate levels from 2013, the rule still isn’t final (it was due at the end of November last year) and would only temporarily address potentially harmful impacts of the blend wall – to consumers and the broader economy.
Posted December 10, 2013
EPA held the first of a series of public hearings last week on its 2014 ethanol use proposals under the Renewable Fuel Standard (RFS), during which the National Chicken Council’s Mike Brown observed that the Washington, D.C., hearing basically attracted three groups of people: ethanol producers, corn producers and “the rest of us.”
Quite a bit of truth there. The debate over the RFS finds ethanol backers fairly isolated in arguing that the RFS is fine the way it is and that higher-ethanol blend fuels – like E15 and E85 – should be pushed more aggressively into the marketplace to satisfy the program’s mandates.
The stance has them at odds a number of interests, including consumer and food groups, auto manufacturers, the makers of small-engine vehicles and equipment, turkey and chicken producers, restaurant owners and more. Strikingly, AAA, the venerable travel/motoring organization, has been criticized by Big Ethanol for opposing wider use of E15, which studies have shown could damage engines in vehicles not designed to use it.
Posted December 4, 2013
With the first public hearing on EPA proposals for 2014 ethanol use scheduled Thursday, policymakers should pay attention to how ethanol mandates under the Renewable Fuel Standard (RFS) are affecting regular Americans.
This theme was recurrent during a gathering of diverse, consumer-oriented groups on the eve of EPA’s hearing: RFS mandates are negatively impacting everyday American life, from the fuels we use to the costs of what we eat, and could do additional harm unless Congress takes major action.
Posted November 15, 2013
Before taking a look at EPA’s proposals for 2014 ethanol use announced Friday, first consider a number that must guide the discussion of how much ethanol America’s refiners should be required to blend into the U.S. fuel supply: 132.65 billion gallons. That’s what the U.S. Energy Information Administration (EIA), projects for 2014 gasoline demand.
Do the simple math. Using the government projection, the U.S. supply of conventional E10 fuel (up to 10 percent ethanol), for which the vast majority of cars and trucks on the road today were designed, would require 13.265 billion gallons of ethanol. If the ethanol mandate in the Renewable Fuel Standard (RFS) required more, then you’re running into the ethanol “blend wall” – that is, to satisfy the RFS, refiners would have to blend fuel with higher ethanol content than millions of vehicles are designed to use.