– by Bob Adelmann, October 28, 2016, The New American
(Graphic: Taxpayers for Common Sense)
When the Energy Independence and Security Act of 2007 was signed into law by then-President George W. Bush, it was well-intended: It would increase America’s oil independence and reduce dependence on foreign oil, it would produce cleaner air, and it would help farmers.
The Act required refiners to add ethanol to every gallon of gasoline they produced. If a refiner decided it couldn’t (too costly) or wouldn’t (internal decision) do so, it would be required to buy ethanol credits. Those credits, called RINs (for Renewable Identification Numbers), are now being traded and reaping hundreds of millions of dollars in gains for the big oil companies. According to the New York Times, the Act has “inadvertently become a multi-billion-dollar windfall for some of the world’s biggest oil companies.”
– by David Gelles, September 17, 2016, New York Times
Cartoon: Minh Uong
A decade ago, lawmakers in Washington tried to address a trifecta of thorny challenges with one simple fix that has turned out to be anything but easy to assess.
The problems: an overreliance on foreign oil, rising greenhouse gas emissions and tepid economic growth.
The solution: the Renewable Fuel Standard, commonly known as the ethanol mandate. Enacted in 2005 and expanded two years later, the legislation required that refiners blend an increasing amount of biofuel into the gasoline that powers most American cars.
– by Kristen Hays, January 20, 2016, Reuters
Photo: REUTERS/Bob Riha, Jr.
On the heels of last month’s Paris agreement to curb carbon emissions, independent refiner Tesoro Corp said it is working with several biofuel companies to run more crude made from renewable plants and waste at its California refineries, the company told Reuters on Tuesday.
Using so-called biocrude from Fulcrum BioEnergy Inc and other partners is intended to lower Tesoro’s costs to comply with California’s Low Carbon Fuel Standard (LCFS), which requires refineries to run more environmentally friendly produced crude.
Rather than build or overhaul units to produce biofuels, Tesoro can blend biocrude into other crudes that feed existing refineries to generate LCFS credits, C.J. Warner, executive vice president of strategy and business development, said.