Ethanol Blog
Todd Neeley DTN Staff Reporter

Tuesday 12/29/09

Renewable Fuel Rules Could be Published Soon

The U.S. Environmental Protection Agency may soon publish new renewable fuels standard rules that include how to best calculate the greenhouse gas emissions from ethanol and other biofuels, according to Prairie Farmer.

The U.S. Office of Management and Budget is reviewing the rule, which could penalize corn-based ethanol producers for so-called international indirect land use change -- or the planting of crops in other countries to compensate for the use of more corn acres in the U.S. for expanded ethanol production.

The Renewable Fuel Standard requires the production of 36 billion gallons of ethanol and other fuels by 2022.

Grain-based ethanol is required to produce 20 percent less greenhouse gas emissions compared to gasoline, while cellulosic ethanol and other advanced biofuels would be required to have 60 percent and 50 percent less than fossil gasoline, respectively.

(Prairie Farmer, Dec. 28, 2009)

(http://prairiefarmer.com/…)

DTN: Renewable Fuels Association President Bob Dinneen told DTN in a recent interview that there is a disconnect between the Obama Administration and agencies such as the U.S. Environmental Protection Agency when it comes to the future of renewable energy. That is, Obama has repeatedly stated his support for ethanol and advanced biofuels. On the other hand, recently EPA has made life difficult on ethanol with the proposed low carbon fuel standard and the delay on a move to E15. In addition, Dinneen said cellulosic ethanol developers are growing increasingly frustrated by the U.S. Department of Energy's loan guarantee program. He said program rules are difficult to navigate and not necessarily designed for cellulosic ethanol. Very few companies are actually receiving the guarantees. (Todd Neeley)

Posted at 10:25AM CST 12/29/09 by Todd Neeley
Comments (3)
Wow - let's wake up here - if we punish the U.S. ethanol producers by using the ILUC theory - it will only cause the foreign ethanol producers, like Brazil, to increase production - requiring land use change. If the ILUC theory is credible - to punish U.S. ethanol producers will only make the issue worse not better. Ethanol use is here to stay - like it or not - we need to allow the U.S. ethanol producers to grow and remove the choke-hold the EPA, via a flawed theory, is trying to achieve here.
Posted by Energy User at 9:52AM CST 12/30/09
Nice analysis Todd. The disconnect between Obama & the EPA is just like the disconnect between what he promises and what he does. He promised moderate policies and his actions take our country to the far left. (Govt take overs & higher taxes) He voices support for altenative energy, but the environmentalist at the EPA will continue to push energy prices up just as Obama wants it.
Posted by Craig Heisserer at 10:01AM CST 12/31/09
Craig, you may have mistaken a puppet for a puppeteer ...
Posted by S.D. Maley at 11:11AM CST 12/31/09
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