Another Attack On The Middle Class

The Biden administration seems determined to wipe out the middle class in America. This may or not be on purpose, but it is definitely the result of their policies. Telling people who make $50,000 a year or less to go buy an electric car because gas is expensive is not a smart energy policy. Shutting down drilling and pipelines in America can only increase the price of gas and end our energy independence. The Biden administration energy policies are a tax on everyone and a true burden on the middle class. In an effort to improve things (or make things worse, depending on your point of view), the Biden administration has now raised the mandatory amount of biofuel, specifically ethanol, that must be blended within the U.S. gasoline supply. The 10 percent summer blend has now been raised to a year-round 15 percent.

On Monday, The Conservative Treehouse posted an article detailing some of the problems with this change. It should be noted that gas stations in areas with large boating populations sell gasoline without any ethanol. There is a reason for that–ethanol in gasoline destroys boat engines.

The article notes three issues with adding the additional ethanol:

First issue. – The Renewable Fuel Standard (RFS) is a government mandate, passed in 2005 and expanded in 2007, that requires growing volumes of biofuels to be blended into U.S. transportation fuels like gasoline and diesel every year.  Approximately 40 percent of corn grown in the U.S. is used for ethanol.  Raising the amount of ethanol required in gasoline will result in the need for more biofuel (corn).  With farming costs and outputs already under pressure this could be problematic.

Second issue – The EPA enforces the biofuel standard by requiring refineries to submit purchase credits (known as Renewable Identification Numbers, or RINs) to the Environmental Protection Agency (EPA) proving the purchases.  This enforcement requirement sets up a system where the RIN credits are bought and sold by small refineries who do not have the infrastructure to do the blending process.  They purchase second-hand RIN credits from parties that blended or imported biofuels directly. This sets up a secondary income stream, a trading market for the larger oil companies, refineries and importers.

Third Issue – “Ethanol is a valuable source of octane in finished gasoline, but it is chemically different than petroleum gasoline and cannot be used in concentrations above 10 percent in small engines — like outboard boat motors, motorcycles, lawnmowers, generators or chain saws — or in any cars made before 2001. Complicating matters further, most cars on the road today still aren’t warrantied to run on gasoline with more than 10 percent ethanol. Retail stations also must have compatible infrastructure in order to sell gasoline with higher ethanol blends.”  This issue is known within the industry as “The Blend Wall.

Please follow the link to the article for further details. This is not a good move for America’s middle class.