Ethanol
Has U.S. gasoline demand peaked? And what will more electric vehicles mean for gasoline prices down the road? John Phipps looks into the issue in John’s World.
“These tax credits, which encourage the use of more eco-friendly fuels, could make or break the prospects of corn ethanol as a sustainable aviation fuel,” says Jim Wiesemeyer, ProFarmer policy analyst.
“There’s no question of the law, science or anything. They’re simply not doing their job,” says Monte Shaw, Iowa Renewable Fuels Association executive director.
In just a few years the farm financial pendulum swung from shaky to stable, according to the 2022 Agricultural Lender Survey report by the American Bankers Association and Farmer Mac.
With the popularity of electric and hybrid vehicles growing, long-term gasoline use could drop, taking ethanol consumption with it. Will ethanol continue to be the juggernaut in the corn market?
“Nearly two decades of data prove that the supposed ‘cost’ to refiners is an accounting fiction, and EPA’s decision reflects those facts,” said Emily Skor, Growth Energy CEO.
Under the Clean Air Act, those affected by this decision have the right to request a judicial review with the US Court of Appeals within 60 days of the notice’s Federal Register publication.
There is now a dollar value assigned to grain carbon intensity scores below 29 in the form of tax credits to biofuel plants that buy grain as part of their decarbonization efforts.
EPA released biofuel blending obligations under the Renewable Fuel Standard on Tuesday. While EPA says the decision will reduce reliance on oil imports, some biofuel industry leaders do not approve.
EPA’s 479-page RFS ruling can be difficult to sift through and interpret. Jim Wiesemeyer breaks down the heavy-hitting components that will impact producers.