Purdue economist says EPA should drop 2014 blending by 2.3 billion gallons

In Indiana, a Purdue economist says that US biofuel production could reach 15.85 billion gallons in 2014, about 2.3 billion gallons shy of what the EPA is expected to mandate for blending. Much of that reduced production will come for a lack of cellulosic ethanol availability, though some of those gallons are from corn ethanol as well. He says that part of the problem is that gasoline demand is only at 133 billion gallons, down from the 141 billion gallons consumed in 2007 when the volumetric blend rates for the RFS were calculated.