Backdoor Gas Tax Called Green Energy “Investment”
CAGW | July 29, 2012
Imagine if the government passed a law requiring you to purchase either a specified number of pink elephants or government-issued â€œpink elephant credits.â€Â This is, in essence, what the government is doing to oil companies, explains CAGW Intern Maddie Eldridge on CAGWâ€™s â€œSwine Lineâ€ blog.Â The seeds of this nonsensical policy were sown in the 2007 Energy Independence and Security Act, which required oil companies, starting in 2010, to purchase a specified volume of cellulosic biofuels, or fuel made from non-food crops and plant matter.Â The fuels were intended to be mixed with conventional gasoline, thereby ostensibly reducing environmental pollution.Â The only problem is, despite more than $1 billion in taxpayer handouts to date, not a single gallon of cellulosic biofuel has been brought to market due to â€œsignificant hurdles [that] must be overcome before commercial-scale production can occur,â€ according to the Congressional Research Service. Â As a result, oil companies have been forced to purchase Environmental Protection Agency-issued â€œwaiver creditsâ€ in lieu of the actual fuels â€“ a cost that is ultimately borne by American consumers at the pump.Â Read more about the cellulosic biofuel mandateâ€™s unintended consequences.
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