National Journal:
As the Environmental Protection Agency readies next year’s
renewable-fuel standard, both biofuels producers and gasoline refiners
are poised to pounce. No matter where EPA sets the volume requirements
for ethanol and other biofuel blends in 2014, the standard is going to
face push-back.
“Groups
within the biofuel industry are fully committed to challenging the rule
in court if the EPA changes how it implements the standard,” said Paul
Winters, communications director for the Biotechnology Industry
Organization. “We want to see the targets continue to be set at the
highest-achievable level.”
The
biofuels industry is concerned about the 2014 standard because a leaked
draft of the proposal showed the agency might reduce the target for
renewable fuels from the statutory requirement of 18.15 billion gallons
to 15.21 billion gallons next year.
EPA
Administrator Gina McCarthy emphasized in a statement last month that
no decisions would be made until all stakeholders had an opportunity to
provide input, but the leaked draft made many ethanol producers nervous.
While reducing the requirement will definitely not be bullish news for the corn market, this would really kick the shit out of farmers:
A bill to eliminate the standard’s corn-based ethanol
requirements—sponsored by Reps. Bob Goodlatte, R-Va., Jim Costa,
D-Calif., Peter Welch, D-Vt., and Steve Womack, R-Ark.—is pending in the
House Energy and Commerce Committee.
That would destroy the frothy Midwestern land market. And that's why it most likely wouldn't ever happen.
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