The U.S. Environmental Protection Agency Tuesday proposed a new alternative fuel standard that will likely prohibit some corn ethanol production processes based on their greenhouse gas emissions and encourage other advanced biofuels.
The EPA decision walks a fine political line that attempts to placate a very large ethanol voter base - especially in the Midwest - and carves out a pathway to biofuels that emit fewer greenhouse gases over the production life-cycle. The new rule was required under the Energy Independence and Security Act, setting a standard for greenhouse gas reductions compared to conventional gasoline.
Although existing corn ethanol facilities will be grandfathered in, the EPA has proposed a rule that would prohibit some corn ethanol production processes such as the "dry gas mill" and "coal dry mill" methods. But by restricting some ethanol production processes, it provides a greater market incentive for advanced biofuel technologies.
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