The recent extension of the deadline to meet renewable fuel quotas for 2013 was a step in the right direction, but why not eliminate quotas for renewable fuels altogether?
FreedomWorks.org recently posted its “Top Ten Reasons to Eliminate Renewable Fuel Standards,” suggesting plenty of good reasons for getting rid of the renewable fuel quotas. Although the list leans more toward the ethanol side of the renewables equation, it offers these stats regarding the soybeans used in biodiesel:
“Looking at the math, the EPA’s policy concentrates the benefits and widely distributes the harms. . . This rule concentrates benefits to special farm interests like the corn and the soybean industries. . . For example: the rule will raise soybeans prices by 18 cents per bushel, yielding soybean farmers a $550 million increase in revenues based on 2011 bushel-production figures. The price of soybean oil is expected to rise by 3 cents per pound, adding up to a $1.2 billion increase in revenues for soybean oil producers.”
FreedomWorks adds, “This is one example of how the EPA continues to promulgate political favors rather than sound policy. Rather than encouraging healthy competition, the fuel mandates encourage political rent-seeking harming consumers and taxpayers.”
Tags: Alteranate Fuels
, Fuel Economy