Posted originally on the conservative tree house on June 6, 2022 | Sundance

Earlier today, Joe Biden, working toward the agenda of Elizabeth Warren, Bernie Sanders, Wall Street multinationals, and the radical climate change activists within the far left of the socialist democrat party, declared a national emergency around the issue of U.S. energy prices and policies. [SEE HERE]

On the front side of the justification, the people in control of the Biden administration, claim that current and future increases in energy prices are likely to do severe damage to the economy and the lives of all Americans.  However, in the background of the issue, this is the ‘never let a crisis go to waste’ phase of an energy crisis the administration has intentionally created.

The real goal is to fundamentally transform the foundation of the U.S. economy away from fossil fuels and into a new era of clean renewable energy. This is what all of the Biden cabinet officers now refer to as the “economic transition” phase.

Joe Biden’s executive announcement today is the triggering of increased federal government control over the United States energy system.

Ideological government intervention, completely disconnected from the free market, is facilitated by the declaration of a federal national emergency:

[WHITE HOUSE] – Today, President Biden is authorizing the use of the Defense Production Act (DPA) to accelerate domestic production of clean energy technologies – unlocking new powers to meet this moment. Specifically, the President is authorizing the Department of Energy to use the DPA to rapidly expand American manufacturing of five critical clean energy technologies:

• Solar panel parts like photovoltaic modules and module components;
• Building insulation;
• Heat pumps, which heat and cool buildings super efficiently;
• Equipment for making and using clean electricity-generated fuels, including electrolyzers, fuel cells, and related platinum group metals; and
• Critical power grid infrastructure like transformers.

In deploying the DPA, the Biden-Harris Administration will strongly encourage the use of strong labor standards, including project labor agreements and community benefits agreements that offer wages at or above the prevailing rate and include local hire provisions. The Administration also will strongly encourage projects with environmental justice outcomes that empower the clean energy transition in low-income communities historically overburdened by legacy pollution.

Following this announcement, the White House and the Department of Energy will convene relevant industry, labor, environmental justice, and other key stakeholders as we maximize the impact of the DPA tools made available by President Biden’s actions and strengthen domestic clean energy manufacturing. (more)

The Biden administration then immediately triggered the Defense Production Act for the U.S. government to: (a) suspend tarrifs; and (b) take control over procurement for all key components needed in the transition from fossil fuel to solar energy.   The products will come from Southeast Asia as the main hub of solar equipment is not located within the United States. DPA Excerpt:

[…] exported from the Kingdom of Cambodia, Malaysia, the Kingdom of Thailand, and the Socialist Republic of Vietnam, and that are not already subject to an antidumping or countervailing duty order as of the date of this proclamation, and to temporarily extend during the course of the emergency the time therein prescribed for the performance of any act related to such imports. (read more)

The DPA emergency authorities have been given to the Dept of Commerce and the people working under Commerce Secretary Gina M. Raimondo, the former governor of Rhode Island.  Each of the DPA’s released today targets specific components of the solar industry [SOURCE LINK].

Obviously, this massive shift in the governmental takeover of energy development is part of facilitating the aforementioned “Green New Deal.”  The approach follows a pattern that is transparent for those who are capable of accepting things as they are, not as we would wish them to be.

Joe Biden shut down domestic energy development, cancelled pipelines, cancelled leases, retracted the ability to drill in ANWAR (Alaska), and triggered massive new regulatory approaches from the Commerce, Interior and Energy departments.  The resulting increases in oil, natural gas, gasoline, electricity and energy costs overall – which became fuel on the furnace of inflation, have now created the energy crisis that Joe Biden is declaring a national emergency to solve.

Biden himself has no idea what is happening; he is simply following the instructions of the policy operators who are in control of the administration.  It is the people in the circles of Elizabeth Warren, Bernie Sanders and the climate change activists within the DC bureaucracy that are executing the nuts-and-bolts shifts.  They tell Biden what to do, and he cluelessly does it.  We are the people who end up paying the price for their effort.

It would appear the primary goal is to push everything as fast as possible beyond an infrastructure threshold that could be reversed if/when the radicals are rebuked by the victims, us.

The democrat-socialists are ‘all-in‘ on this economic kamikaze mission.

The radicals took off on inauguration day with a nuclear economic device and only enough fuel for a one-way trip.  They are nearing their destination.

Posted originally on the conservative tree house on June 6, 2022 | Sundance 

Last Friday the Biden administration raised the mandatory amount of biofuel, specifically ethanol, that must be blended within the U.S. gasoline supply.  The previous amount of 10% (summer blend) was raised to a year-round 15% (waiver) by the Environmental Protection Agency (EPA).  This is likely to lead to two sets of bigger issues, less food and higher gas prices.

♦ First issue. – The Renewable Fuel Standard (RFS) is a government mandate, passed in 2005 and expanded in 2007, that requires growing volumes of biofuels to be blended into U.S. transportation fuels like gasoline and diesel every year.  Approximately 40 percent of corn grown in the U.S. is used for ethanol.  Raising the amount of ethanol required in gasoline will result in the need for more biofuel (corn).  With farming costs and outputs already under pressure this could be problematic.

♦ Second issue – The EPA enforces the biofuel standard by requiring refineries to submit purchase credits (known as Renewable Identification Numbers, or RINs) to the Environmental Protection Agency (EPA) proving the purchases.  This enforcement requirement sets up a system where the RIN credits are bought and sold by small refineries who do not have the infrastructure to do the blending process.  They purchase second-hand RIN credits from parties that blended or imported biofuels directly. This sets up a secondary income stream, a trading market for the larger oil companies, refineries and importers.

The RIN credit trading platform is similar to what we might expect to see if the ‘Carbon Trading’ scheme was ever put into place.   However, now that summer biofuel requirements for blended gasoline have gone from 10% to 15%, the price of the RIN credits will likely jump.  This will cost refineries billions in additional expenses,…. which will mean the cost of the gasoline from the refineries will increase,….. which will mean the cost of the gasoline at the pump will go higher.

The EPA theory is that RIN credits should be expensive thereby forcing all oil refineries to invest in infrastructure that makes the blended fuel.  All of the infrastructure from the refinery to the gas station would need to be modified to facilitate the new 15% RFS standard.  Again, higher prices at the pumps as a result of oil companies and refineries needing to spend billions on upgrades.   Which brings us to issue number three.

♦ Third Issue – “Ethanol is a valuable source of octane in finished gasoline, but it is chemically different than petroleum gasoline and cannot be used in concentrations above 10 percent in small engines — like outboard boat motors, motorcycles, lawnmowers, generators or chain saws — or in any cars made before 2001. Complicating matters further, most cars on the road today still aren’t warrantied to run on gasoline with more than 10 percent ethanol. Retail stations also must have compatible infrastructure in order to sell gasoline with higher ethanol blends.”  This issue is known within the industry as “The Blend Wall.”

The net result of Joe Biden’s EPA raising the mandatory amount of biofuel that must be present in the U.S. gas supply is this:

(1) Less food as more corn is needed for ethanol.

(2) Higher prices for finished and blended gasoline.

(3) Vehicle engines breaking down at a much higher rate. 

The predictable Biden outcome is the absolute worst scenario for the middle-class.

ABC Article on the EPA change HERE.

AFPM Background Information HERE.

WASHINGTON – “The American Fuel & Petrochemical Manufacturers group, which represents refineries, called the 2022 figure “bewildering and contrary to the administration’s claims to be doing everything in their power to provide relief to consumers.” The group said unachievable mandates will increase fuel production costs and keep consumer prices high.” (more)