The Truth About Cars » Growth Energy http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Mon, 22 Sep 2014 18:08:45 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.2 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Growth Energy http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com E85 Boondoggle Of The Week: Blend Cap Decision Coming This Week http://www.thetruthaboutcars.com/2009/11/e85-boondoggle-of-the-week-blend-cap-decision-coming-this-week/ http://www.thetruthaboutcars.com/2009/11/e85-boondoggle-of-the-week-blend-cap-decision-coming-this-week/#comments Mon, 30 Nov 2009 21:30:00 +0000 http://www.thetruthaboutcars.com/?p=337414 The EPA is set to rule as soon as tomorrow on the so-called “blend cap,” which forbids the sale of gasoline with more than ten percent ethanol. The petition to raise the blend cap came from a relatively new pro-ethanol lobbying group, Growth Energy, which requested the cap be moved to fifteen percent ethanol. Growth […]

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The EPA is set to rule as soon as tomorrow on the so-called “blend cap,” which forbids the sale of gasoline with more than ten percent ethanol. The petition to raise the blend cap came from a relatively new pro-ethanol lobbying group, Growth Energy, which requested the cap be moved to fifteen percent ethanol. Growth Energy’s request cites foreign oil dependence, “green-collar jobs” and the future of cellulosic ethanol as reasons to bump the blend cap, but as the New York Times reports, the real problem is that the ten percent limit is bumping up against a congressional mandate to blend 15b gallons of biofuels with gasoline by 2012. What the Times fails to mention is the financial incentive for raising the blend cap: the 51 cent-per-gallon of ethanol blended tax credit. In 2007, when gas consumption was at an all-time high and ethanol blending mandates required a mere 4.7b gallons (with 7b actually blended), that credit cost taxpayers nearly $3b. In 2012, when the mandate hits 15b gallons, the taxpayer tab will be closer to $7.65b.

Meanwhile, the Alliance of Automotive Manufacturers is warning that higher blends of ethanol will cut the lives of catalytic converters in half, while E85 (85 percent ethanol, used only by “flex-fuel” vehicles) is 31 cents per gallon more expensive than gas when its lower efficiency is factored in. The reality is that meeting blending mandates has simply become more difficult because they were legislated in 2007, when few saw reason to project downward trends in fuel consumption. As Americans struggle with economic downturn, and as the auto industry improves its fuel-efficient offerings, the ethanol blending mandates represent nothing more than a burden without meaningful reward. Here’s hoping the EPA stands strong on the ten percent limit, and the discussion moves towards limiting the public expense of the ethanol industry.

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