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ethanol  renewable-fuel-standard  refiners  e8534 

Bob Greco

Bob Greco
Posted March 18, 2013

The Renewable Fuels Association this morning tweeted:

RFA Tweet

This is in many ways progress in that it is a de facto admissionthat RIN prices are rising because we are hitting the “blend wall” on ethanol, and that a solution is needed.  Unfortunately the solution in this case is crazy.

 From Platts:

Well-known energy economist Phil Verleger several years ago first brought up the likelihood that the refining industry might need to promote the sale of E85 as a way around the Gordian knot of a 10% ethanol blendwall combined with a rising mandate for the use of renewable fuels plus a decline in gasoline demand in the US…“The obvious solution to the RIN price problem involves no EPA intervention and no regulatory action at this point,” Verleger writes. “It simply calls for boosting E85 sales.”

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renewable-fuel-standard  e1534  ethanol 

Bob Greco

Bob Greco
Posted March 15, 2013

In a March 7 blog post, Renewable Fuels Association (RFA) President, Bob Dinneen claimed that the recent increase in RIN prices is not related to the E10 blendwall, and that the blendwall itself is a myth perpetrated by oil companies as an “excuse for their refusal to move to higher-level ethanol blends.”  He then makes a number of claims that were presumably intended to bolster his misplaced conclusion.  Conveniently, the post does not propose an alternative theory for RIN prices that have gone from 3 cents apiece to over $1, before retreating to about 70 cents today, in less than one years’ time.

The post also ignores that the petroleum industry is only one in a sea of voices raising concern over the negative impacts that E15 and unrealistically high ethanol blending requirements would likely have on on-road and off-road engines and fuel systems, gasoline retail infrastructure and dispensing equipment, the environment, the price of food, food security for the needy, and a laundry list of other health and safety issues.

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renewable-fuel-standard  ethanol-blends 

Bob Greco

Bob Greco
Posted March 14, 2013

On March 11, the Wall Street Journal (WSJ) Editorial Board published apiece accurately explaining where the RFS came from, what the blendwall is, why it is problematic and how it can contribute to raising gas prices.  The following day, the Advanced Ethanol Council (AEC) sent the WSJ what they claimed to be a “fact check” on the editorial board’s piece titled “RIN Credits for Dummies.”  Ironically, almost everything in their fact check was wrong.

Here are some of the claims AEC made and explanations of why they are inaccurate:

1. A RIN is produced when a gallon of renewable fuel is produced. Oil companies can then split the RIN from the gallon when they buy the gallon of renewable fuel and sell it on the open market. So, in essence, the oil companies are buying and selling RINs to themselves and then complaining about it to the Wall Street Journal.

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e1534  ethanol-in-gasoline  renewable-fuel-standard 

Bob Greco

Bob Greco
Posted March 12, 2013

We expect attacks from ethanol boosters over E15 gasoline, fuel that contains 15 percent ethanol, because their stated mission is to promote more ethanol use.  But, unfortunately for them, the science is clear; E15 has been shown to cause damage in some engines and fuel systems.

Pointing this out, citing tests by the Coordinating Research Council (CRC), an organization that’s the gold standard in terms of automotive research, has drawn some fantastic claims, most recently that the E10 (10 percent ethanol) “blend wall” – the point at which there isn’t enough E10 being sold to accommodate all of the ethanol mandated by federal law – doesn’t actually exist, more on that below. 

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consumers  e1534  epa34  ethanol  renewable-fuel-standard 

Mark Green

Mark Green
Posted January 29, 2013

There’s new research showing E15 (15 percent ethanol) fuel could damage vehicles, potentially stranding motorists and/or saddling them with expensive repair bills – one of a number of reasons the Renewable Fuel Standard (RFS) should be scrapped. Following on a report last spring that said E15 could damage engines and cars and trucks, the Coordinating Research Council (CRC) has a new study that found E15 can mess up fuel pump systems and fuel measurement systems, potentially affecting “millions and millions” of vehicles, Bob Greco, API downstream and industry operations director, said in a conference call with reporters.

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ethanol  energy-policy  e1534  consumers  regulation  renewable-fuel-standard  rfs34 

Mark Green

Mark Green
Posted November 30, 2012

AAA says the EPA and retailers should stop the sale of gasoline containing 15 percent ethanol, known as E15, because it could damage vehicle engines and void car manufacturers’ warranties.

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