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Ethanol regs.

Posted by david1 (My Page) on
Fri, Feb 17, 06 at 10:58

Just wondering what implications this has on all the building of ethanol plants. Of course the price of corn and the price of oil have direct implications but those are inputs. Mandated govt. regs. seem to imply a demand for product. Outside of a discussion that cheap oil and govt subsidies drive corn production in the US...wondering if relaxed need for oxygenators in gas will have a significant impact on ethanol demand. David

http://www.epa.gov/otaq/regs/fuels/rfg/420f06020.htm

The U.S. Environmental Protection Agency (EPA) is amending the reformulated gasoline (RFG) regulations to remove the oxygen content requirement and associated compliance requirements. Because the 2005 Energy Policy Act provided for different compliance dates for the removal of the RFG oxygen requirement in California and the rest of the country, EPA is implementing the removal of the oxygen requirement in two separate rules. One direct final rule removes the RFG oxygen requirement and related compliance requirements for California gasoline. The effective date for this rule is 60 days from the date of publication of the rule. The other direct final rule removes the oxygen requirement for RFG nationwide. The effective date for this rule is May 5, 2006, (270 days from enactment of the Energy Act), or 60 days from publication of the rule in the Federal Register, whichever is later.
These direct final rules also revise the current prohibition against combining volatile organic compound (VOC)-controlled RFG blended with ethanol with VOC-controlled RFG blended with other oxygenates. The revision also prohibits combining VOC-controlled RFG blended with ethanol with non-oxygenated VOC-controlled RFG, except in limited circumstances authorized by the Energy Policy Act of 2005.


Follow-Up Postings:

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RE: Ethanol regs.

I suspect that new regulations on reformulated gasoline will reduce the demand for ethanol, and adversely affect the price of ethanol, from the producers standpoint. I don't see how these changes in EPA regulation can be good news for those who are invested in ethanol plants. There have been claims made that the production of ethanol consumes more energy from crude oil input than the ethanol output can match. If that is true, then it follows that reducing the demand for ethanol will also reduce the demand for crude oil.


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RE: Ethanol regs.

I really asked the wrong question, and realized that after the fact...I think my question has more to do with the lack of need for ethanol as an oxygenator. Are there better additives or just relaxed rules?


 
 

 

 


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