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Discussion Starter #1 (Edited)
You can read the entire article here, but basically what the EPA has said is that oil companies must continue to blend "advanced biofuels", fuels made from non-food products, even though there isn't enough cellulosic ethanol produced in the United States to meet the requirement. The target set by the EPA is 2 billion gallons of fuel even though only 8.65 million gallons of cellulosic ethanol is available from domestic production. The ruling was announced yesterday (08.20.2012).

From the article ... "In its court filing, EPA said its estimates were based on a “reasonably attainable” amount of cellulosic biofuels for 2012. It argued that the fact it offer credits “means that obligated parties always have the means to comply with the cellulosic standard, and at a cost that is predictable."

What this means is that EPA has mandated that US oil companies buy ethanol fuel from somewhere else, Brazil is the most likely candidate, for use in the United States. I suspect we (the American consumer) will see the effects of this ruling at the pump in the next few weeks as the oil companies begin buying ethanol on the spot market. That will increase the demand for ethanol and constrict supplies, which always leads to price increases. Prices may ease later if the companies can get some contract pricing in place, but that isn't going to help in the short-term.

It gets worse though. This year's target was "only" 2 billion gallons. In ten years the target is 21 billion gallons, with 16 billion gallons of that coming from cellulosic biofuels.

Someone correct me if I'm wrong, but isn't the idea to reduce our dependence on foreign energy?


Copper
 

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Someone correct me if I'm wrong, but isn't the idea to reduce our dependence on foreign energy?
You are wrong... the idea is for them to milk us for every cent they can. :poke:
 

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Discussion Starter #4
EPA doubles-down on bio-fuel mandate

They ... Never ... Learn :banghead:

It was reported today that the EPA has raised the requirement for blended bio-fuel over 25%, from 1 billion gallons to 1.28 billion gallons, for 2013.

As if price for corn and diesel are not high enough already.

Read all about it here.


Copper
 

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Discussion Starter #6
It's like the "Healthcare Reform Act"--prices will rise because the suppliers of the product/service are having to increase their cost input to meet the government regulations.

The problem with bio-fuels is we make ours from food stocks ... namely corn. I'm not too keen on having to choose between feeding myself or feeding my car.

I would be much more in favor of bio-fuels if they made them from something useless ... like kudzu or crabgrass ... something like that.


Copper
 

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Don't vote for NOBAMA in 2012, he plans on fuel prices competitive to Europe and other Socialist countries(6.50 to 8.00 dollars). The market (our consumption of gasoline) determines the price of each gallon of gasoline, not some geek with a chip on his shoulder who believes in the Global Warming myth
 

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Our government has a habit of making silly promises, setting unattainable goals and commiting financial blunders. This is just the latest example.
 
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