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 December 2, 2013
As EPA opens a 60-day comment period on its proposals for next year’s required ethanol use levels under the Renewable Fuel Standard (RFS), below is a light-hearted reminder that higher-ethanol blend fuels like E15 – which ethanol supporters advocate as a way to meet RFS mandates – pose significant risks for small engines.
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.
Posted November 13, 2013
Bloomberg: U.S. crude oil production exceeded imports in October for the first month since February 1995, the U.S. Energy Information Administration said.
Output averaged 7.74 million barrels a day, the Energy Department’s statistical unit said in its monthly Short-Term Energy Outlook. Crude oil net imports were 7.57 million, down from 7.92 million the previous month.
Horizontal drilling and hydraulic fracturing, or fracking, have unlocked supplies in shale formations in North Dakota, Texas and other states. West Texas Intermediate, the U.S. crude benchmark, has dropped to below $95 from above $110 in September as domestic output reached a 24-year high.
Posted November 11, 2013
The cost of the Renewable Fuel Standard (RFS) hurts American businesses and consumers as ethanol production drives up food prices, higher-ethanol blend fuels get less mileage than conventional gasoline and higher blends can damage to engines both large and small.
The Historic Vehicle Association (HVA) and others associated with classic cars are especially concerned with the impact on engines that weren’t designed for fuels containing ethanol – much less higher-ethanol blends – at a time when ethanol-free fuel is getting harder to find because the RFS-driven ethanol “blend wall” is forcing E0 gasoline out of the market, reducing choice for consumers. More on ethanol and the RFS from their perspective.
Posted November 8, 2013
The U.S. Department of Energy’s flex-fuel vehicle (FFV) fleet apparently isn’t all it’s cracked up to be. A recent inspector general’s report found that DOE has been fueling its FFVs with regular gasoline instead of E85, eliminating many supposed environmental or cost benefits of having a fleet of cars that can use fuel containing up to 83 percent ethanol.
Two of DOE’s sites leased 854 FFVs at an additional cost of $700,000 over a comparable conventional fleet. In 2011, the managers of the cars were granted waivers for more than 75 percent of the vehicles so they could be filled with conventional fuel, “a practice that provided little or no environmental or economic benefit,” the IG said.
Here’s the significance in the ongoing debate over the Renewable Fuel Standard (RFS) and its mandates for ever-increasing ethanol use: Although the ethanol lobby keeps touting the benefits of FFVs and E85, the situation with DOE’s FFV fleet illustrates the fact that even the government, which was mandated to use the product, didn’t want to use it. This is consistent with the experience of the general public, which hasn’t accepted the use of E85 in their FFVs.
Posted November 8, 2013
When corn to produce ethanol requires more growing space, there’s less room for other crops, driving those prices higher. Demand for corn to make ethanol is driving the cost of feed for livestock higher, making meat costlier. And when some kinds of meat rise in price, demand (and thus, price) increases for cheaper meat. The American Frozen Food Institute (AFFI) and the American Meat Institute (AMI) add their voices to the other food industry perspectives on the RFS that we've highlighted in recent weeks.
Posted November 6, 2013
They’re at it again. The ethanol lobby’s biggest voice, the Renewable Fuels Association (RFA), issued a press release last week trying to defend E15, the controversial fuel blend containing up to 15 percent ethanol. Only in this case, RFA was defending against an imaginary argument.
RFA claims the development of new vehicle models that can withstand E15 – which research has shown could damage enginesand fuel systems in models that weren’t designed to use it – “shines a bright light on Big Oil’s long-sustained, detrimental resistance to infrastructure build out.”
It’s an imaginary argument because no one opposed the increasing availability of E15-compatible cars. The problem with E15 is the 95 percent of the vehicle fleet that isn’t built to handle E15 and the retroactive nature of the E15 partial waiver.
Posted November 1, 2013
Last year the National Council of Chain Restaurants (NCCR), the country’s leading organization exclusively representing chain restaurant companies, released a PwC report that detailed the impact of mandates under the Renewable Fuel Standard (RFS) for ever-increasing corn ethanol use in fuel. The report estimated that by 2015 the RFS mandate would increase total costs for chain restaurant owners by up to $3.2 billion per year for every year the RFS remains in effect.