In the name of reducing greenhouse gas emissions and reducing America’s dependence on foreign oil, the 2007 Energy Independence and Security Act (EISA) mandates that we need to consume 36 billion gallons of ethanol by 2022. EISA also contains a mandate within the mandate for advanced biofuels, with the applicable volume of cellulosic ethanol set at 250 million gallons this year, 500 million gallons in 2012, and ultimately hitting 16 billion gallons in 2022. The problem is, when you look at the monthly production of cellulosic biofuel on the Environmental …
Two of the energy subsidy debates in Washington focus on tax credits for the ethanol and natural gas industries. The growing opposition to the $6 billion ethanol blender’s tax credit became quite clear when the Senate voted 73–27 to remove the subsidy—even though the credit is set to expire at the end of the year. When it comes to natural gas, bipartisan support has been cast to create, expand, or extend preferential tax treatment to subsidize the production, use, and purchase of natural gas vehicles (NGVs), although several Members of …
With gas prices hovering at $4 per gallon, politicians are trying to sell quick fixes that will inevitably end up hurting consumers. The latest attempt is an open fuel standard that would require a certain percentage of new vehicles to be flex-fuel (a combination of gasoline and ethanol or methanol), electric, natural gas, biofuels, or any other power source that is an alternative to your traditional internal combustion engine. Policymakers will attempt to convince the public that open fuel standards encourage competition and will benefit consumers. Consumers won’t be paying …
Ethanol subsidies that are set to expire at the end of this year continue to lose support among the public and in Congress. King Corn, understandably not too happy about this change in public attitude, has launched an extensive lobbying campaign targeting Capitol Hill and beyond. The Corn Farmers Coalition has launched a visible ad campaign in Washington, in addition to revamping its lobbying efforts on Capitol Hill. Featuring the faces of happy corn-growing families carrying messages of the industry’s progress on billboards all throughout the D.C. metro system, the …
Gas prices are on the rise again. The national average is now just under $4.00 a gallon, and it’s sure to rise as the summer driving season rolls near. The pesky detail not often mentioned is that our ethanol policy is a contributing factor toward these higher fuel prices. The United States is the world’s largest producer of ethanol, with Brazil a close second. However, Brazil’s sugar-based ethanol is cheaper, more efficient, and cleaner burning than our corn-based product. Yet special interests have managed a rather sweet deal for our …
Ethanol. Henry Ford called it the “fuel of the future” in the 1920s. Decades later, policymakers put laws in place to increase the amount of ethanol in our fuel supply. Environmentalists and the Midwest sold it as a way to decrease American dependence on foreign oil and a way to reduce greenhouse gas emissions. But it’s accomplished neither and instead become an industry reliant on subsidies, mandates and protectionism. Washington needs to reverse these policies and Senator Coburn’s (R-OK) amendment to repeal the Volumetric Ethanol Excise Tax Credit (VEETC) is …
The Environmental Protection Agency (EPA) is suffering policy schizophrenia. On the one hand, it has ordered automakers to increase fuel efficiency to save the planet from global warming. On the other hand, it is setting higher quotas of ethanol in gasoline, which will decrease fuel efficiency and increase emissions of the greenhouse gases that the EPA claims cause global warming. Both actions will cost consumers and the economy a bundle. The stricter fuel-efficiency standards require automakers to attain a fleet-wide average fuel economy level of 34.1 mpg by model year …
The Environmental Protection Agency’s (EPA) approval to increase the amount ethanol blended into gasoline from 10 percent 15 percent has been controversial. A previous decision by the EPA in October 2010 made the 15 percent blend allowable (but not required) in passenger cars, light-duty trucks, and SUVs that had a model year of 2007 or newer. The EPA recently extended the allowance to include vehicle model years 2001 to 2006. Extending the vehicle list to model years of 2001 and newer just three months after the initial waiver has raised …
Congress isn’t the only entity that knows how to pick winners and losers for energy sources and technologies. The Environmental Protection Agency (EPA) is doing its best to follow suit by imposing new rules on the natural gas industry and providing exemptions to the biomass industry. For natural gas, the EPA evasively posted a new rule on hydraulic fracturing, requiring a company to obtain permits if the company uses diesel when fracking. Hydraulic fracturing, a long-proven process by which pressurized water and other substances are injected into wells to extract …
“Don’t wanna lose it, it’s electric! (Boogie Woogie Woogie)” Those lyrics (from Marcia Griffiths’ song “Electric Boogie,” better known as “the Electric Slide song”) are quite indicative of the Obama Administration’s position on the electric car. No matter how much the market and consumers reject the electric car, the government will continue to push forward with subsidies to produce and purchase the vehicle. Charles Lane wrote about the electric car in Saturday’s Washington Post: [The ad campaign] asks consumers to make an economic and technological leap of faith—just as both …
