Let's hope this comes to pass, the madness must cease!
Brian
________________________________________________
· David Shepardson
· Detroit News Washington Bureau
Washington — The Environmental Protection Agency is proposing to dramatically reduce the amount of ethanol going into the nation’s gas tanks from what Congress required in a 2007 energy law.
The decision was hailed as a win for motorists, the environment, and the oil and auto industries. For corn growers, it was a clear loss.
The EPA wants to cut to 15.21 billion gallons the amount of corn-based ethanol and other biofuels required next year to be blended with gasoline under the Renewable Fuels Standard. That’s nearly 3 billion gallons below the 2014 target of 18.15 billion gallons set by the law.
It’s the first time since the law took effect that the EPA is exercising its authority to lower the requirements. In doing so, the federal agency acknowledged the current mandate is not feasible.
When Congress passed the law in 2007, experts forecast that U.S. gasoline consumption would continue to rise, which would support correspondingly higher mandates for ethanol production. That hasn’t happened: Gasoline use has remained nearly flat due to more fuel-efficient vehicles, a weaker economy and higher gas prices.
The standard sets requirements for quantities of renewable fuels such as ethanol to be blended into gasoline in increasing amounts each year — but by total gallons, not as a percentage of the fuel.
Most fuel at gas stations now is an E10 blend — 10 percent ethanol and 90 percent gasoline. Because of the mandate that increasing amounts of ethanol be used despite the fact that gasoline consumption is flat, fuel producers were hitting a “blend wall,” in which it became likely that more E15 fuel — which is 15 percent ethanol — would have to be produced.
Carmakers have argued that higher concentrations of ethanol could damage engine components, especially in older cars. They took the fight to the U.S. Supreme Court, which in June declined to hear the case.
Automakers are gradually starting to certify E15 for use in newer vehicles. General Motors Co. and Ford Motor Co. allow its use in newer vehicles. Chrysler Group LLC and many others still don’t approve of the fuel and say it could void warranties. More than 90 percent of vehicles on the road are not approved by manufacturers to use E15.
E15 is roughly 10 to 15 cents per gallon cheaper than E10 but delivers less energy, meaning motorists get slightly worse mileage.
AAA, which represents 53 million motorists, praised the EPA announcement.
“The EPA’s proposal to decrease ethanol requirements will help drivers by preventing a surge in gas prices or the premature expansion of E15 gasoline sales. While we would like to increase the use of alternative fuels, it is a plain fact that the Renewable Fuels Standard’s original targets are unreachable without putting motorists and their vehicles at risk,” said Bob Darbelnet, AAA president and CEO.
But the Renewable Fuels Association, a trade group representing ethanol producers, says more than 40 million miles have been driven on E15 with no known cases of engine damage or liability claims.
The EPA decision may take pressure off corn prices. Prices fell after the announcement, with futures contracts for December-delivery corn dipping 1 percent to $4.22 a bushel.
The EPA has argued that waiving ethanol requirements would have little impact on corn prices. After this summer’s strong corn harvest, prices have fallen in recent weeks to three-year lows.
Corn growers weren’t pleased with the EPA decision. Monte Shaw, executive director of the Iowa Renewable Fuels Association, said, “The EPA proposal turns the (Renewable Fuels Standard) on its head, runs counter to the law and is a complete capitulation to Big Oil. The Obama administration needs to .. decide whether they are serious about cleaner fuels, consumer choice and cutting petroleum dependence, or whether they truly want to adopt the Big Oil status quo.”;
Last year, the EPA rejected a request from eight governors and nearly 200 members of Congress to waive requirements for ethanol after the 2012 drought wilted much of the nation’s corn crop. In addition, a top United Nations official urged the Obama administration to suspend ethanol requirements as fears of worldwide food shortages grew.
Michigan is the nation’s 11th-largest corn producer, harvesting 318 million bushels in 2012, down from 335 million in 2011. Michigan farmers planted an estimated 2.6 million acres of corn in 2013, down about 50,000 acres from the year before.
American Petroleum Institute President and CEO Jack Gerard called on Congress to end the ethanol program completely. Groups affected by higher corn prices — including turkey farmers, chain restaurants and frozen food manufacturers — have joined forces with the oil industry to oppose higher ethanol requirements.
“For the first time, EPA has acknowledged that the ‘blend wall’ is a dangerous reality and that breaching it would have serious impacts on America’s fuel supply and would be harmful for American consumers,” he said. “;
The Alliance of Automobile Manufacturers, which represents Detroit’s automakers and others, praised the EPA move. “This is good for consumers. Automakers support using alternative fuels — after all, we’re bringing so many new alternative fuel vehicles to market. However, our concern is for the many customers who are in older vehicles that were never designed or built to withstand ethanol above E10,” spokesman Wade Newton said.
The EPA will hold a public hearing and take public comments for 60 days before it finalizes the 2014 requirements.
From The Detroit News: http://www.detroitnews.com/article/20131115/AUTO01/311150096#ixzz2mQATaXRD
Brian
________________________________________________
· David Shepardson
· Detroit News Washington Bureau
Washington — The Environmental Protection Agency is proposing to dramatically reduce the amount of ethanol going into the nation’s gas tanks from what Congress required in a 2007 energy law.
The decision was hailed as a win for motorists, the environment, and the oil and auto industries. For corn growers, it was a clear loss.
The EPA wants to cut to 15.21 billion gallons the amount of corn-based ethanol and other biofuels required next year to be blended with gasoline under the Renewable Fuels Standard. That’s nearly 3 billion gallons below the 2014 target of 18.15 billion gallons set by the law.
It’s the first time since the law took effect that the EPA is exercising its authority to lower the requirements. In doing so, the federal agency acknowledged the current mandate is not feasible.
When Congress passed the law in 2007, experts forecast that U.S. gasoline consumption would continue to rise, which would support correspondingly higher mandates for ethanol production. That hasn’t happened: Gasoline use has remained nearly flat due to more fuel-efficient vehicles, a weaker economy and higher gas prices.
The standard sets requirements for quantities of renewable fuels such as ethanol to be blended into gasoline in increasing amounts each year — but by total gallons, not as a percentage of the fuel.
Most fuel at gas stations now is an E10 blend — 10 percent ethanol and 90 percent gasoline. Because of the mandate that increasing amounts of ethanol be used despite the fact that gasoline consumption is flat, fuel producers were hitting a “blend wall,” in which it became likely that more E15 fuel — which is 15 percent ethanol — would have to be produced.
Carmakers have argued that higher concentrations of ethanol could damage engine components, especially in older cars. They took the fight to the U.S. Supreme Court, which in June declined to hear the case.
Automakers are gradually starting to certify E15 for use in newer vehicles. General Motors Co. and Ford Motor Co. allow its use in newer vehicles. Chrysler Group LLC and many others still don’t approve of the fuel and say it could void warranties. More than 90 percent of vehicles on the road are not approved by manufacturers to use E15.
E15 is roughly 10 to 15 cents per gallon cheaper than E10 but delivers less energy, meaning motorists get slightly worse mileage.
AAA, which represents 53 million motorists, praised the EPA announcement.
“The EPA’s proposal to decrease ethanol requirements will help drivers by preventing a surge in gas prices or the premature expansion of E15 gasoline sales. While we would like to increase the use of alternative fuels, it is a plain fact that the Renewable Fuels Standard’s original targets are unreachable without putting motorists and their vehicles at risk,” said Bob Darbelnet, AAA president and CEO.
But the Renewable Fuels Association, a trade group representing ethanol producers, says more than 40 million miles have been driven on E15 with no known cases of engine damage or liability claims.
The EPA decision may take pressure off corn prices. Prices fell after the announcement, with futures contracts for December-delivery corn dipping 1 percent to $4.22 a bushel.
The EPA has argued that waiving ethanol requirements would have little impact on corn prices. After this summer’s strong corn harvest, prices have fallen in recent weeks to three-year lows.
Corn growers weren’t pleased with the EPA decision. Monte Shaw, executive director of the Iowa Renewable Fuels Association, said, “The EPA proposal turns the (Renewable Fuels Standard) on its head, runs counter to the law and is a complete capitulation to Big Oil. The Obama administration needs to .. decide whether they are serious about cleaner fuels, consumer choice and cutting petroleum dependence, or whether they truly want to adopt the Big Oil status quo.”;
Last year, the EPA rejected a request from eight governors and nearly 200 members of Congress to waive requirements for ethanol after the 2012 drought wilted much of the nation’s corn crop. In addition, a top United Nations official urged the Obama administration to suspend ethanol requirements as fears of worldwide food shortages grew.
Michigan is the nation’s 11th-largest corn producer, harvesting 318 million bushels in 2012, down from 335 million in 2011. Michigan farmers planted an estimated 2.6 million acres of corn in 2013, down about 50,000 acres from the year before.
American Petroleum Institute President and CEO Jack Gerard called on Congress to end the ethanol program completely. Groups affected by higher corn prices — including turkey farmers, chain restaurants and frozen food manufacturers — have joined forces with the oil industry to oppose higher ethanol requirements.
“For the first time, EPA has acknowledged that the ‘blend wall’ is a dangerous reality and that breaching it would have serious impacts on America’s fuel supply and would be harmful for American consumers,” he said. “;
The Alliance of Automobile Manufacturers, which represents Detroit’s automakers and others, praised the EPA move. “This is good for consumers. Automakers support using alternative fuels — after all, we’re bringing so many new alternative fuel vehicles to market. However, our concern is for the many customers who are in older vehicles that were never designed or built to withstand ethanol above E10,” spokesman Wade Newton said.
The EPA will hold a public hearing and take public comments for 60 days before it finalizes the 2014 requirements.
From The Detroit News: http://www.detroitnews.com/article/20131115/AUTO01/311150096#ixzz2mQATaXRD
