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January 01, 2008 | Jim Lane | Comments 0

Missouri E10 mandate takes effect today; “transition already near complete”; joins Minnesota and Hawaii as only three E10-mandating states

In Missouri, an E10 mandate takes effect today. With the new law, Missouri joins Minnesota and Hawaii as the only states mandating E10. Most Missouri stations switched months previously, and the transition is expected to be very smooth. “That’s why we anticipate the January 1 transition to be a nonevent.”

Missouri has a unique feature in its ethanol mandate allowing fuel retailers to switch back to unblended gasoline if the price of ethanol exceeds the price of gas. There are concerns that, if the price of ethanol drops below gas and retailers again sell E10, that they will have co-mingled fuels in their tanks that would bring them below the minimum blending requirement.

On the fuel side, Missourian ethanol plant development has slowed to a standstill, indicative of a national trend, according to the state’s Department of Natural Resources. After boom conditions in recent years, no new plants have submitted new or revised permit applications since July, and of three plants that had previously received construction permits, none have proceeded to begin construction. The approved but not as-yet-built plants are Bootheel Agri-Energy, Renewable Power of Missouri and Ethanex.

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