Regulatory relief, not RFS reform, is key to ethanol growth: Ethanol Across America white paper
In Washington, a new white paper publsihed at EthanolAcrossAmerica.net contends that “the potential for corn ethanol to contribute to meeting a range of public policy objectives has only scratched the surface,” and that in order for corn ethanol production and use to move beyond the limits imposed by the RFS, the key is regulatory relief. The paper is authored by David VanderGriend, founder and CEO of ICM Inc, and president of the Urban Air Initiative.
The 15 billion gallon per year corn cap under the RFS is only relevant to the issuance of RINS (renewable credits), says VanderGriend and there is a huge market opportunity beyond the RFS. Specifically, he identifies the following as critical building blocks, all of which are within the ability of the US EPA to address:
· Correcting the MOVES model and the lifecycle analysis of corn ethanol
· Removing unnecessary vapor pressure restrictions that limit higher blend volumes
· Raising minimum octane levels in gasoline while enforcing limits on toxic aromatics
· Streamlining the process for the certification of higher blends like E30
· Reinstating flex fuel vehicle credits
Among other things, writes VanderGriend, these actions would allow automobile manufacturers to utilize ethanol’s high octane value and offer refiners more options. He explains that the dramatic increases in corn yields could create a surplus beyond our ability to store and export what could be billions of bushels of carryover.
Category: Policy
