Keeping An Eye On The RFS

Keeping An Eye On The RFS

Keeping An Eye On The RFS. I'm Greg Martin with today's Line On Agriculture.

Ag leaders are bracing for the possibility the EPA next month may issue a revised Renewable Fuel Standard that could do long-term damage to the industry and development of advanced biofuels. The EPA was expected to send to the White House for final review this week its proposed new rule for the RFS. Iowa Senator Chuck Grassley wants the agency to leave the RFS alone - but that's not what he expects EPA Administrator Gina McCarthy to do.

GRASSLEY: I think she's probably going to find a middle ground. I don't think she's going to be as extreme as her November prospective rule was but whatever it's less than 14.4 billion, it's going to send a signal to big oil that you don't have to convert.

EPA proposed 13-billion gallons of conventional biofuel production this year - not the 14.4-billion in the original RFS-2 schedule - and it left unchanged last year's 1.28-billion gallon biodiesel target despite record production in 2013. Grassley says EPA's in a bad position and expects it to try to look good to all sides - which will have a chilling effect on next generation biofuels investment.

GRASSLEY: Whatever she does to the mandate for grain ethanol is going to have an indirect impact on cellulosic ethanol. If we don't keep the mandate going for both it is going to lead to a harm to the entire ethanol industry.

That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.

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