Wednesday, June 19, 2013

"EPA biofuel rule: energy solution or economic burden?" The Christian Science Monitor

"The brewing controversy has pit biofuel advocates and the EPA against the oil industry and fuel manufacturers who say the standards impose an unnecessary economic burden on consumers. Fueling cars with corn also has significant consequences for agriculture, putting upward pressure on food prices."

"By requiring refiners to produce a product that consumers can’t use and don’t want, it is only logical that this constriction of the market will increase fuel prices, causing economic damage," Rep. James Lankford (R) of Oklahoma said in prepared remarks. "Because of the over-reliance on food-based ethanol as a renewable fuel, the RFS has a negative impact on our food supply and security."

"The increasing demand for corn ethanol has upended agriculture markets. When the RFS was first created in 2005, ethanol made up about 14 percent of the country's corn production, according to a May 2013 report from the USDA. By 2012, that level had increased to roughly 42 percent. The growing focus on corn for energy has contributed to a 40 percent rise in crop prices between 2001 and 2012."

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