Market, production conditions will prevent meeting RFS

John M. Mayes Tom Hogan Turner, Mason & Co. Dallas US refining industry's compliance with the current Renewable Fuels Standard (RFS) appears impossible in the near future and could result in massive fines by the US Environmental Protection Agency. Current market and production conditions make industry efforts much like trying to pour 20 gal of ethanol into a 10-gal bucket. In creating the current RFS program, the Energy Independence and Security Act (EISA) of 2007 envisioned that ethanol would gradually be added into the base gasoline supply up to a level of 10% to produce E10; that level is referred to as the "blend wall." As this was being achieved, it must have been assum...

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