A $2.2 billion curse on the American economy.
This is the estimated cost to refiners for having to comply with the government’s program forcing renewable fuels on Americans.
This cost to refiners for buying RINs (Renewable Identification Numbers) is actually a tax on Americans.
The Oil and Gas Journal (OGJ) provided details on how this government program is costing Americans billions of dollars. Money that could be better spent on infrastructure that benefits everyone, not a few.
The Renewable Fuel (Volume) Obligation (RVO) is determined by the EPA annually, and establishes the obligation of refiners.
Quoting from OGJ, “The RVO is expressed in RINs, which attach to every gallon of renewable fuel produced at rates that vary with fuel type. One gallon of corn ethanol, has 1 RIN attached to it. If the producer sells the ethanol, the RIN goes with it.”
When a refiner blends ethanol with gasoline the RINs are separated and go toward the refiner meeting its RVO obligations.
If the refiner has too few RINs to meet this obligation, the refiner must buy the RINs from the open market.
The entire process is extremely complicated. Problems associated with the corrosive nature of ethanol limits where gasoline and ethanol can be mixed, i.e., blended, which creates additional costs.
There is also the problem of cellulosic ethanol not being available. Not only, is it not available, but it’s expensive.
Cellulosic ethanol is another rathole down which the government is throwing tax payer dollars.
The EPA explains, from its website,
“Congress created the renewable fuel standard (RFS) program in an effort to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil.”
Here we have a program that is costing tax payers an exorbitant amount of money, while accomplishing very little, if anything.
There is no need, for example, to reduce reliance on imported foreign oil. Oil imports are decreasing due to increased production of shale oil.
It’s been demonstrated that ethanol doesn’t reduce greenhouse gas emissions, and it’s becoming ever more clear that GHG are not the cause of climate change.
It expands the renewable fuel sector when it’s uneconomic and unnecessary.
And, it uses corn, a food, to produce a product that will be burned. Using corn to make ethanol is a travesty against humanity.
The government created this monster of a program and encouraged farmers to participate in it.
Since the program is unnecessary, it needs to be disbanded in a way that minimizes harmful impacts on farmers.
The RFS program is an excellent example of government interference with free markets. The RFS program harms everyone by wasting tax payer money and encouraging farmers to invest in a useless, and some could say prejudicial activity, i.e., corn for ethanol.
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Nothing to Fear explains why CO2 isn’t to be feared. Chapter 15, An Alternative Hypothesis, describes Dr. Svensmark’s hypothesis on cosmic rays.
Nothing to Fear is available from Amazon and some independent book sellers.
Link to Amazon: http://amzn.to/1miBhXy
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