Unachievable Government Ethanol Mandate Drives Gasoline Prices Higher
As noted at Reason 24/7, gas prices are going up, and federal rules mandating the use of ethanol seem to be responsible for at least part of the price hikes. Among the many, many components of theEnergy Independence and Security Act of 2007was a requirement that U.S. use of biofuels increase from 4.7 billion gallons in 2007 to 36 billion gallons in 2022. The number seemed to have been pulled from the air, since nobody can really know what fuel requirements will be years in the future, although continuing growth in demand for gasoline was assumed. In fact, though, gasoline use has slid since the year the law passed, from 3,389,269,000 barrels per day to 3,185,312,000 barrels per year*. And car manufacturers advise against using gasoline blended with more than ten percent ethanol, unless the car was designed for it, which most aren’t. But companies that supply gasoline are still required to increase biofuel consumption, which means ethanol, because that’s what’s available, so …
As the United States Energy Information Administration puts it:
With almost all gasoline in the United States already blended with 10% ethanol (E10), significant increases in domestic consumption of ethanol as required under the RFS2 over future years will be challenging unless higher-percentage ethanol blends can achieve significant market penetration. E10 was the maximum ethanol blend allowed for use in most of the vehicle fleet until 2011, when the Environmental Protection Agency (EPA) approved the use of 15% ethanol blends (E15) in all light-duty vehicles from model years 2001 or later. Many ethanol producers have been approved by EPA to sell their ethanol for blending into E15, but as of August 2012, only one retailer in Kansas had announced that it has E15 for sale.
As with most matters government-ish, there is an odd way around the dilemma of being mandated to sell something that nobody wants to buy. Gasoline companies can purchase “renewable identification numbers” also referred to as “ethanol compliance credits.” Buying ethanol compliance credits is like, well, buying indulgences from the medieval church. And gas producers need a lot of indulgences as the demand for gasoline falls even while requirements for biofuel use rise. Which has driven the cost of credits from a few cents last year to over a dollar in recent weeks.
That’s a big hike in the cost of production for gasoline companies even as demand drops.
U.S. Energy Information Administration
As the New York Times reports:
Refiners have been trading so-called ethanol credits furiously in an effort to meet federal environmental mandates, helping to significantly push up the cost of those credits — a jump to more than $1 from a few pennies in the last several days, and drivers are feeling the effects, experts say.
Prices for premium gas are now about 30.2 cents over the price of regular, according to Trilby Lundberg of the Lundberg Survey. That is up from 24.1 cents in 2010 and 18.2 cents in 2000. Any increases could affect about a third of this year’s car models, because premium fuel is required or recommended for them, according to Edmunds.com.
Experts disagree on the reasons for a widening gap between the costs of regular and premium gas. Reasons for the ethanol surplus are even more broadly in dispute, between producers and the oil companies. Gas companies are required under federal law to blend a certain number of gallons of ethanol into the fuel. But refiners argue that some cannot reach that requirement because they are nearing or at the so-called blend wall, the maximum percentage of ethanol in gasoline that most gas stations can handle, 10 percent. They also note that is the maximum level recommended by auto manufacturers for most cars.
Refiners blame Congress, arguing that the ethanol quota was set at a time when gasoline demand was expected to rise steadily. Instead, demand has declined, and refiners, obligated to blend more ethanol than they can actually use, have resorted to buying a lot of ethanol credits, known as renewable identification numbers (or RINs), to meet the mandated levels.
Note that the biofuel mandate also drives food prices up because ethanol is made from corn, which people and animals eat. So fuel mandates are competing with demand for food. The law actually foresaw this problem, by requiring that fuel producers start buying biofuels that isn’t mafe from food crops— the use of 8.7 million gallons was required in 2012. But that generated another problem, since only 20,000 gallons were actually produced. Citing that little glitch, the U.S. Court of Appeals for the District of Columbia vacated the 2012 rules.
The EPA responded by setting 2013 requirements at 14 million gallons.
But, while all of this stupid rulemaking and spiteful bureaucracy is eminently mockable, how does it drive gasoline prices through through roof? As the Times adds:
There are two ways the ethanol credit issue could drive gas prices higher. Mr. Drevna said that refiners would probably seek to recover the cost of the credits, which were a mere seven cents or so at the beginning of this year, in the prices they charge. And Eric G. Lee, an analyst at Citi Research, said that some refiners might seek to avoid the ethanol requirement by exporting their gas, which could tighten supplies in the United States.
Questioning the wisdom of the federal government’s whole biofuel mandate, Jen Alic, at the Christian Science Monitors writes:
Consumer groups are balking at a mandate they think could harm vehicles and leave car-owners stranded without insurance in the case of ethanol-related damage. All the pieces weren’t put into place ahead of this mandate, and insurance companies are balking at the idea that they may have to fork out cash for any damage ethanol might cause to engines.
Unmeetable mandates involving nonexistent products, dynamically shifting markets defying lawmakers’ predictions and costly bureaucratic work-arounds. Mull that over as you watch the numbers spin around at the pump.
And that’s without even getting into the sad fact that the use of ethanol as fuel has driven corn prices high enough to cause riots in Mexico over the skyrocketing price of tortillas.
* I originally wrote “day” because the brain, it doesn’t always work.
Alex Blog: Safety Group Blows Lid on ‘Secret Virus’ Hidden in GMO Crops
Anthony Gucciardi
Infowars.com
Feb 7, 2013Yet another disturbing reason has emerged as to why you should be avoiding health-devastating genetically modified organisms, and it may be one of the most concerning yet. We know that GMO consumption has been linked to a host of serious conditions, but one thing we are not so sure about is the recent discovery of a hidden viral gene deep within genetically modified crops.
For years, GMOs have been consumed knowingly and unknowingly around the globe, with Monsanto and the United States government claiming that the altered franken crops are perfectly safe despite very limited (or virtually none in some cases) initial testing and scientists speaking out against the dangers. One such danger that has actually not been spoken about has been revealed in a recent report by a safety watchdog group known as the European Food Safety Authority (EFSA).
Another Dirty Secret of Monsanto
In the EFSA report, which can be read online, you can find (within the scientific wording) that researchers discovered a previously unknown viral gene that is known as ‘Gene VI’. What’s concerning is that not only is the rogue gene found in the most prominent GMO crops and about 63% of GMO traits approved for use (54 out of 86 to be precise), but it can actually disrupt the very biological functions within living organisms. Popular GMO crops such as Roundup-Ready soybeans, NK603, and MON810 corn were found to contain the gene that induces physical mutations. NK603 maize, of course, was also recently linkedto the development of mass tumors in rats.
According to Independent Science News, Gene VI also inhibits RNA silencing. As you may know, RNA silencing has been pinpointed as vital for the proper functioning of gene expression when it comes to RNA. Perhaps more topically, it is a defense mechanism against viruses in plants and animals alike. On the contrary, many viruses have developed genes that disable this protective process. Independent Science News reports that the Gene VI is one such gene.
Overall, there is a degree of knowledge on Gene VI. What we do know going by information within the report is that the gene:
- Helps to assemble virus particles
- Inhibits the natural defense of the cellular system
- Produces proteins that are potentially problematic
- Makes plants susceptible to bacterial pathogens
All of which are very significant effects that should be studied in depth by an independent team of scientists after GMO products are taken off the market pending further research on the entire array of associated diseases. And that does not even include the effects we are unaware of.
This is yet another incident in which Monsanto and other biotech companies are getting away with an offense against the citizens of the world with (most likely) no action taken by the United States government. What we have seen, however, is nations like Russia, Poland, Hungary, and Peru taking a stand against Monsanto in direct opposition to their disregard for public safety. Russia, in fact, banned Monsanto’s GMO corn variety after it was linked to mass tumors in rats.
As more and more dirty secrets come out from the GMO industry at large, it gives further reason and more support to remove GMOs as a whole from the food supply.
This post originally appeared at Natural Society
Monsanto’s GMO Corn Approved Despite 45,000 Public Comments in Opposition
As previously reported, while people were de-stressing and enjoying their much needed time off during the holidays, the United States Department of Agriculture announced its approval of Monsanto’s ‘drought tolerant’ genetically engineered corn. The decision to give the green light to Monsanto regarding their GE corn didn’t seem too difficult for the Obama Administration, despite receiving nearly 45,000 public comments voicing opposition and only 23 comments in favor since comments opened. Prepare to see this new GE corn unleashed into the environment as well as the American food supply.
How could Monsanto successfully obtain more power and release new genetically modified seeds when opposition so clearly rises above GE support? Monsanto is not simply a company who sells genetically modified products to those seeking them. This massive corporation is actually very much involved with the passing and proposals of regulations concerning the very GM ingredients they are responsible for. You may think those helping to pass the GMO bills truly believe that genetically engineering the food supply is beneficial to public health, but the scary truth is that many of said individuals couldn’t care less about humankind or the future of the planet. As far as many government regulators are concerned, Monsanto can expand to the high heavens as long as financial interests are being properly taken care of.
Hungary Destroys All Monstanto GMO Corn Fields
As my aunt likes to say: Monsanto is the devil.
Click the link for the full article!
“In March, Hungary introduced a new regulation that states seeds must be checked for GMO before they are introduced to the market. However, some GMO seeds made it to the farmers without their being aware of it. As a result, almost 1,000 acres of maize found to have been grown with genetically modified seeds have been destroyed throughout Hungary. The deputy state secretary of the Ministry of Rural Development Lajos Bognar said that the GMO maize has been ploughed under, and pollen has not spread from the maize.”
“The news that Hungary recently destroyed nearly 1,000 acres of corn crops because they were found to be mistakenly grown with genetically modified (GM) seeds should be a major wake-up call to anyone in the United States and elsewhere who believes GM (genetically modified) crops are harmless. The discovery that the farmland was planted with GM seeds came when the season was already underway, so the harvest has been completely lost for this year.”
Way to go Hungary!!!! Now only if the US would wake up….oh wait…or political leaders are bought and paid for.
(via joswpagan)
