A bipartisan group of lawmakers has introduced legislation that would eliminate corn from the country’s ethanol mandate requirement.If they do this, expect a severe drop in corn prices and numerous ethanol plant closings. I'm pretty sure the strength of Big Corn and their ethanol juggernaut has peaked. The at least short-term growth in oil production due to shale oil has strengthened Big Oil to go after their mortal enemies in the grain alcohol industry.
The bill, introduced by Sens. Dianne Feinstein, D-Calif., and Tom Coburn, R-Okla., would greatly diminish the prominence of the Renewable Fuel Standard by removing the component that requires fuel to be made from corn. Smaller mandates for advanced biofuels such as cellulosic would remain in place. The Renewable Fuel Standard, put in place in 2005 and strengthened two years later, requires refiners to blend 16.55 billion gallons of biofuels in 2013, most of it from corn.
The 10 senators, all of them from states that are not major corn producers, said the maize component of the Renewable Fuel Standard has made food more expensive for consumers, pushed up the cost of animal feed for livestock farmers and harmed the environment.
The head of Growth Energy, which represents the ethanol industry, called the legislation “incredibly shortsighted.”
Sunday, December 15, 2013
Lawmakers Push To Remove Corn From Ethanol Mandate
Expect more of this: