When first introduced on the market, ethanol was believed to be the life-saver of the nation’s energy industry. The corn-by-product fuel was thought to be the nation’s replacement for its domestic gasoline supply and provide corn producers a must-needed monetary bonus. But the the ethanol industry seems to be at a cross-roads. Congress has yet to act on an extension for a tax credit that will expire at the end of the year and the Environmental Protection Agency is standing in the way of higher blend levels.
Agriculture groups and ethanol supporters have been petitioning both law makers and the EPA for months but have seen little movement from either. New organizations seem to enter the fight daily, some wanting the fuel to become more main-stream others fighting to keep it at current blend levels. The automobile industry, which seems to be willing to create flex-fuel vehicles has now become unwilling to work with the industry and a coalition of organizations, including the National Resource Defense Council, now want to see blend levels held stagnent, citing high production costs.
American Coalition for Ethanol Executive Vice President Brian Jennings admits the industry has its work cut out for it.
“We are behind both the tax credit and increasing the belnds. We are fighting in Congress and working with the EPA and the Department of Energy,” said American Coalition for Ethanol Executive Vice President Brain Jennings. “We have to contiue to work on both issues but right now market access has become the premominate issues. We need to be sure there is demand.”
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When first introduced on the market, ethanol was believed to be the life-saver of the nation’s energy industry. The corn-by-product fuel was thought to be the nation’s replacement for its domestic gasoline supply and provide corn producers a must-needed monetary bonus. But the the ethanol industry seems to be at a cross-roads. Congress has yet to act on an extension for a tax credit that will expire at the end of the year and the Environmental Protection Agency is standing in the way of higher blend levels.
Agriculture groups and ethanol supporters have been petitioning both law makers and the EPA for months but have seen little movement from either. New organizations seem to enter the fight daily, some wanting the fuel to become more main-stream others fighting to keep it at current blend levels. The automobile industry, which seems to be willing to create flex-fuel vehicles has now become unwilling to work with the industry and a coalition of organizations, including the National Resource Defense Council, now want to see blend levels held stagnent, citing high production costs.
American Coalition for Ethanol Executive Vice President Brian Jennings admits the industry has its work cut out for it.
“We are behind both the tax credit and increasing the belnds. We are fighting in Congress and working with the EPA and the Department of Energy,” said American Coalition for Ethanol Executive Vice President Brain Jennings. “We have to contiue to work on both issues but right now market access has become the premominate issues. We need to be sure there is demand.”
