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Ethanol credits drive up the cost of doing business


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If you want an example of a regulation driving up the cost of doing business, look no further than the Environmental Protection Agency's ethanol mandate, which also creates uncertainty for a segment of the refinery industry.
At issue is the rampant volatility of what are called Renewable Identification Numbers. Most merchant and small refiners have to buy these RINs to comply with the Renewable Fuel Standard.
It's a cost that stems directly from the need to comply with a federal program, not to buy or build new assets or expand the use of a product. RINs add to the cost of running a small or merchant refinery for no other reason than to demonstrate compliance with the government's wishes.:snip:

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