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Government Regulations in the Energy Industry: Questions and Answers

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Government Regulations in the Energy Industry: Questions and Answers
Assignment

Unit 8: Assignment

Ty Pritchard

Government Regulations in the Energy Industry, ENRG 330

Instructor: Joshua Swanson
Date: 12/4/2012

Complete short answers to the following questions. Please include the question as part of your answer to facilitate grading.

1. Describe two initiatives established by the Clean Air Act Amendments of 1990 that have enhanced the nation’s demand for ethanol?
One Clean Air Act Amendment of 1990 required the use of oxygenates (such as ethanol) to be used in reformulated gasoline. Another Amendment required that reformulated gasoline be required in regions that violate standards set forth by the Act. This was implemented in 9 specific areas year-round, and wintertime only months in 39 more areas.

2. What is winter oxygenated fuel and what is the benefit to the environment?
Oxygenates are added to gasoline in order to reduce carbon monoxide, which can indirectly affect global warming. Carbon Monoxide does this by reacting with hydroxyl in the atmosphere. In 1988, Denver, Colorado was the first place to mandate oxygenated fuels be used during winter months. Adding oxygenates does however reduce the energy density of gasoline.

3. Describe three federal laws or policies that encourage the production of ethanol to be used as fuel?
The Energy Tax Act of 1978 was the first piece of legislation to encourage ethanol production by subsidizing it 40 cents for every gallon blended with gasoline. More recently, the Energy Independence and Security Act of 2007 required that at least 36 billion gallons of ethanol and clean fuel be blended with transportation fuels by 2022. Before that, the Energy Policy Act of 2005 created the Renewable Fuels Standard (RFS). The RFS mandated that a certain amount of renewable fuel be used in the production of gasoline.

4. Describe the renewable fuels standard established by the Energy Independence and Security Act of 2007?
The Renewable Fuels Standard (RFS) sets minimum requirements of



References: Renewable Fuel Standard (RFS) Program. http://www.afdc.energy.gov/laws/law/US/390 Other Indirect Greenhouse Gases - Carbon monoxide. http://www.ghgonline.org/otherco.htm Week 8 - Alternate Energy – Lecture. Bismarck State College. Farmer’s Guide to Wind Energy. Farmer’s Legal Action Group, Inc. Shoemaker, Jessica

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