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Oil industry sues EPA over biofuel mandate

Oil industry sues EPA over biofuel mandate

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Old gas pumps, new fuel mandates.

Oil companies are fighting efforts to boost the percentage of biofuels in gasoline. And they’re not the only ones — some green groups are opposed to the biofuels boost too.

The American Petroleum Institute filed a lawsuit this week that seeks to overturn the EPA’s renewable-fuel mandate, which requires that gas contain a minimum percentage of biofuel. There’s particular controversy over requirements for use of cellulosic ethanol, which can be made from crop waste but is not currently being produced in large supply.  From The Hill:

The Environmental Protection Agency (EPA) issued the Renewable Fuel Standard in August, long after the agency’s statutory deadline in November of last year. The industry has repeatedly called the standards unworkable. …

The standards require refiners to use millions of gallons of cellulosic ethanol this year, but the API argues that only 142,000 gallons have been made available to refiners thus far for blending.

Bob Dinneen, president of the Renewable Fuels Association, scoffed at the assertion, arguing that the standard can easily be met.

But the Environmental Working Group opposes the new mandates too. Here’s what EWG Vice President Scott Faber told Congress in July:

To date, the [Renewable Fuel Standard] has failed to deliver the “good” biofuels that could help meet many of our environmental and energy challenges. Instead, the RFS has delivered too many “bad” biofuels that increase greenhouse gas emissions, pollute our air and water, destroy critical habitat for wildlife and increase food and fuel prices. …

To allow [cleaner] second-generation biofuels to gain a foothold in the marketplace, Congress must reform the RFS to phase out the mandate for corn ethanol.

As Mother Jones reported a few months ago, “The only group that really seems to like the new rule is the ethanol lobby.”

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.Find this article interesting? Donate now to support our work.Read more: Business & Technology

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Oil industry sues EPA over biofuel mandate

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What’s the alternative?

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What’s the alternative?

Posted 26 August 2013 in

National

Today, the Washington Post editorialized against the Renewable Fuel Standard, relying on tired, oil industry arguments against the only policy that’s reducing our nation’s reliance on fossil fuel.

But since we’ve already published several posts fact-checking these sort of editorials, we’re not going to dive into the particulars of this column. Instead, we wanted to respond specifically to the Post’s policy recommendation:

The Post editorial board admits that their own preferred policy alternative, a carbon tax, would be difficult (if not impossible) to get through Congress. We wholeheartedly agree. In fact, without the low-carbon alternative fuels supported by the RFS, such as cellulosic ethanol, a carbon tax would be completely unworkable (both politically and economically).

So what’s the Post’s solution? Lawmakers should “choose another policy that encourages conservation and innovation without absurd central planning.” Conveniently enough, they do not offer a second alternative. While it’s easier to simply wish away the complex politics that surround our energy policy, we’re happy to remind lawmakers that the Renewable Fuel Standard already encourages conservation and innovation by helping reduce GHG emissions, making ethanol cheaper than gasoline and spurring the creation of the cellulosic ethanol industry. And while some would like to pretend that the pre-RFS status quo represented a nostalgic time of perfect market competition, we recognize that without the century of subisidies and preferential treatment enjoyed by the fossil fuel industry, alternative fuels face a much steeper uphill climb. The Renewable Fuel Standard is not “absurd central planning.” It’s a market-based solution to a long-standing economic challenge.

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What’s the alternative?

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USA Today: Renewable fuels make a difference

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USA Today: Renewable fuels make a difference

Posted 16 August 2013 in

National

From USA Today:

Congress shouldn’t weaken the Renewable Fuel Standard, which commits our country to using increasing quantities of clean-burning biofuels.

The RFS is one of the most successful energy policies ever. Since it was enacted in 2005, U.S. dependence on imported oil has decreased from 60% to 40% largely because of biofuels. American biofuels are good for our economic security, too. The American ethanol industry supports some 365,000 jobs in 29 states, especially in rural communities. In 2012, the industry contributed $43.4 billion to the gross domestic product, $30.2 billion to household incomes, and $8billion in federal, state and local taxes.

Because ethanol burns cleaner than gasoline, it reduces greenhouse gas emissions by 34% to 59%. Because ethanol costs less than gasoline, it saves motorists more than $1,200 per year.

When Congress crafted the RFS, it built in a great deal of administrative and market flexibility, allowing refiners and gasoline marketers to adjust to changing market dynamics that reduce the supply of biofuels. Last week, the U.S. Environmental Protection Agency (EPA) demonstrated the RFS’ flexibility once again by reducing the requirement for cellulosic (non-grain) ethanol.

Read the full article here.

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USA Today: Renewable fuels make a difference

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INEOS Bio Begins Commercial Production of Cellulosic Ethanol

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INEOS Bio Begins Commercial Production of Cellulosic Ethanol

Posted 31 July 2013 in

National

This morning, there’s a lot of good

news

for second generation biofuels, starting with a significant milestone: At 10am,

INEOS Bio

announced that is it producing the nation’s first commercial volumes of cellulosic ethanol out of its Vero Beach, FL facility. Made from wood waste, this clean burning, environmentally friendly fuel is proof positive that the RFS is working. We are lessening our dependence on oil, diversifying our fuel supply, and reducing our carbon emissions.

 

From the INEOS Bio press release:.

 

The biofuels produced in Florida will anchor the new production of cellulosic ethanol under the U.S. Renewable Fuels Standard (RFS). INEOS Bio is working with other companies and cities globally to use this technology as a new direction for waste disposal and the production of advanced biofuels and renewable power.

 

This news comes on the heel of other excellent news in the world of advanced renewable fuel.

Sapphire Energy

, which uses algae to make fuel,

announced yesterday

that they were paying back their $54.5 million dollar loan from USDA ahead of schedule. On top of this,

Zeachem

, which produced cellulosic ethanol at its demonstration facility earlier this year, announced today that their facility has been approved by the EPA under the cellulosic renewable fuel portion of the RFS, moving them one step closer to commercial cellulosic production as well.

 

An exciting two days for advanced renewable fuel, it is becoming more and more clear that the RFS is doing exactly what it set out to accomplish.

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INEOS Bio Begins Commercial Production of Cellulosic Ethanol

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Study finds no direct correlation between the Renewable Fuel Standard and rising food prices

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Study finds no direct correlation between the Renewable Fuel Standard and rising food prices

Posted 12 June 2013 in

National

Opponents of renewable fuel have tried to claim over and over again that the Renewable Fuel Standard is to blame for rising food prices. But a new study from ABF Economics pours cold water on this false premise. Here’s what you need to know about the RFS and food prices:

  1. The Renewable Fuel Standard (RFS) isn’t directly correlated to food prices.
  2. According to a recent study from the World Bank, rising food prices are actually driven by energy costs, specifically oil. As they put it, “Of all the drivers of food prices, crude oil prices mattered the most.”
  3. Not only has the RFS not been directly correlated to food prices, the Consumer Price Index shows that retail food prices have gone up more slowly since the RFS kicked in five years ago (See Table 1 on page 4 of the report).
  4. The RFS is also helping to lower feed cost for farmers and ranchers, as they work to feed America. Ethanol production results in a byproduct (known as “dried distillers grain” or DDGS) that is used as highly-nutritious animal feed. Higher-quality feed means livestock and poultry producers can use less of it, and DDGS have increased the availability of animal feed by 21 percent compared to the use of corn alone.

Read more from the Renewable Fuels Association on the ABF Economics study.

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Study finds no direct correlation between the Renewable Fuel Standard and rising food prices

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RFS & Environmental Benefits: Our Response to the House Energy & Commerce Committee White Paper

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RFS & Environmental Benefits: Our Response to the House Energy & Commerce Committee White Paper

Posted 24 May 2013 in

National

The bottom line:

Changes to the RFS will only destabilize the current investment environment, slow the development of renewable fuel, and protect the oil industry from competition, effectively locking in our current greenhouse gas emission profile from the transportation fuel sector for decades to come.

According to the EPA, greenhouse gas emissions attributed to transportation accounted for about 31 percent of U.S. CO2 emissions from fossil fuel combustion in 2010, with nearly 65 percent of those emissions stemming from gasoline consumption for personal vehicle use.
Renewable fuel has already displaced petroleum in 10 percent of our gasoline supply, with 13 billion gallons in 2012
In 2012, the use of renewable fuel slashed greenhouse gas emissions by 33.4 million metric tons
The RFS will do even more to reduce oil in our transportation fuel supply and bring increasingly low carbon alternatives to market, so long as it remains in its current form, particularly as the production of cellulosic and advanced renewable fuel increases

Read the full letter to Reps. Upton and Waxman of the House Energy & Commerce Committee on the environmental benefits of the Renewable Fuel Standard.

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RFS & Environmental Benefits: Our Response to the House Energy & Commerce Committee White Paper

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Statement on the Corker/Manchin Bill

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Statement on the Corker/Manchin Bill

Posted 17 May 2013 in

National

Fuels America released a statement today in response to new legislation introduced by Sens. Bob Corker and Joe Manchin designed to chip away at the Renewable Fuel Standard:

The RFS was designed to drive growth in our domestic renewable fuel industry, and it is working. The private sector has made substantial investments based upon the RFS – and it is ready to make more. Changes to the policy jeopardize those investments and send a signal of uncertainty to investors, companies and scientists. Fuels America opposes any effort to modify the RFS.

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Fact Check: Forbes on the RFS

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Fact Check: Forbes on the RFS

Posted 18 April 2013 in

National

In his recent Forbes piece, Robert Bradley harps on tired claims that we’ve tackled before: on E15 and consumer benefits; fuel safety (our friends at RFA said it best!); the role that renewable fuel plays in lowering gas prices; farmers’ ability to feed AND fuel Americans (we’ve taken on the “corn tortilla” confusion before); and the bright future for cellulosic fuels.

Oh, and, there’s plenty of support for the RFS from both sides of the aisle, at the state and national level (contrary to what Bradley claims).

Here’s what Forbes missed, and what you need to know: the RFS is working for consumers, and it’s working well.

 

Ethanol is blended into 97% of gasoline in America
That’s displaced as much gasoline as would have been made from 462 million barrels of imported oil last year
Renewable fuel blending slashed our spending on imported oil by $44 billion in 2012
Ethanol production has gotten increasingly efficient, generating 5% more ethanol from a bushel of corn than a decade ago, while water use has been reduced by 40%
And the renewable fuel industry is supporting thousands of jobs across the country (87,000 last year alone)

 

We could go on and on, but encourage you to visit the Renewable Fuel Association and check out their great round up of the benefits.

In light of all of this evidence, perhaps what Bradley is really trying to say is that the RFS isn’t working. . . for the oil industry. While Americans may want – and deserve – options when it comes to filling up their cars, the oil industry is clinging to it’s long-held monopoly.

When it comes to what benefits Americans, what is really counterproductive are attempts to undermine the RFS, and with it, our chance at fuel diversity.

 

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Fact Check: Forbes on the RFS

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Op-Ed: Confirmations Would Give Energy to Energy

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Op-Ed: Confirmations Would Give Energy to Energy

Posted 17 April 2013 in

National

Monroe: Confirmations Would Give Energy to Energy
Roll Call 4/17/13
By Adam Monroe

We need Gina McCarthy as the next Environmental Protection Agency administrator and Ernest Moniz as the next secretary of Energy. We believe Congress should confirm these leaders so they can ensure Americans continue to have access to clean, affordable energy — and the benefits that energy brings.

When the Renewable Fuel Standard (RFS) was signed into law by President George W. Bush, it was envisioned as a two-part strategy: Renewable fuel and technology companies would bring solutions to market, and oil companies would ensure drivers could use them.

We’ve done our part: Foreign oil imports are down 10 percent. We’ve added $40 billion to America’s gross domestic product. We’re offering blends from E15 to E85 in some parts of the country. But, as energy analyst Daniel Dicker says, “[Oil] refiners don’t make ethanol, so they’re not really all that happy about making E15. What they want to do is make gasoline because that’s what they make money off of.”
Imagine how much broader these benefits will be when the oil companies help get more renewable energy into our fuel mix, out to gas stations and to families. Confirming McCarthy and Moniz will only can help us get to that future.

Renewable fuel, which makes up nearly 10 percent of our current gasoline supply, is already saving consumers a big chunk of their take-home pay.

A study out of Louisiana State University credits the mix of renewable fuel in our gasoline with lowering the average price of a gallon by $0.79, and Iowa State University estimates the savings to be $1.09. Either way, that’s a significant savings — giving consumers more money to save or spend on their families.

These benefits will increase as cellulosic renewable fuel continues to scale up. In May of last year, my company, Novozymes, inaugurated the country’s largest enzyme plant dedicated to biofuels in Blair, Neb. That facility creates enzymes for both advanced and traditional renewable fuel. Funded by $200 million in private investment, our facility created 100 careers and 400 construction jobs.

What we have done in Blair is an example of what’s happening across America. Companies like ours have spent more than $1 billion putting steel in the ground and creating jobs. Advanced renewable fuel facilities are operating in more than 22 states. This advanced biofuel is reinvigorating our local economies and the nation’s, too. It’s being made by American workers, offering them good-paying, stable jobs in a growing industry — in fact, advanced biofuels can help create 800,000 more. We can make that reality sooner if leaders continue to support renewable fuel, as McCarthy has and will.

This cutting-edge technology is possible because of innovation, science and investment, which will be expedited through smart public private partnerships that Moniz has the know-how to put together, and the stability of the Renewable Fuel Standard.

The RFS is the most important policy moving the US toward energy security and fuel diversity. As cellulosic facilities scale up and consumers begin to use higher blends of ethanol such as E15 and E85 fuel, we will employ more people, reduce pollution and save Americans cash at the gas pump because of the RFS.

Unfortunately, the oil industry wants to derail this progress to protect their market share. Oil companies control the lion’s share of the infrastructure needed to integrate renewable fuel into our national gasoline supply, allowing them to stop opposition in a way that many other industries cannot.

President Barack Obama wants to get more renewable fuel to families: With his proposed Energy Security Trust Fund, American drivers can benefit from cheaper gas, cleaner air and improved national security.
Congress wants to get more renewable fuel to America: Last month the Senate rejected in a bipartisan manner an amendment from Sen. Patrick J. Toomey, R-Pa., that would have zeroed out funding for renewable fuel development by the Department of Defense.

Despite this momentum, legislative threats to the RFS remain. We must continue to avoid short-term energy policy changes that imperil America’s communities, families and businesses. Maintaining the RFS ensures that America’s renewable fuel industry — from traditional, advanced or cellulosic sources — keeps growing our economy.

We can get to this future of lower gas prices, more jobs and increased security and investment if the RFS stays unchanged. And the path forward will be smoother if we have leaders who can not only add their voices to the growing chorus of renewable fuel supporters, but have the experience to execute on that vision. McCarthy and Moniz have the backgrounds to help this incredible industry flourish. We hope Congress continues to do the same.

Adam Monroe is president of Novozymes North America, a manufacturer of enzymes, microorganisms and biopharmaceutical ingredients.

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Op-Ed: Confirmations Would Give Energy to Energy

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Newspapers parrot oil industry’s favorite attack lines

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Newspapers parrot oil industry’s favorite attack lines

Posted 21 March 2013 in

National

In the last few weeks, we’ve seen the oil industry’s propaganda machine go into full gear, misleading consumers and the media as to why gas prices continue to surge. Editorials in the Wall Street Journal, the Financial Times and the Washington Times have all piled on, adopting Big Oil’s favorite untruths about the nature of the Renewable Fuel Standard (RFS).

Essentially, the oil industry (and these editorial boards) are claiming that refiners have hit the so-called “blend wall” – that they’re unable to blend any more renewable fuel into the gasoline they produce and must therefore buy Renewable Identification Numbers (RINs) to meet the requirements of the RFS, a cost they say must be passed on to the consumer.

But as usual, this line of attack is a smokescreen, intended to distract from the record profits the oil industry continues to collect all while blocking consumer choice at the pump. So before you read another editorial bashing the only policy we have to reduce our dependence on fossil fuel, make sure you’ve got all the facts:

  1. Oil companies are reaping record profits right now, and they want to protect those profits by shifting attention to biofuels. Last year the five oil majors netted $118 billion in profits, thanks to high gas prices.
  2. The oil industry controls the RINs market because basically everyone trading in the RINs market is an oil refiner, and oil companies only need to use RINs if they refuse to blend ethanol. That’s exactly what they’re doing now – refusing to blend ethanol, because they’ve created the “blend wall.”
  3. Oil created the blend wall by blocking consumer access to E15, which is approved and ready to go. Claims about a “maximum safe limit” are unjustified.
  4. E15 renewable fuel would address any RIN “shortage” and there’s certainly enough ethanol available for purchase right now (at 65 cents cheaper than gasoline).
  5. Since ethanol is cheaper than a RIN, oil companies are actually paying a premium to avoid blending ethanol — and then threatening to make consumers pay for their unwillingness to allow choice at the pump.
  6. Oil was for the RINs market before they were against it. Back in 2007, two major petroleum industry groups threw their weight behind the RINs program – indeed, they insisted EPA create it. Now they’re complaining about a system they wanted:

The rule’s trading program allows refiners and others that do not want to use renewable fuels to buy renewable identification numbers (RIN), or credits from those who exceed the required level of renewable fuels. “The flexibility in the RFS plan is vital in order to integrate ethanol into the gasoline pool quickly and in the most effective way possible,” said American Petroleum Institute spokeswoman Karen Matusic. The EPA has issued a reasonable framework to implement the RFS provisions, said National Petrochemical and Refiners Association Executive Vice President Charles Drevna.

(“Bush officials tout green credentials as EPA rolls out renewable rule,” The Oil Daily, 4/11/2007)

It should be clear now what’s really going on here. Oil companies are threatened by the first viable competition they’ve seen in decades, so they’ll distort and dissemble until they’ve drowned out any opposition to their monopoly on your gas tank. Don’t be fooled.

 

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Newspapers parrot oil industry’s favorite attack lines

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