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Home » Business News/Analysis, Environmental Protection Agency, Federal Agency, Federal Regulation, Opinions, Policy, Texas

Ethanol Credit Spike Divides Gas Stations

Submitted by on August 24, 2016 – 6:43 pmNo Comment

by James Osborne (FuelFix)  Now gas station owners say they, too, are losing out after the price of RINs –  the credits which refineries must have to prove there is ethanol and other biofuels in the fuel supply  — shot up close to 40 percent since the beginning of the year.

A paper commissioned by the Small Retailer Coalition, and written by Bud Weinstein, an economist at Southern Methodist University’s Maguire Energy Institute, says smaller, independent gas stations are being undercut by larger chains like Circle K and Sheetz that blend their own ethanol and can sell the resulting credits at a profit.  READ MORE and MORE (CSP Daily News)  Download Study

 

Excerpt from CSP Daily News:  The Small Retailers Coalition is a Washington, D.C.-based organization that formed this past July, right at a time when RIN values were soaring toward the 2013 high. The group’s founder is a familiar, respected industry veteran: Bill Douglass, chairman and founder of Douglass Distributing, Sherman, Texas, which has more than 20 Lone Star convenience stores and supplies more than 170 sites.

Late this past July, the group sent a letter to Janet McCabe, acting assistant director for the EPA’s Office of Air and Radiation. In the letter, Douglass asks the EPA to shift the point of obligation down to the rack.

The Small Retailers Coalition is small, with about 50 members so far. But its main goal is simply to get the EPA to reconsider whether the current RIN setup is helping the agency meet the intention of the RFS.   READ MORE

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