Filed under: Ethanol, Legislation and Policy, USA



Let's start by stating that even the EPA admits that the US may have hit the blend wall, the point where we just can't use any more biofuel, despite laws that require biofuel producers to keep on making it. In fact, when the agency announced the 2013 level for the Renewable Fuel Standards - 16.55 billion gallons - it said that it may try to get the Clean Air Act changed so that biofuel producers in the US aren't making more than we can use. The biofuel level has consistently increased by around 1-2 billion gallons a year the last five years.

But now here comes Big Oil (represented by the American Fuel & Petrochemical Manufacturers and the American Petroleum Institute), ready to fight to reduce the trend. Instead of getting to 18.5 billion gallons in the 2014 (aka RFS2 standards, as will ge required, the oil industry is petitioning the EPA to instead set the level at just over 14.8 billion gallons. Ethanol Producer calls this a "significant" decrease. Big Oil says it's just smart, and that the lower level is "necessary to avoid the severe economic harm that will result from exceeding the 10 percent ethanol blendwall." The joint PR statement, available below, also says that higher concentrations of ethanol are "incompatible with today's engines, vehicles and the multi-billion dollar infrastructure in place throughout the nation." Thus, "The negative impacts of the RFS will be extreme and will undoubtedly hurt consumers."

They even put a number on that hurt. The two groups say if the "unrealistic requirements" of the RFS take effect, domestic fuel supplies will decrease and, "large increases in transportation fuel costs will ripple through the economy and impose significant costs on society. Unless the RFS volumes required by statute are waived, NERA predicts a $270 billion decline in GDP in 2014, which will grow to $770 billion in 2015."
The biofuel industry point out that Big Oil is on thin ground here, saying that neither the AFPM or API have standing to petition the EPA, since the Clean Air Act, "clearly states that waiver must be filed by a state government or an obligated party to prompt EPA action. As trade organizations, neither the AFPM nor API fits that definition." Growth Energy CEO Tom Buis went further, telling Ethanol Producer, "It is time that oil companies and special interests stop worrying about maintaining their monopolistic practices and allow competition and choice in the marketplace. Not only should we provide consumers a choice and savings at the pump, we must stop putting our eggs in one basket when it comes to a national energy policy."
Continue reading Big Oil takes a stand against rise in 2014 biofuel mandate

Big Oil takes a stand against rise in 2014 biofuel mandate originally appeared on AutoblogGreen on Thu, 15 Aug 2013 12:01:00 EST. Please see our terms for use of feeds.



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