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Ethanol getting the green -- the Supreme Court refusing to block the sale of the fifteen that's a higher -- the percentage of ethanol in gasoline.
Despite criticism from groups in the -- and refinery industries here away and -- ever ex associate editor for consumer reports car.
Air -- -- you so -- this Supreme Court decision that ultimately keeps.
-- or will it.
They haven't been able to sell enough alternative fuel 85 cars that use a higher blend of ethanol so there's a way to spread the available ethanol into.
More cars essentially.
It's been approved for use in all cars since built since 2011.
-- -- -- You don't look for 2011 still on the road -- you know obviously in -- is really raising concern you're saying more testing needs to be done.
Yeah ethanol is corrosive and the auto -- since 2007.
Have addressed that from the standpoint -- materials used in the engine in the fuel system.
But they still are refusing to warranty cars from 2007 to 2010.
Cars before that are a little more questionable from 2001 to 2006 it's a matter of these dueling studies where the government.
Has studied these cars and -- oil industry.
And the auto industry had a differing opinion they've done their own studies.
The EPA the government say that their studies are flawed because those cars were prone to break anyway.
So do we have a solid proof of the environmental benefit of using this blend of gasoline.
It's actually marginal I think it's more of a benefit for the country from an economic standpoint to avoid.
You know exploring essentially half a trillion dollars a year overseas to bring in more oil for cars and as far as fuel economy did.
Ethanol in general is a little worse thing gasoline is about 30% were so reduced that to.
You know -- factor of fifteen point 15% of it being at an all we would expect it to have an effect.
You know at most maybe one mile per gallon.
And as far as performance of cases so far marginal environmental benefit -- it's.
You will miles per hour and and what about overall car performance -- got in some -- -- for the driver.
Car performance is about the same the engines could be tuned to to take advantage of that -- -- -- -- has a higher octane in gasoline.
So if auto makers were able to plan for -- -- -- assumed that all feel was going to be higher percentage of ethanol.
They could then take advantage of that and -- a little more performance out of the engines and potentially even downsized engines a little bit -- to make up for some of that fuel economy.
OK so currently.
How is it being -- Com there's people in those states as I understand it.
-- -- and the -- and are interested in it but it's not gaining much traction outside in the midwest over six states out there in just a handful of stations.
One of the issues is actually the the pumps at the gas stations.
The gas stations would have to install.
You know what -- replace one of their pumps with something that certified to to pump -- higher blend of ethanol and that's an expensive proposition for them.
So Eric -- you know five years down the road are we going to be in a gas market where you have a choice.
Regular grade gasoline mean what is -- -- gas pump market gonna look like are we going to have choices as drivers.
Potentially I think you know through the midwest you already have choices and higher blends of ethanol in Minnesota and Illinois and some of these other midwestern states you can choose 85 fairly readily.
But it's not gone much beyond that what it would take is.
More refining of ethanol and a larger quantity of it out there and it's kind of an open question.
What it would take to get that economically going -- one other thing is.
That there -- Working on to try to get that to happen is just have a larger market.
Right and every you know its peak driving season right now as we start the summer here price have to be a factor too for the -- in the stations of the midwest my understanding is it's a little cheaper.
But it's not a night and day difference.
Eric thanks appreciate your analysis thanks thank you learn.
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