Ethanol Blog
Cheryl Anderson DTN Staff Reporter

Thursday 05/29/14

Lowering RFS Could Damage DDG Trade

A decision by the federal government to lower the Renewable Fuel Standard could have serious implications for distillers grains users.

According to an Associated Press article in Iowa Farmer Today (http://bit.ly/…), the law was designed to reduce the nation's reliance on foreign oil and cut automobile emissions. Officials from the Environmental Protection agency now say that fewer gallons of ethanol are necessary because of improvements in fuel efficiency of newer vehicles.

A decision by the EPA to lower the RFS would lower ethanol production and could stifle growth in the industry, ethanol industry officials claim. Likewise, lower ethanol production would lower production of distillers grains, sending prices skyward and likely reducing its choice as a protein source for livestock rations. This could also cut exports of distillers grains, as well as an important source of income for ethanol plants.

Officials in corn-growing, ethanol-producing states are making a serious effort to convince EPA not to lower RFS requirements, while the petroleum industry lobbies against raising the RFS, maintaining that many vehicles are not certified to run on higher-ethanol blends.

The EPA plans to reach a final decision on the RFS by late June.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.

(ES)

Posted at 2:23PM CDT 05/29/14 by Cheryl Anderson
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