web analytics
a

Facebook

Twitter

Copyright 2015 Libero Themes.
All Rights Reserved.

8:30 - 6:00

Our Office Hours Mon. - Fri.

703-406-7616

Call For Free 15/M Consultation

Facebook

Twitter

Search
Menu
Westlake Legal Group > Posts tagged "gasoline"

The President needs to climb off the ethanol teeter-totter

Westlake Legal Group ethanol The President needs to climb off the ethanol teeter-totter The Blog Renewable Fuel Standard refineries mandates King Corn gasoline ethanol

Call it a teeter-totter or call it a tug-of-war. The fact is, as we’ve discussed here previously, President Trump is stuck in the middle of an ongoing feud between the ethanol lobby (a.k.a King Corn) and the oil and gas industry. He’s been trying to keep both sides happy since he began running for office several years ago and it’s simply not working.

We’re seeing the latest signs of Trump’s exhausting efforts to please both factions with the outcome of meetings between the President and the heads of the Department of Agriculture and the EPA. It appears that the White House will be tossing yet another bone to the corn farmers of Iowa. (Reuters)

The Trump administration is considering ramping up biofuel blending quotas in the coming years to assuage anger in the Farm Belt over its recent broad use of waivers for small refineries, but is not planning to rescind any of the exemptions it has granted so far, four sources familiar with the matter said.

The approach would mark a mixed result for the agriculture industry and its backers who had been pushing the administration to revoke some of the exemptions, which they argue hurt demand for corn-based ethanol by freeing refiners from their obligation to blend biofuels into their products.

The proposals emerged a day after U.S. President Donald Trump on Thursday summoned his Agriculture Secretary Sonny Perdue and Environmental Protection Agency Administrator Andrew Wheeler to the White House to discuss ways to boost biofuel demand.

First, the President extended the sale of E15 gasoline year-round, pleasing the ethanol lobby but angering both environmentalists and the oil industry. Then he turned around and issued waivers to a number of smaller and older refineries, exempting them from the ethanol blending mandates in the Renewable Fuel Standard. This pleased the refineries but angered the corn farmers who claimed that it gutted demand for their product.

And now, if these reports are true, President Trump will approve an increase in the already established ethanol blending levels for 2020 and 2021. This may partially assuage the anger of King Corn for a while, but with some refineries already having been exempted, the rest of them will have to blend even more corn juice into our gasoline. And that’s just going to tick off the oil and gas industry yet again.

How long can this go on? No matter what Trump does to curry favor with one group, the other one will be up in arms. He wants to play nice with the folks in Iowa, but he also needs to maintain the support of states with a lot of refineries, including Pennsylvania He can’t keep both of them happy at the same time, so it seems obvious that he needs to pick a side and stick with it.

Iowa was seen as critical in the 2016 GOP primary, but he doesn’t need to worry about them now. Pennsylvania was absolutely a huge factor in his general election victory and will be just as important next year. Is this really that tough of a choice? Besides, Donald Trump is supposed to be running as a conservative. The market for ethanol is largely an artificial creation of the federal government. Without the mandates in the Renewable Fuel Standard, that market would be far smaller. That’s no way to manage the free market.

The post The President needs to climb off the ethanol teeter-totter appeared first on Hot Air.

Westlake Legal Group ethanol-300x159 The President needs to climb off the ethanol teeter-totter The Blog Renewable Fuel Standard refineries mandates King Corn gasoline ethanol  Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

California gas tax makes state’s gas $1 more per gallon than the national average

Westlake Legal Group California-gas California gas tax makes state’s gas $1 more per gallon than the national average The Blog gasoline gas tax California

A new gas tax went into effect in California today which helped make California’s gas cost $1 more per gallon than the national average. From CNBC:

California’s already-high gas prices jumped up again on July 1, with a new 5.6 cents per gallon gasoline tax hike.

The increase brings the average price per gallon in California for regular gasoline to a national high of $3.755 per gallon, according to the American Automobile Association, more than a dollar a gallon more than the national average of $2.717 per gallon.

The hike takes California’s total statewide gas tax up to 47.3 cents per gallon, according to the state’s Department of Tax and Fee administration.

That doesn’t include local sales tax which is around 2% plus a federal gas tax of 18 cents. Also, those are the prices for regular gas. Premium costs an average of 25 cents more per gallon, making it just over $4 in California on average.

The new gas tax was put in place two years ago to raise $5.2 billion for road repairs in the state. Last year there was an attempt to repeal the tax but it didn’t pass.

I happen to have a friend who is leaving California for good this week. I spent part of the day Sunday visiting with him and saying goodbye. He sold his townhouse near the beach and will be moving to Florida where his new home is bigger, newer, and costs about 1/3 what his current home in CA just sold for.

My friend made a pitch that I should also consider leaving the state at some point. He pointed out that in addition to the more reasonable cost of real estate, Florida doesn’t have a state income tax. Also, the cost of electricity is substantially less than it is in California. That’s especially important for him because he owns an electric car. Just by moving he’ll wind up saving a considerable amount of money. He compared what is happening here to the old story about how to boil a frog, i.e. you keep turning the heat up slowly so the frog doesn’t jump out.

That’s pretty much what’s happening here in this one-party state. The cost of everything keeps going up but always a little at a time. Today it will be up 5.6 cents per gallon. Here’s an LA area news report on the increase:

The post California gas tax makes state’s gas $1 more per gallon than the national average appeared first on Hot Air.

Westlake Legal Group California-gas-300x159 California gas tax makes state’s gas $1 more per gallon than the national average The Blog gasoline gas tax California  Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com