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November 20, 2007
New! Pump Prices Being Forced Up!!!
by Jack Lee
The ARB is threatening to run up pum prices by a dollar! The ARB regulates fuel formula's and the democrats that controll the assembly and the senate that empowered them. They apparently think you won't mind paying $4.50 a gallon at the pump. Under the new ARB mandates signed into law by the Governor, for a 10% mix of ethanol, it would raise your current pump price by about $1.00 per gallon when all subsidies are included.
The new mandate is to take effect within 3 years. In order to accomplish this lofty task we will have to devote almost 40% of the state's crop growing acreage to growing corn for alcohol and we're going to need a lot of infrastructure to produce it all. This is going to have an inflationary effect on other crops and that has not been factored into that $1.00 increase and it's going to take a lot of borrowed money to build the infrastructure.
California is already spending more than under Grey Davis!
The end result of methanol is a mixed blessing at best. While it has a minor effect on reducing air pollutants it also produces carbon dioxide which the people at the ARB claim results in global warming. Currently California produces only about 12% of what will be needed to fulfill the mandate.
Posted by Post Scripts at November 20, 2007 08:30 AM