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renewable-fuel-standard  rfs34  e1534  ethanol  consumers 

Jack Gerard

Jack Gerard
Posted March 3, 2016

The RFS was in the spotlight again last week, as the Senate Environment and Public Works Committee conducted an oversight hearing on the policy. It’s a law that certainly invites scrutiny due to the significant and wide-ranging damage it causes. Besides raising the consumer price index for food by 25 percent since 2005 because ethanol production has diverted nearly 40 percent of the U.S. corn crop from food to fuel, the policy is also bad for drivers and the economy.

In testimony before the committee, Lucian Pugliaresi, president of the Energy Policy Research Foundation, Inc. (EPRINC), shared EPRINC’s conclusion that continuing to administer the RFS as written “would increase gasoline prices from approximately 30 cents to 50 cents a gallon” and cautioned Congress to address “the risk to economic recovery” this poses. 

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renewable-fuel-standard  rfs34  ethanol  economic-impacts  consumers 

Mark Green

Mark Green
Posted February 23, 2016

When Congress and the president acted late last year to end the decades-old ban on domestic crude oil exports, Washington showed it could generate the consensus to update energy policy so it matches America’s new energy reality, a reality of abundance created by surging domestic oil production. The same kind of change is needed on the broken Renewable Fuel Standard (RFS).

We saw how the crude oil exports ban buckled under the weight of economic research and reason, both of which argued that allowing U.S. oil to reach global markets would be good for America and American consumers. In the case of the RFS, there’s a compelling opportunity to protect U.S. consumers from potential harm wrought by a bad public policy.

Step No. 1 is a scheduled hearing this week on the RFS by the Senate Environment and Public Works Committee. Witnesses include EPA and U.S. Energy Information Administration officials. Frank Macchiarola, API group director of downstream and industry operations, discussed the stakes in the RFS debate during a conference call with reporters. The main point: The RFS is mismatched for the new era of U.S. energy abundance.

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crude-oil  taxes  economic-impacts  consumers  president-obama 

Mark Green

Mark Green
Posted February 16, 2016

The president’s $10 per barrel oil tax proposal has been out for about a week now, and the analysis from a number of experts – both in terms of politics and economics – could be boiled down to the social media acronym “smh,” which stands for “shaking my head.”

Political analysis first: “The president perennially proposes repealing the oil industry tax credits which Congress annually ignores,” Benjamin Salisbury at FBR Capital Markets toldBloomberg. “It seems overwhelmingly likely that this fee meets the same fate.” ClearView Energy Partners’ Kevin Book said there are “near-zero odds that the Republican-led Congress will grant the president’s request.”

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renewable-fuel-standard  rfs34  ethanol  consumers  epa34 

Jack Gerard

Jack Gerard
Posted January 27, 2016

If the Renewable Fuel Standard (RFS) were a candidate in this election year, its track record would invite landslide defeat.

Editorial boards of major newspapers are now echoing what a diverse coalition of restaurant associationsgrocersproducers of poultry, pork and beefenvironmental non-profits and anti-hunger groups have been saying for years.

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renewable-fuel-standard  rfs34  epa34  blend-wall  consumers  e1534  e8534  ghg-emissions  climate 

Mark Green

Mark Green
Posted November 30, 2015

In finalizing ethanol volume requirements under the Renewable Fuel Standard (RFS), the EPA is basically testing the limits of the ethanol “blend wall” and the potential impacts of breaching it. Unfortunately, the guinea pigs in the experiment are U.S. consumers – their wallets, their vehicles.

That’s what we draw from EPA’s requirements for levels of corn ethanol and other renewable fuels that must be blended into the U.S. fuel supply. EPA officially set requirements for 2014 (two years late), 2015 (a year late) and 2016. Requirements for 2016 are the most significant – 18.11 billion gallons, which is lower than what Congress originally required when it created the RFS, but higher than what EPA proposed in May (17.4 billion gallons).

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analysis  e1534  renewable-fuel-standard  rfs34  consumers  ethanol  epa34  regulation 

Mark Green

Mark Green
Posted July 17, 2015

Lots of people are concerned that increasing the presence of E15 in the nation’s fuel supply could have adverse impacts on devices powered by gasoline.

Studies show E15 can damage engines and fuel systems in cars and trucks that weren’t designed to use it. (Click here for a matrix that shows most vehicles on the road today aren’t recommended for operating on E15 by manufacturers.) Motorcycles and outdoor power equipment could be negatively affected by using E15, too.

That’s a concern of marine engine manufacturers and boating enthusiasts as well.

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analysis  e15-study  renewable-fuel-standard  consumers  e8534  epa34  renewable-fuels-association  ethanol  infrastructure  engine-safety 

Bob Greco

Bob Greco
Posted June 2, 2015

With EPA last week proposing ethanol-use requirements for 2014, 2015 and 2016 under the Renewable Fuel Standard (RFS), the ethanol industry no doubt will keep lobbying to foist increasing amounts of higher-ethanol blend fuels like E15 and E85 on the motoring public. This, despite studies that have shown E15 can harm engines and fuel systems in vehicles that weren’t designed to use it – potentially voiding manufacturers’ warranties – and historically small consumer demand for E85.

A subset of the argument for increased use of higher-ethanol blend fuels is the dismissing of concern that E15 also could damage existing service station infrastructure, including storage tanks, fuel lines and dispensers. Though service station owners and operators indicate otherwise, ethanol supporters say that a new National Renewable Energy Laborary (NREL) report – commissioned by the Renewable Fuels Association (RFA), a big ethanol advocate – found that E15 is compatible with existing equipment. It’s simply not true, and the report has some challenges. Let’s look at a few.

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analysis  renewable-fuel-standard  rfs34  ethanol-blends  epa34  consumers  american-petroleum-institute  jack-gerard  e8534  e1534  e10-blend-wall 

Mark Green

Mark Green
Posted May 29, 2015

With EPA already embarrassingly late in setting requirements for ethanol in the fuel supply for 2014 (due 18 months ago) and 2015 (due six months ago), the agency finally has proposals for those years and 2016 that would continue to drive ethanol use – though not at levels dictated by the Renewable Fuel Standard (RFS).

Top EPA official Janet McCabe called the proposals “ambitious, but responsible.” We’ll agree on the ambitious part – in that it takes a whole lot of something to thread the needle between marketplace realities and the flawed RFS – difficult for the nimblest of bureaucracies, much less a regulatory colossus like EPA.

Unfortunately, EPA comes up short, particularly for 2016. An RFS program that long ago went awry remains lost in the tall weeds of process over substance.

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ethanol  renewable-fuel-standard  federal-government  consumers  fuels  renewable 

Bob Greco

Bob Greco
Posted January 16, 2015

Pacific Standard magazine (PS) has an interesting longread on honeybees in its January issue. While this is not our area of expertise and we can’t judge the veracity of the entire article, there was one part that we had, unfortunately, seen before:

Over a million acres of grassland were converted to crops in five Midwestern states from 2006 to 2011, according to a study by South Dakota State University. … Across the region more than 99 percent of what was originally prairie has been converted, mostly to corn and soy for animal feed, ethanol, and sweetener … Now the entire Midwest, several beekeepers told me, has become a “corn desert.” This has wrought devastation on most anything that used to live in the fields. Monarch butterflies no longer have milkweed for laying eggs. Birds no longer have insects to eat or prairie to shelter in. Native bees are disappearing.

The years 2006 to 2011 are not a coincidence, as the Environmental Working Group (EWG) explains:

After the federal Renewable Fuel Standard was signed into law in 2007, many corn growers decided to plant corn year after year to profit from higher prices, rather than switching between corn and soybeans, for example. This transition has greatly harmed air and water quality.

And apparently bees. But not to worry, the federal government is on the case.

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e1534  ethanol-in-gasoline  renewable-fuel-standard  rfs34  consumers  engine-safety  economic-impacts 

Mark Green

Mark Green
Posted December 16, 2014

Chicago Mayor Rahm Emanuel and his allies on the city council deserve credit for putting a stop – for now at least – to an ill-conceived proposal that would mandate the sale of higher ethanol blend E15 fuel at city service stations.

We say ill-conceived because, as argued here and here earlier this year, the E15 requirement could be full of risk for consumers and small business owners – while mainly benefiting ethanol producers. Recently, AAA urged Chicago lawmakers to vote against the ordinance.

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