The Renewable Fuel Standard law as passed in 2005 mandated refiners blend a minimum of 7.5 billion gallons of renewable fuels by 2012. In 2007 the law was updated to mandate a minimum of 36 billion gallons by 2036. In 2011 the refiners were approximately 1 billion gallons in excess of the mandate for which they get credit.
As long as they are in excess of the mandate they do not need to blend renewable fuel (ethanol) with their gasoline. They are free to sell straight non-ethanol gasoline as long as they meet their mandate, after which the EPA is authorized to in force the fine.
The law has been updated since 2007 however I believe many/most refiners are still in excess of the mandate. So, no state law just a Ferderal mandate (minmumm) that needs to be met to avoid a fine. As I understand it refiners could actually sell all straight gasoline if they choose to pay the fine. That would suggest that if ethanol price rose significantly above that of gasoline, refiners could pay the fine and still sell straight gasoline at a lower cost than blended.
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Today's Featured Article - On the Road with Dave Gohl: Auction Musings - by Dave Gohl. I was thinking the other day about all the auctions I've been to in the last few years. There've been many. Some have been very good, some have been well, disappointing to say the least. But no matter how good or bad auctions may be, we always seem to stay until the item we've come for or are interested in is on the block. I've been to some auctions near and far. I think the furthest has been the Two Cylinder 7 in the Amana Colonies last year. Lots of stuff, lots of people. I've also atten
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