Does anyone else still think that there is not an effort to create famine? We already burn 40% of our corn as mandatory ethanol additive to gasoline, now they are going to raise it which causes numerous problems like less food for us and livestock, less food to export, destroying engines, fuel liines and related mechanical components that are not designed for that level of ethanol usage.
Biden: You think it is bad now? Hold my beer!
Biden Administration Quietly Raised Amount of Ethanol Required in Gasoline from Ten Percent to Fifteen, Three Predictable Problems Will Surface Soon
Last Friday the Biden administration raised the mandatory amount of biofuel, specifically ethanol, that must be blended within the U.S. gasoline supply. The previous amount of 10% was raised to 15% by the Environmental Protection Agency (EPA). This is likely to lead to two sets of bigger issues, less food and higher gas prices.
♦ First issue. – The Renewable Fuel Standard (RFS) is a government mandate, passed in 2005 and expanded in 2007, that requires growing volumes of biofuels to be blended into U.S. transportation fuels like gasoline and diesel every year. Approximately 40 percent of corn grown in the U.S. is used for ethanol.
The EPA enforces the biofuel standard by requiring refineries to submit purchase credits (known as Renewable Identification Numbers, or RINs) to the Environmental Protection Agency (EPA) proving the purchases. This enforcement requirement sets up a system where the RIN credits are bought and sold by small refineries who do not have the infrastructure to do the blending process. They purchase second-hand RIN credits from parties that blended or imported biofuels directly. This sets up a secondary income stream, a trading market for the larger oil companies, refineries and importers.
The RIN credit trading platform is similar to what we might expect to see if the ‘Carbon Trading’ scheme was ever put into place.
♦ Third Issue – “Ethanol is a valuable source of octane in finished gasoline, but it is chemically different than petroleum gasoline and cannot be used in concentrations above 10 percent in small engines — like outboard boat motors, motorcycles, lawnmowers, generators or chain saws — or in any cars made before 2001. Complicating matters further, most cars on the road today still aren’t warrantied to run on gasoline with more than 10 percent ethanol.
EPA Raises Amount of Ethanol That Must Be Blended With Gas
Most gasoline sold in the U.S. contains 10% ethanol, and the fuel has become a key part of the economy in many Midwest states. The fuel consumes more than 40% of the nation’s corn supply
“Today’s actions will help to reduce our reliance on oil and put the RFS program back on track after years of challenges and mismanagement,” said EPA Administrator Michael Regan.
The Renewable Fuels Association, an ethanol lobbying group, criticized the retroactive reduction of biofuels targets but said the future requirements would bring certainty back to the renewable fuel standard, help lower gas prices and set a foundation for future growth.
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