NYT: A Fine for Not Using a Biofuel That Doesn’t Exist

[China]

A Fine for Not Using a Biofuel That Doesn’t Exist

WASHINGTON — When the companies that supply motor fuel close the books on 2011, they will pay about $6.8 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.

Click on the link for the full article

[PokerPacker]

I love when the government gets involved in things it doesn't understand.

[greenspandan]

I love when the government gets involved in things it doesn't understand.

fine, but the answer isn't to let oil companies solve the problems of sustainability and pollution through sheer spontaneous altruism, or magical concepts such as the invisible hand of the market.

we don't need less government. we need government that is interested in making better informed and more intelligent legislation, rather than being more interested in accomplishing more facile goals generally associated with self-interest or re-election. it's not like it's impossible to craft intelligent energy policy.

[Teller]

Gasoline, bad. Other crap that doesn't exist, good.

Damn big oil for getting us all to work everyday anyhow.

[twa]

The price of gas must go up to make cleaner alternatives affordable....enjoy the ride


walking is good for ya

[TheLongshot]

Gasoline, bad. Other crap that doesn't exist, good.

Damn big oil for getting us all to work everyday anyhow.

To be fair, there is also some footdragging by the oil industry as well, from what I read in the article.

Mr. Drevna of the refiners association argued that in contrast to 2007, when Congress passed the law, “all of a sudden we’re starting to find tremendous resources of our own, oil and natural gas, here in the United States, because of fracking,” referring to a drilling process that involves injecting chemicals and water into underground rock to release gas and oil.

What is more, the industry expects the 1,700-mile Keystone Pipeline, which would run from oil sands deposits in Canada to the Gulf Coast, to provide more fuel for refineries, he said.

Never mind that such resources go into the global market. Never mind that it won't last forever. Never mind that the Keystone Pipeline is far from a sure thing.

I agree that there should be some adjustment for the goals if they are unattainable (such is the way of science sometimes), but the general idea seems to be sound.

[Bang]

Interesting as always the instant thoughts.
Mine was about the corncobs.. and the huge subsidies we give corn producers, and how that might factor into their byproduct being forced into an additive no one is making.
As far as i know, corn based fuels have proven to be hugely inefficient and a waste of time and resources.
Pardon me for not having time to read it all, but how effective is this additive supposed to be in doing what?

~Bang

[Teller]

I agree that there should be some adjustment for the goals if they are unattainable (such is the way of science sometimes), but the general idea seems to be sound.

Alternatives are great. Hell, using our own resources would be great. But this amounts to fining YOU for not owning a real lightsaber.

[Destino]

Alternatives are great. Hell, using our own resources would be great. But this amounts to fining YOU for not owning a real lightsaber.

Maybe if they did that we'd have light sabers by now! Did that thought even cross your mind you corporate loving fascist?!

[Predicto]

I suspect that there are two sides to this issue.

One of the sides is being well expressed here, and I don't disagree with it.

The other side (I suspect) is that the oil companies currently find it cheaper to pay minimal fines than to make more of an effort to develop this technology. The technology is there, but it is currently expensive. Why bother investing in it if you can just pay a small fine (and at the same time, increase the political pressure to have the requirement overturned by the mere fact that you haven't bothered to do anything)?

[Teller]

Maybe if they did that we'd have light sabers by now! Did that thought even cross your mind you corporate loving fascist?!

Yeah, just like the threat of me getting fined has sparked my employer to offer me affordable health insurance.

[Riggo-toni]

Wait, are you saying my lightsaber isn't real??

I guess that's why it failed to cut that guy's arm off before he kicked my arse.

[twa]

The other side (I suspect) is that the oil companies currently find it cheaper to pay minimal fines than to make more of an effort to develop this technology. The technology is there, but it is currently expensive. Why bother investing in it if you can just pay a small fine (and at the same time, increase the political pressure to have the requirement overturned by the mere fact that you haven't bothered to do anything)?

pay fines they simply pass on to you vs paying even more and passing it on to you ....bend over

I believe you are wrong on the tech being up to commercial production level yet,but right on the expensive part.....even with subsidies and mandates to purchase product no green group wants to step up .

why blame the oil companies who have thrown billions at alt energy development?

[Predicto]

pay fines they simply pass on to you vs paying even more and passing it on to you ....bend over

Econ 101. 99 percent of the time, sellers don't "pass costs" on to the consumer. Sellers charge what the market will bear, and if they can charge more, they will, regardless of what their costs are. Costs like these tiny fines simply affect profit margins.

I believe you are wrong on the tech being up to commercial production level yet,but right on the expensive part.....even with subsidies and mandates to purchase product no green group wants to step up .

why blame the oil companies who have thrown billions at alt energy development?

I didn't say it was up to commercial production. However, the oil companies have had almost 5 years to move further down that road, and I suspect that they 1) have had difficulties getting there and 2) haven't felt the need to try very hard. Both of those things.

[twa]

Why the oil companies?

I agree the costs are tiny, not so much on not getting passed on with refined fuels(whether direct costs or not,the price of gas jumps when the price of oil does No?)

I'd be perfectly content with .0001% of all fuels sales myself,ya'll would never miss it....pony up.