Fines levied for not using virtually non-existent Biofuel

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Fines levied for not using virtually non-existent Biofuel

Post by Riddick » 01-24-2012 05:36 PM

"How Green Was My Penalty" -
A case study of how even the best-laid plans can be
not just unreasonable, but also ridiculously unrealistic
By MATTHEW L. WALD
Published: January 9, 2012

WASHINGTON - When the companies that supply motor fuel close the books on 2011, they will pay about .8 million in penalties to the Treasury because they failed to mix a special type of biofuel into their gasoline and diesel as required by law.

But there was none to be had. Outside a handful of laboratories and workshops, the ingredient, cellulosic biofuel, does not exist.

In 2012, the oil companies expect to pay even higher penalties for failing to blend in the fuel, which is made from wood chips or the inedible parts of plants like corncobs. Refiners were required to blend 6.6 million gallons into gasoline and diesel in 2011 and face a quota of 8.65 million gallons this year.

"It belies logic," Charles T. Drevna, the president of the National Petrochemicals and Refiners Association, said of the 2011 quota. And raising the quota for 2012 when there is no production makes even less sense, he said.

Penalizing the fuel suppliers demonstrates what happens when the federal government really, really wants something that technology is not ready to provide. In fact, while it may seem harsh that the Environmental Protection Agency is penalizing them for failing to do the impossible, the agency is being lenient by the standards of the law, the 2007 Energy Independence and Security Act.

The law, aimed at reducing the nation's greenhouse gas emissions, its reliance on oil imported from hostile places and the export of dollars to pay for it, includes provisions to increase the efficiency of vehicles as well as incorporate renewable energy sources into gasoline and diesel.

It requires the use of three alternative fuels: car and truck fuel made from cellulose, diesel fuel made from biomass and fuel made from biological materials but with a 50 percent reduction in greenhouse gases. Only the cellulosic fuel is commercially unavailable. As for meeting the quotas in the other categories, the refiners will not close their books until February and are not sure what will happen.

The goal set by the law for vehicle fuel from cellulose was 250 million gallons for 2011 and 500 million gallons for 2012. (These are small numbers relative to the American fuel market; the E.P.A. estimates that gasoline sales in 2012 will amount to about 135 billion gallons, and highway diesel, about 51 billion gallons.)

Even advocates of renewable fuel acknowledge that the refiners are at least partly correct in complaining about the penalties.

"From a taxpayer/consumer standpoint, it doesn't seem to make a lot of sense that we would require blenders to pay fines or fees or whatever for stuff that literally isn't available," said Dennis V. McGinn, a retired vice admiral who serves on the American Council on Renewable Energy.

The standards for cellulosic fuel are part of an overall goal of having 36 billion gallons of biofuels incorporated annually by 2022. But substantial technical progress would be needed to meet that - and lately it has been hard to come by.
Read more at nytimes.com
Last edited by Riddick on 01-24-2012 07:32 PM, edited 1 time in total.

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Post by Fan » 01-26-2012 10:35 AM

haha nice. We are so screwed up about oil and gas.

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