We appreciate the good intentions behind the push for renewable fuels. In fact we're diversifying our state's energy portfolio at a rapid rate, but this misguided mandate is significantly affecting Texans' family food bill.
Texas Governor Rick Perry, "Texas seeks EPA ethanol waiver over high food," MarketWatch, April 25, 2008, by Wallace Witkowski
(Governor Perry asked the Environmental Protection Agency for an immediate waiver on the state's requirements under a federal ethanol mandate because of "skyrocketing food costs," according to a release on the state's Web site Friday. Perry asked the EPA to reduce the state's federal renewable fuel standard mandate by 50% for ethanol produced from grain. The governor also noted that the grain-to-ethanol requirement is hurting the state's cattle industry, particularly small family ranches.)
Showing posts with label fuel subsidies. Show all posts
Showing posts with label fuel subsidies. Show all posts
Apr 20, 2008
IBD on ethanol subsidies, winners and losers
Oil companies and meat producers cringed when the Energy Policy Act was signed into law in August 2005. The law mandated refiners blend an increasing amount of ethanol into gasoline mixes, with a minimum annual requirement of 7.5 billion gallons of ethanol in gasoline by 2012.
The Renewable Fuels Standard enacted in December upped the ante to 9 billion gallons of ethanol this year, and mandated 15 billion gallons a year by 2022. The two programs also included vast subsidies for refiners and ethanol producers, by some estimates as high as $1.38 per gallon of the corn-based biofuel.
For oil companies, the rules created an immediate dependence on corn producers and ethanol refiners, led by Archers Daniels Midland ADM and privately owned Poet. For beef producers, it promised a future of soaring feed prices. Corn growers and fertilizer producers read the edict as an all-aboard for the gravy train.
~ Investor's Business Daily, "Fuels Rush In; Ethanol Boom Faces Price Bust," February 11, 2008, by Alan R. Elliott
The Renewable Fuels Standard enacted in December upped the ante to 9 billion gallons of ethanol this year, and mandated 15 billion gallons a year by 2022. The two programs also included vast subsidies for refiners and ethanol producers, by some estimates as high as $1.38 per gallon of the corn-based biofuel.
For oil companies, the rules created an immediate dependence on corn producers and ethanol refiners, led by Archers Daniels Midland ADM and privately owned Poet. For beef producers, it promised a future of soaring feed prices. Corn growers and fertilizer producers read the edict as an all-aboard for the gravy train.
~ Investor's Business Daily, "Fuels Rush In; Ethanol Boom Faces Price Bust," February 11, 2008, by Alan R. Elliott
Subscribe to:
Posts (Atom)
