Posted on 06/08/2022 7:36:05 AM PDT by dalight
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.
♦ 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.”
I buy the $5.45/gallon non ethanol for my small engines.
“increases an already expected food shortage”
That’s the point.
A 15% ethanol mix is ALREADY required for winter fuel blends. What does this third issue have to do with eliminating the transition to 10% ethanol?
Where do you find that?
“I buy the $5.45/gallon non ethanol for my small engines.”
What are you talking about
There goes my 1997 Ford Expedition! Can’t afford to be paying for a new car and don’t want to spend a bunch of money on a used car. Thanks Brandon!
Fourth issue cars built before 2001 are not designed to run on e15. This fuel will likely damage these cars. Of course these cars are owned by mainly owned by poor people. Don’t even get me started on small engines and the destruction ethanol does to those.
Increasing ethanol in gasoline is like shooting yourself in the foot and then going for a tighter group.
That’s what I do, too. We have a “Maverick” station in Coeur d’Alene that sells it from the blue-handled pump. They are the only station around that sells it. I’ve changed more small engine carburetors destroyed by ethanol blend than I want to count. Before the new Maverick station started selling it, I bought “Tru-Fuel” at $20/gallon. What a racket that company has!
It just REALLY hacks me off that ONE MAN in the entire nation can make this decision for everybody. If he destroyed tens of millions of old cars, it will be worse than Obama’s ridiculous “Cash for Clunkers” program. Expect the demand for newer used cars to explode as old cars are ruined. And ruined for NO GOOD REASON except to placate corn farmers.
It was hardly quiet. Very well publicized.
Don’t buy it if there’s doubt your car can handle it. Be mercenary. Even if our car can handle it, don’t buy it if the mpg difference isn’t a bargain. Don’t reward bad math.
It’s only available in a very limited number of stations.
There are products sold at auto part stores with enzymes that “ eat” the ethanol from this crap gas to protect your engine.
Gas treatment isle.
Unfortunately, the eliminated ethanol reduces your fuel mileage.
.
Go Brandon indeed.
Our local convenience store sells non-ethanol gas.
..... I was under the impression that the corn grown and used for Ethanol Production was actually different than the corn used for food .... So how can the government just wave a magic wand and increase production of Ethanol Use Corn ...... Not to mention the shortage of fertilizer that will stymie additional production of this corn.
Ethanol should be completely removed from gasoline. Eff corporatist farmers and the RINOs they elect.
One local convenience store in New York.
They want your cars destroyed.
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