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Oh, noes: 80 percent of biofuels producers have cut back production due to federal-mandate uncertainty
Well, who woulda’ thunk it? The Environmental Protection Agency finally decided to acknowledge the incompatibility of the Renewable Fuel Standard with both America’s declining gasoline consumption and the environmental degradation caused by the production of corn ethanol, thereby obliterating the entirely government-imposed “market” for biofuels — and what do you suppose happens? Via The Hill:
Almost eight in 10 biodiesel producers in the United States have cut back production this year due to uncertainty over federal policies that encourage making the fuels, the National Biodiesel Board (NBB) said.
The report released Wednesday was based on a survey the NBB conducted. In addition to the finding that 78 percent of producers reduced output, 57 percent of companies have idle or shut down plants and 66 percent have reduced their workforces or are considering it.
Almost all of the surveyed companies attribute the industry’s decline to two recent policy developments: the expiration at the end of last year of the tax credit to produce biodiesel and a proposal last year by the Environmental Protection Agency not to increase the biodiesel mandate in the Renewable Fuel Standard.
“Inconsistency in Washington is wreaking havoc on the U.S. biodiesel industry,” Anne Steckel, NBB’s vice president of federal affairs, said in a statement.
If they do go out of business, it will be because the feds stopped propping them up. They can't survive one day without the subsidies and they know that. Production has nothing to do with their failure, it's been an unfeasible business plan right from the get-go. More spending to put our money into the pockets of their crony friends with green ideas. No investment capitalist would touch these people. And the Green Bankruptcy Parade goes on!
******************* "The best way to get a bad law repealed is to enforce it strictly." Abraham Lincoln
"Either the Republican party will reform itself or its going the way of the wind." Pat Caddell at CPAC