[StBernard] Refinery change leaves Louisiana boaters high and dry in gasoline search

[Westley Annis]

Refinery change leaves Louisiana boaters high and dry in gasoline search

By Caitlin Laird and Jeffrey Bair | June 19, 2014 02:56 PM COMMENTS (2)

The ExxonMobil-operated Chalmette Refinery will no longer distribute
ethanol-free gas from the rack, a move that is making it more difficult for
Louisiana boaters to find compatible fuel for their boats.

In early May, the Chalmette Refinery in St. Bernard Parish announced that it
would no longer distribute ethanol-free (conventional) gasoline to the local
rack. The 200,700 b/d refinery had previously been the largest resource of
ethanol-free gasoline for the area, with many area businesses purchasing
fuel from the rack, a local distribution terminal. ExxonMobil, the operator
and co-owner of the refinery with PDVSA, continues to sell to the commercial
market, but acknowledges that the local market is affected by the change at
the rack. The decision was pushed through in an effort to "better comply
with the EPA's Renewable Fuel Standards," said Patrick Trahan, a spokesman
for the refinery.

The Renewable Fuel Standard program, which was the first federal effort to
establish renewable fuel volume mandates, was created in 2005 under the
Energy Policy Act and expanded in 2007 through the Energy Independence and
Security Act (EISA). The 2007 expansion introduced a requirement increasing
the volume of renewable fuel blended into transportation fuel from 9 billion
gallons in 2008 to 36 billion gallons by 2022, according to the EPA website.

The increased volume requirement of ethanol-blended gasoline is an
initiative to reduce greenhouse gas emissions, but the consequences of this
effort are leaving many boaters in southeast Louisiana upset. The state,
nicknamed Sportsman's Paradise, has a large outdoor recreation population,
many of whom require ethanol-free gasoline for their boats.

Older boats, especially those made before 1990, often have engines
incompatible with ethanol-enhanced gasoline (E10).

Albert P. Brown Jr. of New Orleans owns a 1965 34-foot Hatteras Sedan and
explains that he has to use ethanol-free gas because E10 "dissolves the
resin in the fiber-glass tank and also affects the fuel tank tubing." Brown
acknowledges that he is still able to purchase ethanol-free gas at the
marina, but insists that changes to ethanol-free gas availability are "very
detrimental because it discourages boating."

Brown's son, Albert "Burt" Brown III is quick to note that, although his
boat uses diesel rather than ethanol-free gasoline, ExxonMobil's decision
still angers him: "It doesn't just affect boat owners, but anyone who owns a
lawn mower." Ethanol dissolves the rubber hoses and clogs the carburetor in
small-engine lawn mowers. Boaters continue to be more vocal opponents to
ethanol-blended gasoline, however.

Many marinas sell ethanol-free gasoline directly to boaters, but the limited
availability of the fuel affects the price, which can run at a 25 cent
premium to the average $3.60/gal cost of E10 gas in Louisiana. For Louisiana
boaters hoping to purchase ethanol-free gasoline at their local convenience
store, the prospects are looking bleaker. On the website
petelandrysrealgas.com, a guide of ethanol-free gasoline sources in
Louisiana and Mississippi lists 1,674 locations, some of which have already
stopped selling ethanol-free gasoline in response to ExxonMobil's decision.

A QC Discount store, located only 4.3 miles from the Chalmette refinery, is
one such location. The local convenience store was forced to stop the sale
of ethanol-free gas after the announcement in early May, citing the
increased cost of buying from distant refineries. Manager A.J., who declined
to provide his last name, explained "although we can still find ethanol-free
gas to purchase, it's too expensive to be competitive, so we had to stop
offering it at our station." He added that some customers have been forced
to look elsewhere for gasoline, saying "it's upsetting because it puts us at
a disadvantage to larger business who can afford to purchase ethanol-free
gas from farther away."



E10 gasoline, which was first allowed in the U.S. markets via a waiver under
the 1979 Clean Air Act amendment, currently accounts for over 90% of the
U.S. gasoline market. With ethanol-free gasoline comprising a relatively
small portion of the market, the implications of Exxon Mobil's decision in
Louisiana are easy to understand. And boaters could face increasing
difficulty in finding conventional gasoline. On October 13, 2010 the first
partial waiver for 15%vol ethanol gasoline (E15) was issued, and its use is
currently permitted in flex-fuel vehicles and light-duty motor vehicles
manufactured after 2001. Some states would need to amend state laws to
permit the use of E15 in vehicles, but, if the fuel becomes widely
available, it would continue the trend away from ethanol-free gasoline.