Renewable fuels mandate is costing Americans billions

Government prefers you broke and dependent on them, not yourself.  One way to create the dependency is to make sure you do not have the money to spend on yourself.  Instead high taxes, high rent caused by government actions, high water costs, caused by government controlling water—and now government mandating only the use of expensive energy sources, instead of clean, cheap energy.

“Mandates under the Renewable Fuel Standard are displacing much more affordable petroleum fuel with expensive biodiesel. That includes millions of gallons that are imported from overseas. Regardless of your opinions on free trade or globalization, you should look with suspicion on a policy that creates an artificial need for a fuel-rich country to import foreign fuel.

The fact is, American biodiesel production is simply not keeping up with the levels required by the RFS mandate. Yet, the Environmental Protection Agency continues to propose higher biodiesel blending targets as part of the RFS — most recently recommending a biodiesel mandate of 2.43 billion gallons, a 15 percent increase over the previous mark. This plan is unwelcome news to taxpayers. The government appears to be betting the farm on one of the RFS mandate’s biggest flaws.”

We could save billions each year—money to be spent on education, our kids and our lives.  Instead, government wants to waste your money with policies that harm, not help you.  Want to go to a nice restaurant, not a fast food joint?  Get government to end its control of energy.

renewable energy

Renewable fuels mandate is costing Americans billions

by Nan Swift, Washington Examiner,  8/22/18

 

Mandates under the Renewable Fuel Standard are displacing much more affordable petroleum fuel with expensive biodiesel. That includes millions of gallons that are imported from overseas. Regardless of your opinions on free trade or globalization, you should look with suspicion on a policy that creates an artificial need for a fuel-rich country to import foreign fuel.

The fact is, American biodiesel production is simply not keeping up with the levels required by the RFS mandate. Yet, the Environmental Protection Agency continues to propose higher biodiesel blending targets as part of the RFS — most recently recommending a biodiesel mandate of 2.43 billion gallons, a 15 percent increase over the previous mark. This plan is unwelcome news to taxpayers. The government appears to be betting the farm on one of the RFS mandate’s biggest flaws.

Since 2014, the RFS has required more biodiesel to be blended into the diesel fuel supply than is actually produced here in the United States. Last year, EPA data shows U.S. production fell about 120 million gallons short of the RFS biodiesel mandate. This year, production is still lagging behind. These gaps are part of what drives the import of foreign biofuels, which now satisfy about 30 percent of the RFS advanced biofuel mandate.

The other factor driving imports is price. A gallon of biodiesel fuel is both more expensive and less energy-rich than a gallon of regular diesel. It can range from $1.00 to $1.80 more per gallon, so shopping from a global supply is essential to finding the best possible prices. The larger point remains, however, that mandating the purchase and blending of a more expensive product always comes with considerable costs. In the case of the RFS biodiesel mandate, it’s American diesel consumers — truckers, drivers, and even farm-equipment operators — who are footing the bill.

The RFS was never supposed to be a burden on consumers, or a reliable source of revenue for energy producers in other countries. Unfortunately, it has become both.

As the EPA and Acting Administrator Andrew Wheeler consider how to correct and mitigate these harms, it’s worth considering that a better, brighter future for advanced biofuels — and certainly consumers — could exist apart from corn ethanol and even apart from the RFS.

A broken RFS has been our national reality for 13 years. While some tout its success in maturing the corn ethanol industry (albeit at taxpayers’ expense), the RFS has fallen far short where advanced biofuels are concerned, and it’s certainly been a non-factor in advancing American energy security.

With the consumer cost burden of biofuels ever on the rise, the RFS has not delivered on its foundational promises. This out-of-touch mandate demands real, long-term reform.

Nan Swift is federal affairs manager at the National Taxpayers Union.

 

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.