U.S. and EU Biofuel Mandates Tighten Grip on Energy Producers

  • 09/24/13
  • AEA
  • Facts
This is Part 2 of a three part series comparing biofuel mandates in the United States and European Union. Part 1, which focused on rising food prices, appeared yesterday. Part 3 will be published tomorrow. Despite what the ethanol industry would have you believe, biofuel mandates place unrealistic and ever-rising burdens on energy producers. In America, for example, the Renewable Fuel Standard (RFS) will soon require oil refiners to blend more ethanol into gasoline than the nation’s fuel...
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Biofuel, Biokraftstoff, Biocarburants: Bad News in Any Language

  • 09/23/13
  • AEA
  • Facts
This is Part 1 of a three part series comparing biofuel mandates in the United States and the European Union. Part 2 will be published tomorrow.  Biofuel mandates are harmful for a whole host of reasons, not the least of which is that they raise food prices . In the U.S., for instance, the Renewable Fuel Standard (RFS) makes corn, America’s most abundant crop, more expensive by requiring refiners to blend increasing amounts of corn-based ethanol (and other biofuels) into gasoline. The...
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Lies, Damned Lies, and NRDC's Magic Math

  • 09/13/13
  • AEA
  • Facts
An old adage often attributed to Mark Twain identifies three kinds of lies: “lies, damned lies, and statistics.” In a recent blog post, the National Resources Defense Council (NRDC) shows why this axiom stands the test of time. NRDC claims that “AB 32 , [the California Global Warming Solutions Act] including the Low Carbon Fuel Standard, will save California consumers and businesses $50 billion over the next decade in fuel costs.” This statement is not just misleading, it is just...
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KiOR's Troubles Deepen

  • 09/11/13
  • AEA
  • News
On these pages we have already described the absurdity of the EPA’s cellulosic ethanol mandate, which is literally impossible for refiners to satisfy. EPA’s 2013 mandate was based on their projections of the cellulosic ethanol output coming from two particular plants, one of them being a KiOR plant based in Columbus, Mississippi. Yet unfortunately for refiners—who will face penalties for not obeying the mandate—KiOR missed its second-quarter production forecast by a whopping 75...
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Fact Check: Fuels America's RFS Ad Campaign

  • 09/09/13
  • AEA
  • Facts
Fuels America trotted out a series of stale, debunked talking points in a recent advertising campaign extolling the virtues of the Renewable Fuel Standard (RFS). This is one of the latest attempts by the ethanol lobby to conceal the truth about ethanol as Congress considers changing or repealing the federal ethanol mandate, which requires refiners to blend greater and greater amounts of ethanol into gasoline. The Institute for Energy Research (IER) has compiled a list of claims and...
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Ethanol, Corn Prices, and RINs, Oh My!

  • 08/26/13
  • AEA
  • News
What do ethanol mandates, corn prices, and renewable identification numbers have in common? The answer is the Renewable Fuel Standard that was first passed in 2005 and then increased in 2007 when the Energy Security and Independence Act was enacted, requiring specified annual amounts of corn-based and cellulosic ethanol to be produced and blended into gasoline. The outcome of this poorly conceived legislation is skyrocketing corn and food prices, a blend wall where ethanol blended into...
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Sorry Ethanol Lobby, RFS Does Not Promote “Free Markets”

  • 08/14/13
  • AEA
  • News
Growth Energy, an ethanol industry group, issued a misleading statement yesterday in response to news that refiners requested a partial waiver of the 2014 Renewable Fuel Standard (RFS). The headline reads, “Big Oil Files Waiver to Cap Ethanol, Block Free Market Competition.” There is nothing “free market” about requiring someone to purchase a product, but that is exactly what Growth Energy claims. The RFS requires refiners to blend increasing amounts of ethanol into gasoline, with...
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As Economy Lags, Shale Boom Spurs Rapid Job Growth

  • 08/14/13
  • AEA
  • News
While most of the U.S. economy endures a slow recovery process, the energy sector continues to flourish. Job opportunities in oil and natural gas increased by 40 percent from 2007 to 2012, according to new data from the Bureau of Labor Statistics.[i] Compare this to just 1 percent growth for total private-sector employment over the same period.  The key to this job growth has been the boom of domestic energy production on state and private lands. In 2012, the U.S. recorded the largest oil...
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E85 Can Break the Bank, but Not the Blend Wall

  • 08/12/13
  • AEA
  • News
The Environmental Protection Agency (EPA) recently increased the amount of ethanol refiners must blend into gasoline under the Renewable Fuel Standard (RFS), despite repeated warnings  that the U.S. cannot handle higher ethanol concentrations. While the RFS requires blending increased amounts of ethanol into gasoline, most cars are certified to run on gasoline that contains no more than 10 percent ethanol (E10). Breaching this “blend wall” would force refiners to decrease production...
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REINing in Obama’s Regulatory Train Wreck

  • 07/30/13
  • AEA
  • News
The House this week is considering two pieces of legislation designed to increase congressional oversight of the Obama administration’s jobs-killing regulatory agenda. One of the bills specifically targets the Environmental Protection Agency’s (EPA) energy-related rules and mandates. H.R. 1582, the Energy Consumers Relief Act , requires the EPA to submit to Congress a detailed analysis of the economic impacts of all energy-related rules costing more than $1 billion. The bill, introduced...
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