§4005 — Title 7 Agriculture | U.S. Code

Summary

Defines "fuel conversion price" as the price the Agriculture Secretary sets so gasoline mixed with crop alcohol competes with unleaded gasoline at the refinery after octane adjustment. The price uses national-average energy and byproduct values, direct and capital costs for a 40 million-gallon/year distillery, federal taxes, and incentives.

Title 7, §4005

Agriculture — Source: USLM XML via OLRC

As used in this chapter, the phrase “fuel conversion price” means the price for an agricultural commodity determined by the Secretary of Agriculture that will permit gasoline-alcohol mixtures using alcohol produced from the commodity to be competitive in price with unleaded gasoline priced at the point it leaves the refinery, adjusted for differences in octane rating, taking into consideration the energy value of the commodity and other appropriate values designed to represent, on a national average basis, the value of byproducts also recoverable from the commodity; the direct costs and capital recovery costs for a grain alcohol distillery capable of producing forty million gallons of alcohol and recovering byproducts annually; and Federal tax and other Federal incentives applicable to alcohol used for fuel.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this title”, meaning title II of Pub. L. 96–494, Dec. 3, 1980, 94 Stat. 2570, which enacted this chapter and section 1445h of this title, amended section 1444c, 1445b, 1445e, and 1446 of this title, and enacted provisions set out as notes under section 1445e, and 1445h and 4001 of this title and section 714c of Title 15, Commerce and Trade. For complete classification of title II to the Code, see

Short Title

note set out under section 4001 of this title and Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Dec. 3, 1980, see section 213 of Pub. L. 96–494, set out as a note under section 4001 of this title.

§4005 “Fuel conversion price” defined