Introduced in U.S. House
3:57 pm
Mon April 15, 2013

Bill Seeks to Cut Corn Ethanol Mandate

A bill introduced in the U.S. House of Representatives, last week, would remove the government mandate that requires corn ethanol to be blended with the U.S. Fuel supply.

The bill may have an effect on the bio-fuel industry even if it doesn’t pass.

Credit Discovery.com

It strips support for corn based ethanol out of the renewable fuels standard. It keeps support for bio-diesel and ethanol made form grasses and wood.

It’s not the first proposal of its kind in recent years.

Fred Iutzi  studies renewable fuels with the Institute for Rural Affairs at Western Illinois University.

He said since 2011, eleven attempts have been made to alter the RFS, thirteen if you count the proposals to get rid of it all together.

At this point there is so much volatility in Federal policy that it's just not viewed as reliable
Credit Western Illinois University

Iutzi said those in the industry have already taken notice when it comes to uncertain federal policies.

He said lenders and investors disregard federal incentives and mandates when deciding whether to invest in a new biofuel project.

"At this point there is so much volatility in Federal policy that it's just not viewed as reliable,"Iutzi said.

He also said the bill also has provisions to de-rail the Environmental Protection Agency’s efforts to mandate oil companies switch from gasoline mixed with 10-percent ethanol to a 15 percent blend.