Oil refineries sue EPA over ethanol plan.

[Ggreen 12]

http://news.yahoo.com/s/ap/20110104/ap_on_re_us/us_epa_ethanol

By KEN THOMAS, Associated Press Ken Thomas, Associated Press 2 hrs 17 mins ago

WASHINGTON A ruling by the Obama administration allowing the sale of gasoline containing 15 percent ethanol is running into legal hurdles from trade groups opposing the plan.

The National Petrochemical and Refiners Association sued the Environmental Protection Agency on Monday over the decision to allow the sale of gasoline containing higher blends of corn-based ethanol, the second major group to protest the ruling.

The Obama administration said in October that gas stations could start selling the ethanol blend for vehicles built since the 2007 model year, increasing it from the current blend of 10 percent ethanol. The decision has been criticized by boosters of ethanol who say it doesn't go far enough and by engine manufacturers who contend it could damage engines in vehicles, boats, snowmobiles and outdoor power equipment such as lawnmowers and chainsaws.

The refiners group asked a federal appeals court to overturn the decision, arguing that the EPA does not have the authority under the Clean Air Act to approve a plan for fuels used in some engines but not others. The trade association also said EPA based its decision on new data submitted shortly before the ruling, failing to give the public a chance to review it.

Charles T. Drevna, the NPRA's president, said Monday the EPA had "acted unlawfully in its rush to allow a 50 percent increase in the amount of ethanol in gasoline without adequate testing and without following proper procedures." His group was joined in the lawsuit by the International Liquid Terminals Association and the Western States Petroleum Association.

EPA spokesman Brendan Gilfillan said the agency had not reviewed the lawsuit. The EPA "based its decision on allowing E15 in newer cars and will base whatever decision we make on model year 2001-2006 cars on a comprehensive review of extensive testing data and on the law," he said. "We are confident it will withstand legal challenge."

The EPA is expected to consider the higher ethanol blends for vehicles built from 2001-2006 this year.

EPA has said a congressional mandate requiring increased ethanol cannot be met without the higher blends. Congress has required refiners to blend 36 billion gallons of biofuels, mostly ethanol, in automotive fuel by 2022.

http://news.yahoo.com/s/ap/20110104/ap_on_re_us/us_epa_ethanol

Edited January 4, 2011 by Nightracker

[Bad_Daddy 2,209]

Gotta love it. The oil company's have been literally screwing the entire world and now the greedy pr*cks are crying the blues over this ? They should just start publicly hanging oil execs imo.

[lostinblue 1,989]

http://zfacts.com/p/438.html

The Wholesale Price of Ethanol

Why ethanol always costs 50% more than gasoline (per mile driven)

"We would normally expect the spot price of ethanol to exceed the wholesale spot price of gasoline by about 50 cents per gallon, the amount of the ethanol tax credit." (DOE) This statement from the US Dept. of Energy is the key to understanding wholesale ethanol prices. Here's how they work.

Blenders will pay 51¢ more per gallon for ethanol because they get a 51¢ blenders credit from the federal government. So if wholesale gas is $1.50, blenders will pay $2.01 for ethanol. However, since it really costs them only $1.50 (after the subsidy), they will sell it as if $1.50 were the wholesale price. So far, no harm to the consumer (only to the taxpayer who paid the subsidy).

But the reason blenders (and gas stations) will pay (after subsidies) the same for ethanol is because they can sell it at the same price as gasoline to consumers. A consumer will pay the same for ten gallons of E10 as for ten gallons of gasoline even though the E10 contains a gallon of ethanol. Virtually all consumers are willing to pay the same for the gallon of ethanol for three reasons. (1) They often don't know there's ethanol in their gasoline. (2) There is often ethanol in all the gasoline because of state requirements, so they have no choice. (3) They never know the ethanol has only 2/3 the energy of gasoline and gets them only 2/3 as far.

The result is that drivers always pay much more for ethanol energy than for gasoline energy, simply because they pay the same amount per gallon. In effect when gasoline prices are $2.00 gallon, they pay $3.00 (plus a little) for the same amount of ethanol energy.

http://www.ethanolmarket.com/fuelethanol.html

[Ggreen 12]

I am more concerned about the health issues resulting from burning Ethanol fuel, as well as the damage to the fuel injection and emission control systems.

Perhaps EPA wants to please both oil and corn lobbyists and doesn't even care about the environment.

[Obama 2012 1,714]

Gotta love it. The oil company's have been literally screwing the entire world and now the greedy pr*cks are crying the blues over this ? They should just start publicly hanging oil execs imo.

Oil companies themselves are hardly the problem. While there's bad cookies out there, they generally do a good job and what they are supposed to. If you hate prices, blame investors into the commodities market as well as enviro-whackos who prevent new refineries from being built/new lease permit in areas with an abundance of oil...

Ethanol is an inefficient, pollution causing, costly product. The idiocy of turning good food into fuel is also a problem here. It's bad enough we use 10%.... adding more will not only decrease gas mileage in cars (i/e - cause more gas to be bought and put more money in the pockets of those you just scorned) but it will also destroy engines over time as well....