E85 Boondoggle Of The Day: Missouri Escapes From E10 Mandate
This one isn’t so much a new boondoggle as the failure of an existing boondoggle. Falling fuel prices have triggered a clause in Missouri’s ethanol blending mandate, which allows retailers to sell unblended gasoline instead of E10. The Springfield News-Leader reports that gasoline is now cheaper than ethanol, which means station owners have the right to ignore a state law requiring pumps to sell the ten percent ethanol blend. “The gas price has really dropped tremendously and ethanol has not quite kept up with the pace,” said Ron Hayes, director of the Missouri Department of Agriculture’s weights and measures division, which monitors gasoline sales in the state. The drop in the price of oil has “really slowed down, if not stopped, any additional expansion of capacity” at the state’s six farmer-owned ethanol plants, said Gene Millard, president of the Missouri Renewable Fuels Association. “Plants are just not going to start up producing a product that’s showing negative pricing margins,” he said without placing blame directly where it belongs: ethanol mandates which have drastically elevated the price of corn. Aint it tough when markets don’t respond to your political agenda?