By Nicolas Loris ~
This week, the Environmental Protection Agency announced its biofuels targets for 2014-16 as part of the Renewable Fuels Standard passed in 2005.
In the interest of forcing biofuels into the market, the agency now will require 17.4 billion gallons of biofuels be produced in 2016, 14 million of which can be corn-based ethanol.
The proposal directly admits how bad the federal government is at central planning and how little business it has setting production quotas. The Environmental Protection Agency acknowledges, “Due to constraints in the fuel market to accommodate increasing volumes of ethanol, along with limits on the availability of non-ethanol renewable fuels, the volume targets specified by Congress in the Clean Air Act for 2014, 2015 and 2016 cannot be achieved.”
The government has grossly underestimated the target for cellulosic (nonfood-based) ethanol and has teetered on the verge of requiring too much corn-based ethanol, driving energy…
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