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Discussion Starter #1
Here is the money quote from the article.

The most publicized issue related to renewable fuels has been the ethanol “blend wall,” the theoretical point at which ethanol use will be surpassed by the amount of ethanol required by law. As Americans drive less, demand for gasoline falls also reducing demand for ethanol. Because blenders are required either to use the mandated amount, regardless of demand, or pay for credits for the amount they don’t use, the EPA has been granted authority by Congress to adjust the mandated levels if necessary.

The EPA ruled today that the mandated 16.55 billion gallons of renewable fuels will not be changed. The major change to the mandated levels came in the area of cellulosic ethanol, where the 1 billion gallon statutory mandate was reduced to 6 million gallons, reflecting the reality of the situation with cellulosic ethanol production.

If I read this correctly, even though the demand for gasoline has declined because of the weak economy, the amount of mandated ethanol use remains the same. So what do gasoline producers do with all the extra ethanol?

Makes one wonder about the E15 mandate, doesn't it?

You can read the entire article here.


Copper
 

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Here is the money quote from the article.

The most publicized issue related to renewable fuels has been the ethanol “blend wall,” the theoretical point at which ethanol use will be surpassed by the amount of ethanol required by law. As Americans drive less, demand for gasoline falls also reducing demand for ethanol. Because blenders are required either to use the mandated amount, regardless of demand, or pay for credits for the amount they don’t use, the EPA has been granted authority by Congress to adjust the mandated levels if necessary.

The EPA ruled today that the mandated 16.55 billion gallons of renewable fuels will not be changed. The major change to the mandated levels came in the area of cellulosic ethanol, where the 1 billion gallon statutory mandate was reduced to 6 million gallons, reflecting the reality of the situation with cellulosic ethanol production.

If I read this correctly, even though the demand for gasoline has declined because of the weak economy, the amount of mandated ethanol use remains the same. So what do gasoline producers do with all the extra ethanol?

Makes one wonder about the E15 mandate, doesn't it?

You can read the entire article here.


Copper


They probably burn it we still pay for it with gov. subsidies paid for manufacturing it. Or what it's really called "KICK BACKS ":twisted::twisted: FRIENDS HELPING FRIENDS


The way I see it is if the farmer can't sell his corn then the Mfg. of Ethanol doesn't produce so that means contributions to the fund to keep Gov. happy is less( not a good thing ) so they get cut back on subsidies and you know the rest we get it in the A$$ as usual.
 

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Discussion Starter #3
A Wall Street Journal article reporting on the new EPA renewable fuel rules (as reported above). Pretty dry reading ... until you get to the part of the report where the EPA is requiring refiners to use the same amount of ethanol in a declining market. This is money quote. The emphasis in the second paragraph is mine.

This matters because for refineries to stuff ballooning amounts of ethanol into a static gas pool, they must blend it at levels of more than 10%. Since the nation's auto makers have declared they will void the warranties of cars using gas with more than 10% ethanol, refineries face lawsuits. Most have instead turned to buying federal renewable "credits" to make up for the ethanol they don't blend.

As demand for these credits skyrockets, so has the price—jumping from a few pennies a gallon last year to close to $1 a gallon today. Oil refiner Valero has said the credits could raise its cost by a stunning $750 million this year, a hit that will be passed on to consumers. PBF Energy just told investors that its disappointing second-quarter earnings were rooted in the mandate, noting that the $200 million it expects to fork over for ethanol credits this year will exceed the salaries and wages that it pays to operate all three of its refineries.

You can read the entire article here.


Copper
 
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