by Jeff Steir
Oral arguments began last week on another controversial Obama
Administration policy. It's not Obamacare in the Supreme Court, but the
outcome will affect a major sector of the economy: energy. In
particular, the fuel most Americans use daily.
At issue is the administration's continued abuse of science at the
agency level in an effort to dictate what type of energy we use.
The Environmental Protection Agency has fast-tracked the approval of a
50 percent increase in the amount of ethanol that can be mixed into the
fuels we use in our cars and other engine-run vehicles, such as boats
and snowmobiles. There's nothing necessarily wrong with such a major
increase in ethanol, (from 10% to 15% total,) but the law requires and
common sense dictates that the EPA test the new fuel mix in all engines
in which it would be used, to make sure it works properly and doesn't
damage the engines. The lawsuit alleges that EPA failed to properly do
so in approving use of so called E15 fuel.
For example the EPA only evaluated E15's impact on automobiles'
emissions systems, rather than how it affects the entire car, "bumper to
bumper," as Charles Drevna, President of the National Petrochemical and
Refiners Association, a lead plaintiff, put it in a recent interview with the trade publication Energy and Environment News.
Perhaps even more troubling, according to Drevna, is that the EPA's
"testing didn't come in until the day before they announced, or they
published the regulation." There's simply no way the testing could have
been fully considered (as required by law) in the next day's
rule-making, not even if the bureaucrats stayed up all night before
filing the paperwork.
The rush to approve a new type of fuel is especially striking given
the administration's otherwise hyper-risk-averse approach to regulation
in general and energy regulation in particular. Just consider the
administration's precautionary approach to the Keystone pipeline, where
more than three years of studies and far more safeguards than the law
required still weren't enough for the administration to approve the
plan. Yet when it comes to decisions about a fuel source that the
president considers to be "green-energy," the rules change and caution
is thrown to the wind turbine.
This is not how science-based regulatory decision-making is supposed to work.
Q: What type of science did the EPA really use to quickly approve the high-ethanol fuel mix?
A: Political science.
Although we don't fully know the effect that the high ethanol fuel
will have on engines, (because the EPA didn't do a thorough assessment)
we do know that preferential treatment of corn-based ethanol would be a
boon to the president's electoral chances. Increasing the amount of corn
used to fuel our engines will significantly increase demand for corn.
Not only will the price of ethanol increase, but the cost of corn we use
for food, animal feed, and all sorts of other important consumer uses
will rise as well. Iowa, the president's home state of Illinois, and
other corn-belt states are crucial to President Obama's re-election
strategy. Giving a free-ride to ethanol is sure to curry favor in the
Corn Belt.
But vote-winning politics rarely makes for good public policy. Hasn't
the administration learned anything from the Solyndra debacle? The
lesson was supposed to be that the government shouldn't be using its
muscle, be it taxpayer dollars or rule-making authority, to choose
energy winners. That is a decision for consumers to make.
Sure, there's a proper role for the EPA here. But the people, through
congress, granted the EPA authority to regulate these matters to
protect the environment, not the president's electoral chances.
While the legal issues being argued next week may be technical, the
abuse of regulatory power should be plain for all to see. We've got an
administration that drags its feet on regulatory matters related to one
disfavored energy source, while giving preferential treatment to a
favored fuel source from an electorally critical region. When politics
displaces science at a powerful agency such as the EPA it is an abuse of
regulatory powers. The same types of allegations had critics howling at
the Bush EPA. Yet here the critics are silent. Why? If it isn't just
politics, perhaps it is because of the faulty perception that ethanol is
a safe, green, renewable energy source with no downside, risks or
unintended consequences.
Just as the Obamacare case is renewing interest in not only the
constitutional issues, but the public policy considerations of the
healthcare law, the E15 case being heard this week should prompt us to
ask the administration why it continues to abuse its regulatory powers
for political purposes and picking winners in the energy sector.
Big Government