Ethanol Coalition: Auto Engineers Expose EPA’s Oil Bias

ACElogoA new paper from automotive engineers shows how the federal government has a bias toward Big Oil. Officials from the American Coalition for Ethanol (ACE) praised a new Society of Automotive Engineers (SAE) paper authored by experts from Ford Motor Company, General Motors Company, and AVL Powertrain Engineering Inc. that concludes that emissions from higher ethanol blends are cleaner than gasoline, and the approach used by the U.S. Environmental Protection Agency (EPA) to estimate exhaust emissions, the Motor Vehicle Emissions Simulator (MOVES) model, is biased in favor of oil.

“We applaud these Ford, General Motors, and AVL Powertrain engineers for exposing that EPA’s MOVES model is biased in favor of a result oil companies prefer and ignores the way gasoline is blended with ethanol in the real-world,” said [ACE Executive Vice President Brian] Jennings. “This is just the latest example of how Big Oil is twisting EPA’s arm to limit ethanol use. First, it appears EPA is about to completely rewrite the Renewable Fuel Standard to help oil companies avoid their legal responsibility to blend fuels, like E15 and E85, which reduce greenhouse gas emissions. Now, EPA is relying on a biased approach for estimating tailpipe emissions, remarkably making gasoline appear cleaner than ethanol.” Continue reading

API: Extend Domestic Fuel Supply To Lower Gas Prices

In a recent blog post authored by Geoff Cooper, senior vice president of the Renewable Fuels Association (RFA), the American Petroleum Institute (API) recently released a study that argues that the fracking boom has led to dramatically lower prices for crude oil and refined products between 2008-2013. Cooper wrote that the study suggests that increased Cooper Graphic in API study articledomestic production of crude oil, natural gas liquids (NGLs) and lease condensate from fracking has already extended U.S. supplies and helped to lower gas prices.

The study finds that every 1 million barrels/day of new supply reduces consumer prices for petroleum products between $0.06-0.20 per gallon. Cooper writes that according to economics more supply generally results in lower prices, in this case there are two problems with API’s rationale.

  • Problem 1: Global demand for petroleum products continues to grow faster than global supply. EIA data show global production of crude oil, NGLs and condensate grew by 4.1 million barrels/day between 2008 and 2013. But global consumption of those products ramped up by 5.4 million barrels/day over the same period. Thus, demand gains outstripped supply gains by more than 30%.
  • Problem 2: When energy economist Phil Verleger and researchers at Louisiana State University, Iowa State University, University of Wisconsin, the Department of Energy, and others separately showed that extending the U.S. gasoline supply with ethanol leads to lower pump prices, Big Oil defiantly screamed “NOT SO!” Verleger found that consumer paid $0.50-$1.50 per gallon less for gasoline in 2013 because of ethanol’s extension of the fuel supply. His conclusion corroborated results from Iowa State/University of Wisconsin that showed consumers saved up to $1.09 in 2012 due to ethanol’s aggregate effect on gasoline supplies.

Cooper ends his article by asking the question, “So, which is it API? Does adding volume to the fuel supply reduce prices, or doesn’t it?”

EPA Fools Ethanol Advocates – Merle Anderson

The following is a guest editorial by American Coalition for Ethanol founder Merle Anderson.

merle-headI just want to remind EPA and Big Oil that I am still around. Since organizing the American Coalition for Ethanol nearly 30 years ago I have just celebrated my 93rd birthday.

I am damn mad because I think we’ve let EPA fool us into letting the fraudulent 10 percent ethanol blend wall stand. It has collapsed grain markets by dishonestly ending ethanol’s growing demand for corn and they call that free enterprise. I call it stealing many, many billions of dollars from agricultural economies.

That blend wall exists because EPA fooled people into thinking it is legitimate because fueling standard cars with E30 illegally increases gasoline’s hazardous emissions. Ever try drinking gasoline? My friend Orrie Swayze’s research agrees that E30 reduces gasoline’s hazardous emissions by 30% because, unlike gasoline, ethanol does not produce known human carcinogenic tailpipe emissions.

I also find it laughable that EPA claims E30 can harm standard auto engines. Show me a legitimate warranty denial. I have never owned a flexible fuel vehicle and fueled my last 7 vehicles with half E85 or used E30 through blender pumps to travel over 600,000 miles. When I traded in the vehicles, the engines were still in top condition.

When blender pumps were installed for the first time, I started hearing many positive remarks about ethanol’s engine performance. EPA tries to deny that standard auto owners have successfully driven millions of miles annually on popular, high octane E30 since blender pumps were installed five years ago. Our typical report still is “more power and can’t tell any difference in mileage compared to E10.”

I challenge agricultural and ethanol leaders to dare and expose EPA’s lies that built the blend wall. I also urge that you use E30 in standard vehicles and openly endorse premium E30 as the legal, safest, best, lowest cost fuel choice on the market today for standard vehicle owners.

Merle Anderson
Climax, MN

Fuels America Is Spilling the ‘Oil’

Fuels America is spilling the oil detailing the amount of money Big Oil has spent to “rig the political system” with lobbyists and campaign cash since 2008. Using data from opensecrets.org, the oil industry has spent more than $1.1 billion, $961 million lobbying Congress and $146 million in campaign contributions. This equates to more than $2 million for each member of Congress. The coalition said a significant amount of the funds were used to “block renewable fuels” and to “rig Congress and campaigns” across the U.S.

The oil industry reaped $93 billion in profits last year and continually receives sweetheart tax breaks upwards of $470 billion and counting, while renewable fuels generate $14.5 billion in tax revenue every year.

Meanwhile, said Fuels America, the oil lobby has continued to fight to kill the Renewable Fuel Standard (RFS), which would permanently outsource thousands of American jobs and increase our reliance on foreign oil from hostile and unstable regions. The coalition has urged President Obama to resist pressure from the oil lobby and reject an Environmental Protection Agency (EPA) proposal to gut the RFS.

Rigging the Tax Code ad

The ads, which will run for the next week, link to a page that breaks down the numbers and invites Americans to join the fight against oil industry efforts to rig the system and block competition from renewable fuels. They can be seen on sites such as POLITICO.com, RollCall.com and TheHill.com.

“PUMP” Movie Getting Good Reviews

pump-movieA new documentary film that explores the history of the American fueling infrastructure and how it has led to today’s oil-dominated market, which features some ethanol industry figures, is being well received by critics and viewers alike.

“PUMP” the movie, opened last month and has a rating of 71% fresh on Rotten Tomatoes, with an 82% audience approval rating. Big name reviewers like the New York Times and Variety have had very good things to says about the movie.

The film is the latest from Josh and Rebecca Tickell, who have done other documentaries on alternative fuels beginning with FUEL, released in 2009, that focused on biodiesel.

PUMP features several familiar faces of folks known in the renewable fuels industry, including “Energy Victory” author Dr. Robert Zubrin, Biofuels Digest Editor Jim Lane, and Renewable Fuels Association Vice President for Industry Relations Robert White.

“Not often do small town farm kids from Kansas make it to Hollywood’s big screen, but I am fortunate enough to be one of those, if even for just a few seconds,” writes White in a column today for the E-xchange Blog. “The opportunity to be a part of an educational effort of this scale is not only rewarding, it is exciting.”

To find out more about the movie and when it might be playing in your area – check out PumpTheMovie.com and like it on Facebook.

“PUMP” Coming to a Theater Near You

There is a new documentary coming to a theater near you: PUMP. The film tells the story of America’s addiction to oil. Stories told range from Standard Oil’s illegal tactics to the dominance of oil companies. The goal of the film is to explain why and how consumers can end Big Oil’s monopoly and “win choice at the pump”.

According to the movie’s website, gasoline is our only option of transportation fuel today. With global demand rising and the continued dependence on gas our wallets are thinning. In addition, air pollution is getting worse and Americans are fighting wars in oil-rich countries.

PUMP shows consumers how making a variety of replacement fuels widely available will reduce fuel prices across the board. Diversifying the market with replacement fuels that are cheaper, cleaner and American made will also create jobs, strengthening the economy at home and promoting stability abroad.

The movie features experts including John Hofmeister, former President of Shell Oil Co.; Elon Musk, CEO of Tesla Motors, Inc.; Peter Goldmark, former president of the Rockefeller Foundation; our colleague Jim Lane and other noteworthy figures.

To see where the movie is headed and to buy tickets, visit the PUMP website.

Report Shows Oil Companies Paid 11.7% Tax Rate

According to a new report from Taxpayers for Common Sense, oil companies paid only 11.7 percent of the U.S. income in federal taxes over the last five years. This is compared to the statutory 35 percent corporate tax rate paid by other companies.

“This is a perfect example of how the oil industry is allowed to play by a different set of rules than everyone else,” commented Jeremy Funk, communications director with the ETRcover4nonprofit organization Americans United for Change who supports choice at the pump through biofuels. “They can dodge billions of dollars in taxes, and Washington lets them get away with it. This is the same industry that is now fiercely lobbying the White House for yet another special interest favor: gutting the Renewable Fuel Standard and allowing more foreign oil into the U.S. gasoline supply at the expense of cleaner, cheaper renewable fuels made in America. Isn’t the system rigged enough in Big Oil’s favor without Washington helping them become a monopoly at the pump, too?”

The country is still waiting the final rules from the Environmental Protection Agency (EPA) for the 2014 Renewable Fuel Standard (RFs) that if passed as proposed, would reduce the amount of domestically produced biofuels at the pump while increase foreign oil. Funk points out that gasoline costs more than renewable fuels such as ethanol, and the EPA proposal would cost Americans millions of dollars at the pump, ‘killing’ American jobs. Funk also said that because the EPA proposal effectively allows oil companies to block access to the marketplace by refusing to install fueling infrastructure for renewable fuels, it will be particularly devastating to America’s emerging advanced biofuel industry.

To achieve such a low current tax rate, oil companies were able to take advantage of special tax breaks and loopholes that allowed them to defer more than $17 billion in taxes they would have otherwise owed, explained Funk. One “small” oil company, Apache, earned $6 billion in profits between 2009 and 2013 but deferred its entire tax bill. Not only did the company avoid paying any taxes, but it actually reaped a tax benefit worth $220 million according to Funk.

The report concludes with a damning indictment of the oil industry’s deceitful rhetoric about its tax obligations:

“Oil and gas companies may pay a lot in income taxes, but it is not to the U.S. government. Indeed, the “current” federal income tax rate of some of the largest oil and gas companies – the amount they actually paid during the last five years – was 11.7 percent. The “smaller” companies included in the study which reported positive earnings only paid 3.7 percent. Many of the tax provisions available to the oil industry are not available to other taxpayers, giving these companies a significant tax advantage. The language the industry uses gives the impression that it pays a high federal income tax rate. The American Petroleum Institute cites an industry-wide effective tax rate of 44.3 percent. In reality, the amount oil and gas companies pay in federal income tax is considerably less than the statutory rate of 35 percent, thanks to the convoluted system of tax provisions allowing them to avoid and defer federal income taxes.”

Oily Palms

According to Americans United for Change (AUC), Iowa Republican U.S. Senate candidate Joni Ernst has attracted national attention with her stance on the Renewable Fuel Standard (RFS) – that she is not supportive of subsidies. This before the news broke last week that the billionaire oil baron Koch brothers maxed out their contributions to Ernst’s campaign on top of the over $20,000 the Koch donor network has funneled to her campaign coffers. The new breaking news is that ExxonMobil PAC is toasting Ernst at a $1,000 a plate in Washington, D.C. this Wednesday, July 30, 2014.

In response, AUC, a pro biofuels and pro-RFS organization, is hitting the radio waves this week in Des Moines, Iowa calling on Ernst to choose a side: Iowa jobs, or Big Oil profits. However, AUC said Ernst seemed to side with the latter.

The group cites that when Ernst was pressed to take a firm stand on the RFS, Ernst stressed she’s “philosophically opposed” to farm subsidies and that she “want[s] people to choose products that work for them and not have them mandated by the United States government.” Not exactly the ringing endorsement for ethanol that Iowa rural communities may be hoping to hear, said AUC.

Jeremy Funk, Comm. Dir., Americans United for Change, which recently ran full page ads in Iowa urging Ernst to clarify her muddy RFS position, said, “There’s easy choices and there’s hard choices. For someone hoping to represent a state that leads the nation in renewable fuels production, you might think that unconditional support for the Renewable Fuel Standard and 73,000 Iowa jobs would be a no-brainer. But for some reason, it’s a hard choice for Joni Ernst.”

“Big Oil has taken notice of Ernst’s begrudging support for the RFS while remaining ‘philosophically opposed’ to it. What is a telling choice is for Ernst to welcome Big Oil’s support with open arms at a decadent Washington fundraiser this week,” continued Funk. “Big Oil lobbyists would love nothing more than to be able to say, “You see, even a Senator from Iowa thinks the RFS is unnecessary.” Big Oil would love to be able to use Ernst as a poster child in their multi-million smear campaign to drive ethanol out of business. They hate that consumers have a cheaper and cleaner option at the pump thanks to Iowa renewable fuels. They hate that every gallon sold of ethanol produced domestically means one less gallon sold of gas made from dirty crude oil from unstable regions like Iraq.”

Funk noted that the more money Ernst receives from Big Oil interest, the more reluctant her support for renewable fuels.” Ernst needs to get her priorities straight: choosing between Iowa’s economy and the special interests shouldn’t be a choice at all,” Funk concluded.

EPA Hears Corn Grower Concerns About RFS

Members of the National Corn Growers Association (NCGA) meeting in Washington DC were able to share their concerns about the delayed rule on 2014 volume obligations under the Renewable Fuel Standard with EPA Deputy Administrator Bob Perciasepe.

epa-ncga“The number needs to be out, it’s really ridiculous,” said NCGA president Martin Barbre, pictured here on the right with Perciasepe. “He said ‘we’re behind time frame’ and we had some delegates stand up and say ‘you’re not behind time frame, you’re way late.'” The final rule was expected by the end of June but EPA officials say it is being delayed because of the massive volume of comments that need to be studied in order to make a decision.

Barbre says while they appreciate the fact that EPA is taking the time to make sure they make the right decision, delaying it until almost the end of the year causes problems in the market. “Sort of what has created this issue with RINS and that run up in the RINS price is the lateness of the oil companies getting the numbers,” said Barbre. “They’re supposed to have these number in the spring, they get them in the fall, and by the end of the year they have got to have met their obligations. So it puts them in somewhat of a bind.”

“We’re not usually on the side of defending the oil companies, but in this case they just need to get the numbers faster so they can get themselves where they need to be,” Barbre added.

Listen to Barbre’s comments here: Interview with NCGA president Martin Barbre

What is the Difference Between Crude Oil & Ethanol?

RFANewlogoThe U.S. Department of Transportation (DOT) has released a new tank car proposal that is designed to enhance the safe transportation of hazardous materials, including ethanol and crude oil. Bob Dinneen, CEO and president of the Renewable Fuels Association (RFA) expressed concern over the rule’s same treatment of crude oil and ethanol when ethanol has a strong safety record while the high volatility of crude oil from the Bakken is not adequately addressed.

However, Dinneen did applaud the Administration for adopting a comprehensive approach to increasing concerns about rising shipments of highly volatile crude oil on the nation’s railways. He noted that the approach outlined today appears to address prevention, mitigation and response related to crude oil derailments.

“Ethanol is a low volatility, consistent commercial product with a 99.997 percent rail safety record,” said Dinneen. “Unlike oil from fracking, ethanol is not a highly volatile feedstock of unknown and differing quality and characteristics being shipped to a refinery for commercial use. Before this proposed rule is finalized, the RFA looks forward to engaging the Department of Transportation in a constructive dialogue about these differences, and the need to have a practical and effective phase-in of these new standards,” added Dinneen. “In the meanwhile, the U.S. ethanol industry will continue to work with all parties to assure the safe and effective transport of this low-cost, domestic renewable fuel to markets all across the country.”

Report Shows Oil Companies Block Renewable Fuels

gasoline_pumpThe biggest names in the oil industry get failing grades when it comes to offering alternative transportation fuels like ethanol, according to a new report card released today by the Renewable Fuels Association (RFA).

A new “Consumer Choice Report Card” grades the nation’s largest retail gasoline chains based on whether they are providing consumers with alternatives to regular gasoline that cost less, reduce pollution and are higher octane for better engine performance.

RFANewlogoAccording to RFA, the “Big Five” oil companies all scored at the bottom of the list — with fewer than one percent of stations offering American made, renewable alternatives like E85 or E15 — while a number of major independent retail chains received “A+” grades, with more than 25 percent of their stations offering E85 or E15. Those five companies are Exxon, BP, ConocoPhillips, Chevron and Shell. At the head of the class are independent chains such as Break Time, Meijer, Thorntons, Kum & Go, and Kwik Trip – all of which earned a grade of A+ for their support of renewable fuels. Among oil company affiliated brands, only Speedway/SuperAmerica and Cenex received high marks (“A-“ and “B,” respectively.)

The Consumer Choice Report Card is part of a new report from the RFA titled “Protecting the Monopoly: How Big Oil Covertly Blocks the Sale of Renewable Fuels” which exposes how the five largest oil companies, along with a number of leading refiners, are “engaging in strong arm tactics and covert practices to prevent and discourage the sale of renewable fuels, especially at stations carrying their brand name.” The report finds that oil company distribution contracts “routinely include provisions that make it difficult, needlessly expensive, or simply impossible for a retailer to offer consumers choices like E15 or E85.”

RFA president and CEO Bob Dinneen and RFA Senior Vice President Geoff Cooper held a media call to discuss the report and scorecard. “Cynically, oil companies frequently cite a shortage of fueling infrastructure as a reason why the EPA should lower the requirements of the Renewable Fuel Standard. Yet, as demonstrated in this analysis, the oil industry itself has deliberately created this shortage by making it as difficult and burdensome as possible for retail gas stations to offer greater volumes of renewable fuels,” said Dinneen. “We have to enforce the Renewable Fuel Standard.”

Cooper explains some of the tactics used by the big oil companies to prevent or discourage sales of renewable fuels. “Most of these contracts require supplier exclusivity meaning the retailer can only sell fuels made by supplier,” said Cooper. “So if the supplier doesn’t make E15 or E85 available at the terminal, the distributor can’t distribute it to the retailer.” Cooper says many agreements actually actively discourage retailers from promoting the availability of E85 and some have been fined for doing so.

Listen to or download the call here: RFA report on how oil companies block renewable fuels

Solutions to Threat Oil Poses for Armed Forces

A new video offers solutions to the threat oil poses for America’s armed forces and the nation’s security. The video was developed by the Union of Concerned Scientists (UCS) and the Truman National Security Project. The new video details the growing danger of oil use to the country’s national security. The U.S. Department of Defense is the world’s largest institutional oil consumer, using more than 100 million barrels every year to power ships, vehicles, aircraft, and ground operations. That’s enough oil to drive around the Earth more than 4 million times. According to the two organizations, this high use leads to greater unpredictability for missions, especially given oil’s vulnerability to price swings on the world market.

“Moving fuel on the battlefield is dangerous and expensive,” said Michael Breen, a former Army captain and executive director at Truman. “A ten dollar increase in the price of a barrel of oil costs the military $1.3 billion — money we can’t use to accomplish our mission and protect our troops.”

The groups argue that despite oil industry advertising championing new domestic production, so called “new oil and gas” resources aren’t really new at all. And they are only available because the oil industry is now desperate enough to go after dirtier, more difficult and expensive oil than they were before. They they said is neither a sustainable solution for our armed forces or our country.

“As the era of cheap and easy oil comes to an end, the oil industry’s desperation for continuing profits has led to more and more destructive practices that are not solving the problems associated with oil use,Hybrid Humvee” said Siv Balachandran, an engineer and oil analyst at UCS. “The real solution is to use less oil.”

Balachandran and Breen noted that the armed forces are adopting new, innovative technologies to reduce oil use while creating a stronger, more effective fighting force. For example, the Navy uses biofuels made from algae and other advanced sources, while the Army is powering Humvees with hybrid-electric engines. These technologies could benefit civilians too.

“The country is already making progress on this front, with federal and state policies helping cars go farther on each gallon of gas and putting thousands of hybrid and electric vehicles on the road — saving the country money while reducing emissions and creating jobs, but the work is not done,” said Balachandran. “By supporting policies that cut oil use even further, we’ll keep America healthier, wealthier, and more secure.”

Breen added, “As the largest institutional consumer of fuel in the world, the U.S. military is leading the way in reducing oil use and investing in renewable options. That’s good for America’s budget and for national security. Our communities – the veterans and national security leaders of Operation Free, and the scientists of UCS – are united in supporting the military’s innovative clean energy solutions.”

Where do Iowa Candidates Stand on the RFS?

Americans United For Change want Iowans to know where their candidates for U.S. Senate stand: with Iowa farmers or Big Oil. The Renewable Fuel Standard (RFS), legislation that mandates the U.S. transportation sector blend 36 billion gallons of alternative fuels into our fuel by 2022. With more than 30,000 comments sent to the Environmental Protection Agency (EPA) on their proposed 2014 required volume obligations, aka, how many gallons of biofuels will be blended into fuel in 2014, there has still been no word on the final 2014 rule out of D.C.

In Iowa, primary elections took place last week and newly nominated Republican Joni Ernst, who currently serves as an Iowa Legislator, has not taken a firm stand on the RFS. According to Americans United for Change, she claims to be pro-RFS but often in the same breath admits she is “philosophically opposed” to all subsidies and that she “want[s] people to choose products that work for them and not have them mandated by the United States government.”

Americans United for Change Des Moines Register pro-RFS adToday, Americans Unite for Change, in an effort to get a straight answer, has taken out a full page ad in the Des Moines Register and Cedar Rapids Gazette that asks the questions whether the tens of thousands of dollars Ernst’s campaign has already taken from the billionaire oilmen Koch Brothers is the reason why she is so hesitant to go to the mat for renewable fuels. The biofuels industry accounts for $5.5 billion of Iowa Gross Domestic Product (GDP, generates $4 billion of income for Iowa households, and supports 60,000 jobs throughout the state.

Jeremy Funk, Comm. Dir., Americans United for Change, said of the ad, “As the candidates from opposing parties interview to be the next Senator from Iowa, there are many issues like raising the minimum wage that will present a clear contrast for voters. The Renewable Fuel Standard should not be one of those issues in the state that leads the nation in renewable fuel production with 41 ethanol plants and 18 biodiesel plants.”

“And yet,” continued Funk, “Tea Party-favorite Joni Ernst is going out of her way to complicate the simple and flip-flopping all around the issue. Talking out both sides of the mouth is something we’ve come to expect from politicians, just not politicians from Iowa on the issue of supporting renewable fuels. A strong and clear voice of support for ethanol and biodiesel is needed now more than ever in Washington with Big Oil spending millions of dollars to try to put out of business their cheaper, cleaner competition so they can gouge consumers at the pump with impunity.”

But it seems the more money Joni Ernst’s campaign rakes in from big oil interests like the billionaire Koch Brothers, the weaker and murkier her position becomes.” Funk concluded, “You can tell a lot about how a politician would actually govern by the friends they keep.”

Another Day, Another Oil Spill

An oil pipeline ruptured in Los Angeles on LA Street yesterday and in response Americans United For Change said, “Like oil spills? You’ll love what happens after dismantling the Renewable Fuel Standard. 50,000 gallons of crude oil spilled out onto the streets and in some areas the crude oil was knee-high.

Photo: LA Times

Photo: LA Times

Jeremy Funk, spokesperson for pro renewable energy and pro Renewable Fuel Standard (RFS) group Americans United for Change, said of the crude oil spill, “Whether you live in the Gulf Coast community, near a railroad in Lynchburg, VA, a farm in North Dakota, or in the middle of a major metropolis like Los Angeles, it seems nowhere in America is out of reach from the messes big oil leaves behind.”

“Headlines about oil industry spills and explosions and derailments have become a ‘dog bites man’ story,” Funk continued who stressed that the alarming rate of environmental disasters associated with oil should give the Environmental Protection Agency (EPA) serious pause before deciding whether or not to roll back the RFS. The EPA is expected to publish its final 2014 RFS rules around June 1 and there is concern they will move forward with lower renewable fuel gallons than what is called for in legislation.

“Consider that ethanol makes up 10% of the U.S. gasoline supply, and that for every gallon of ethanol produced domestically it means one less gallon sold of gasoline derived from dirty crude oil from unstable regions. That’s why the oil industry wants the EPA to help put out of business their safer, cleaner, cheaper renewable fuels competition. But if the EPA give big oil what they want and drastically cuts down the amount ethanol in the nation’s fuel supply, there’s no way to avoid a corresponding increase in demand for crude oil and an increase in the number of disasters related to transporting it.” Funk added, “So if you like oil spills — you’ll love what happens if the RFS is watered down.”

Reuters Story at Odds with Philly Energy Independence

novo-phillyThe mayor of Philadelphia delivered a “Declaration of Energy Independence” today to recognize the city’s and region’s contributions to domestic energy and energy security. At the same time Reuters broke a story claiming that Philadelphia oil refinery connections were the main forces behind the Obama administration proposal to lower volume requirements for biofuels under the Renewable Fuel Standard (RFS) this year.

Mayor Michael Nutter’s declaration proclamation was made at the request of the Biotechnology Industry Organization (BIO) and Novozymes, marking the start of BIO’s World Congress on Industrial Biotechnology.

philly-energyAccording to the article, it was The Carlyle Group and Delta Air Lines, owners of two refineries in the Philadelphia area, that put the pressure on the administration to cut back on biofuels requirements by convincing policymakers that “the rising mandates would cripple their businesses and threaten thousands of jobs.”

The article claims that two Pennsylvania congressman were called on to take the refiners’ concerns about the RFS to the White House, and that in July and August of last year, “17 refiners and their allies visited the White House’s rulemaking arm, the Office of Management and Budget (OMB) to discuss the RFS. Only six biofuel supporters visited the OMB over the same time.” Reuters even produced a graphic to illustrate the comparison between visits by oil and ethanol lobbying interests last year.

Read the story here.