I was doing a little research for a upcoming blog article on Ethanol and found this little gem in wikipedia. Honestly, the accounting involved here made my head spin and forced me to try and find the answer to one monstrous mathematical word problem. The article is intended to be about how much Ethanol costs the average person. No one, that we've found anyway, has really explored how much it costs indirectly through repairs to older vehicles, outdoor power equipment and boaters. We're publishing this a little ahead of the article this research is intended - but I thought it was worth sharing. If there's an acountant out there who has the spare time to figure this little bit out, I personally would be grateful!
Since the 1980s, domestic ethanol producers have been protected by a 54 cent tariff on imports mainly intended to curb Brazilian sugarcane ethanol imports. Also, since 2004 blenders of transportation fuel have received a tax credit for each gallon of ethanol they mix with regular gasoline.[60][61] Historically, the tariff has been intended to offset the federal tax credit that is applied to ethanol no matter its country of origin.[62][63] However, several countries in the Caribbean Basin have been importing Brazilian ethanol, but not for domestic consumption, instead these countries reprocess the product, usually converting Brazilian hydrated ethanol into anhydrous ethanol, and then re-export it to the United States, gaining value-added and avoiding the 2.5% duty and the USD 0,54 per gallon tariff, thanks to the trade agreements and benefits granted by Caribbean Basin Initiative (CBI) and free trade agreements. This process is limited by a quota, set at 7% of U.S. ethanol consumption.[64]
Currently, blenders receive a US$0.45 tax credit for each gallon of ethanol that is blended with gasoline, regardless of the feedstock; small producers receive an additional US$0.10 on the first 15 million gallons produced; and producers of cellulosic ethanol receive credits up to US$1.01. Tax credits to promote the production and consumption of biofuels date back to the 1970s, and the current credits are based on the Energy Policy Act of 2005, the Food, Conservation, and Energy Act of 2008, and the Energy Improvement and Extension Act of 2008, and the tax credit is due to expire on December 31, 2011.[28] However, on June 16, 2011, the U.S. Congress approved an amendment to the economic development bill to repeal both the tax credit and the tariff on ethanol, but this bill has an uncertain future.[60][61]
A 2010 study by the Congressional Budget Office (CBO) found that in fiscal year 2009 the biofuel tax credits reduced federal revenues by around US$6 billion, of which corn ethanol accounted for US$5.16 billion and cellulosic ethanol accounted for US$50 million. A 2010 study by the Environmental Working Group estimated that the cumulative ethanol subsidies between 2005 and 2009 were US$17 billion. Considering the levels of ethanol production mandated by the Energy Independence and Security Act of 2007 (EISA), the same study estimates that the total cost to taxpapers will be US$53.59 billion if these tax credits continue to be extended until 2015, when 15 billion gallons are required by EISA.[65]
The CBO estimates that the costs to taxpayers of using a biofuel to reduce gasoline consumption by one gallon are $1.78 for corn ethanol and $3.00 for cellulosic ethanol. In a similar way, and without considering potential indirect land use effects, the costs to taxpayers of reducing greenhouse gas emissions through tax credits are about $750 per metric ton of CO2-equivalent for ethanol and around $275 per metric ton for cellulosic ethanol.[28]
To see the original Wikepedia article please click here.
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Karl Swanson
Owner/Manager
Mystery Bay Marine, LLC
Wednesday, September 14, 2011
Sunday, August 28, 2011
About Mystery Bay Marine
This is a reprint from Mystery Bay Marine's old blog provider, and it seems appropriate to publish it here, as it is important for everyone to know who we are before buying from us.
I asked several experts what I need to do to make Mystery Bay Marine an internet success, the answer - content. My follow up question? What kind of content? Overwhelmingly the next answer was to start blogging. Naturally, I want the website to get off the ground so the company gets a good start. So, here I am with Mystery Bay Marine’s first blog. I want to begin to form a community of sorts. With the blog I have a strong desire to establish a relationship with my readers. I encourage anyone and everyone to comment on what I write. The topics will vary; I plan on writing about everything from specific boats to politics; Global Positioning to EPIRB’s; from lighthearted to controversial. If you have a topic you would like me to address, let me know. My email address is on the Mystery Bay Marine website. I thought a good topic for a first blog would be the inspiration for founding the company and an outlook for the Boating Industry.
Mystery Bay Marine came about primarily as a result of my childhood. I’ve always had a fascination of boats. Big, Small, Power, Sail, Working boats – it really never mattered to me. When I was younger my Grandparents had some property on Marrowstone Island in Washington State, more specifically on Mystery Bay (hence the company's name.) Looking past Mystery Bay State Park, you could see boats of all shapes and sizes come in and go out.
My brother and I spent our summers visiting from Alaska helping our Grandparents clear the property for their eventual home. In the midst of clearing the trees, drilling the water well and getting the property ready for a home (approximately a 15 year process) – I would spend all of my free time down on the beach, watching vessels come and go. I knew that someday, somehow I was going to be a part of this ocean going life.
Now I’m grown, and decided I was ready to take part in that ocean going life. The main question was how to do it. I have served in the Army, worked for a national boating equipment retailer, an outdoor equipment dealer and finally took the plunge into the business world. I resolved that I, with the support of family and friends, could “do it better” than the boating equipment retailer I had worked for. The benefit of working for the outdoor power equipment dealer was to show me how much effort it takes and the satisfaction you can get from running a family business.
I established Mystery Bay Marine, LLC as a Delaware Limited Liability Company, primarily because it made the most sense financially. Currently the company headquarters is in Georgia. When my lovely wife Sarah, who is serving in the Air Force, completes her enlistment, we will relocate the business to Washington State. This is relatively easy as we are currently an online retail store at least for now. Once we have a little bit of growth and success, which I am sure we will, we will begin exploring the eventuality of a traditional “brick and mortar” storefront. The difficulty of getting a new company of the ground might be a daunting task, but one that is well worth it.
While the economy doesn’t seem to be improving, it also doesn’t seem to be getting worse. Some things that will help all of us I think are the getting back to the basics of life. Instead of shopping at the big box stores, visit a small local company. When you’re buying a product, be it large or small; remember there are thousands of small businesses out there as well as Veteran owned businesses that offer what you are looking for. When it comes to your boat, I hope you will consider Mystery Bay Marine as your source for equipment and accessories. Many people dream of owning their own boat, and my philosophy is that my company is here to provide you with quality pieces of your dream. I encourage all of you to visit the site at www.mysterybaymarine.com, follow us on Facebook at www.facebook.com/MysteryBayMarine or on Twitter www.twitter.com/MBMtwts.
God Bless.
Karl Swanson
Managing Member
Mystery Bay Marine, LLC
I asked several experts what I need to do to make Mystery Bay Marine an internet success, the answer - content. My follow up question? What kind of content? Overwhelmingly the next answer was to start blogging. Naturally, I want the website to get off the ground so the company gets a good start. So, here I am with Mystery Bay Marine’s first blog. I want to begin to form a community of sorts. With the blog I have a strong desire to establish a relationship with my readers. I encourage anyone and everyone to comment on what I write. The topics will vary; I plan on writing about everything from specific boats to politics; Global Positioning to EPIRB’s; from lighthearted to controversial. If you have a topic you would like me to address, let me know. My email address is on the Mystery Bay Marine website. I thought a good topic for a first blog would be the inspiration for founding the company and an outlook for the Boating Industry.
Mystery Bay Marine came about primarily as a result of my childhood. I’ve always had a fascination of boats. Big, Small, Power, Sail, Working boats – it really never mattered to me. When I was younger my Grandparents had some property on Marrowstone Island in Washington State, more specifically on Mystery Bay (hence the company's name.) Looking past Mystery Bay State Park, you could see boats of all shapes and sizes come in and go out.
My brother and I spent our summers visiting from Alaska helping our Grandparents clear the property for their eventual home. In the midst of clearing the trees, drilling the water well and getting the property ready for a home (approximately a 15 year process) – I would spend all of my free time down on the beach, watching vessels come and go. I knew that someday, somehow I was going to be a part of this ocean going life.
Now I’m grown, and decided I was ready to take part in that ocean going life. The main question was how to do it. I have served in the Army, worked for a national boating equipment retailer, an outdoor equipment dealer and finally took the plunge into the business world. I resolved that I, with the support of family and friends, could “do it better” than the boating equipment retailer I had worked for. The benefit of working for the outdoor power equipment dealer was to show me how much effort it takes and the satisfaction you can get from running a family business.
I established Mystery Bay Marine, LLC as a Delaware Limited Liability Company, primarily because it made the most sense financially. Currently the company headquarters is in Georgia. When my lovely wife Sarah, who is serving in the Air Force, completes her enlistment, we will relocate the business to Washington State. This is relatively easy as we are currently an online retail store at least for now. Once we have a little bit of growth and success, which I am sure we will, we will begin exploring the eventuality of a traditional “brick and mortar” storefront. The difficulty of getting a new company of the ground might be a daunting task, but one that is well worth it.
While the economy doesn’t seem to be improving, it also doesn’t seem to be getting worse. Some things that will help all of us I think are the getting back to the basics of life. Instead of shopping at the big box stores, visit a small local company. When you’re buying a product, be it large or small; remember there are thousands of small businesses out there as well as Veteran owned businesses that offer what you are looking for. When it comes to your boat, I hope you will consider Mystery Bay Marine as your source for equipment and accessories. Many people dream of owning their own boat, and my philosophy is that my company is here to provide you with quality pieces of your dream. I encourage all of you to visit the site at www.mysterybaymarine.com, follow us on Facebook at www.facebook.com/MysteryBayMarine or on Twitter www.twitter.com/MBMtwts.
God Bless.
Karl Swanson
Managing Member
Mystery Bay Marine, LLC
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