• 1 day Oil Falls As Trump Tweet Blasts OPEC
  • 2 days Comey vs.Trump, Part 2: Comey's Memos. What's next?
  • 17 hours Asian Oil Demand To Hit Record - The Price Per Barrel Continues To Grow
  • 2 days Trump's top energy adviser resigns
  • 2 days Walmart and VW's Electrify America Team Up To Build Massive EV Charging Network Across US
  • 2 days Net Income At Saudi Aramco Tops $33 bn in the first half of 2017!
  • 2 days HAPPY RIG COUNT DAY!!
  • 2 days Robot Completes Hardest Job Known to Man
  • 2 days New task force formed-to evaluate postal service
  • 3 days Vistra Energy Says Coal Won't Come Back
  • 3 days Is Today's Tesla News Good or Bad?
  • 2 days Oil Prices To Fall Below $60?
  • 2 days will oil hold?
  • 2 days Anybody Watching Aluminum Stocks Today??
  • 2 days Maduro Under Pressure: EU Says May Impose More Sanctions On Venezuela If Democracy Undermined
  • 2 days Venezuela gives Oil Minister 'Extra Powers' to halt production decline
Alt Text

The U.S. Ethanol Industry Is Under Attack

The U.S. ethanol industry is…

Alt Text

Research Unveils New Promising Biofuel

New research suggests that young…

Alt Text

Is U.S. Biofuel In Jeopardy?

With the reversal of previous…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Big Oil Breaks Out Legal Guns Over Ethanol

Big Oil Breaks Out Legal Guns Over Ethanol

Big Oil’s American Petroleum Institute (API) is taking on the ethanol mandate with a lawsuit challenging quota’s that the group says is not only bad policy but unrealistic.  

On 9 October, the API filed a federal lawsuit challenging the government’s estimate over how much ethanol must be blended into the US fuel supply this year.

In August, the Environmental Protection Agency (EPA) established the volume requirements and associated percentage standards that apply in calendar year 2013 for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. These targets are set to steadily increase to an overall level of 36 billion gallons in 2022.

Related article: Corn Residue for Biofuels, Everyone’s On Board

The deadline to comply was extended to June 30, 2014, because the EPA was almost eight months late issuing the final volume requirements for 2013.

Next year, the situation will intensify as the new mandate for 2014 call for 14.4 billion gallons of ethanol to be blended with gasoline—a 4.3% increase over 2013.  

The API wants to see the ethanol mandate dip below 10% for 2014.

Harry Ng, API vice president, told reporters that the “EPA’s unrealistic ethanol mandates for 2013 are simply bad public policy… They issued this year’s requirements nine months late and has once again mandated significantly more cellulosic ethanol than is available in the marketplace.”

But Renewable Fuels Association President Bob Dinneen calls the lawsuit another frivolous effort by API to abuse the court system in their slavish effort to repeal a public policy that is working for farmers, gasoline marketers and consumers.

Related article: Turn Your Leftovers into Energy

“While the 2013 [Renewable Volume Obligations] were issued later than anyone would have liked, the fact is the statute is crystal clear, and all stakeholders have been producing and blending at levels that will unquestionably meet the 2013 requirements.”

In September, US-based Valero Energy Corp.--the largest independent refinery in the world—began seriously lobbying Washington to scrap the ethanol mandate urgently because refiners can’t keep up with the costs of maintaining the stringent biofuels targets.

The plea has resonance because not only is Valero the largest independent refining company in the world, it is also the third-largest ethanol producer in the US. Even with its position as both refiner and ethanol producer, the company can’t align costs with targets under a mandate which requires refiners to use 13.8 billion gallons of ethanol this year alone.

By. Charles Kennedy of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment
  • Charlie Peters on October 21 2013 said:
    It is reported that California is using BP, Shell, Brazil sugar cane ethanol at $0.16 per gallon increase over using GMO corn fuel ethanol. Is it time for CA AG Kamala Harris EPA GMO fuel waiver conversation?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News