Posted by NEKS on September 07, 2013 at 20:07:47 from (71.0.217.85):
In Reply to: NEW gas standards????? posted by JD Seller on September 07, 2013 at 14:29:08:
All this BS falls under the Renewable Fuels Act put in place by our federal goverment. This was put in place to force the general public to use ethanol. Used to have to have a label on the gas pump if you had ethanol blend. The corn grows association lobbyied and got the label removed hoping this would help them. A candy bar wrapper has to tell you whats in it, but not your gas pump. So the EPA under the Renewable Fuels Act has a mechansim that keeps track of ethanol fuels sold in the market. For each gallon of ethanol the refiners buy a uniquely identifiable Renewable Identification number is generated. At the end of the year each refiner has to possess the assigned numbers of RINs that must be deposited with the EPA. The problem is individual refiners may not really have as much need for ethanol as mandated for purchase. So there is another way out. If you sell a lot of ethanol you are going to have more RINS then the EPA mandated for you, so you can sell them. So the refiner does not have to buy the physical commodity but simply buy the RINS from you at the price you set. So the refiners got there heads together and said lets drop the octane from 87 down to 84 and put ethanol in everything. The refiners use to buy there ethanol from the terminals to add to there gasoline. Now they are going to buy it from the ethanol plants themselves and put it in the terminals. They may be buying or building there own ethanol plants soon. Every gallon of gasoline leaving the terminal will have ethanol blend in it.
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