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EPA Approves Increased Ethanol Blend, USDA Announces New Biofuels Initiative

November 5, 2010


EPA Approves Increased Ethanol Blend, USDA Announces New Biofuels Initiative

Last month, the Environmental Protection Agency (EPA) partially granted Growth Energy’s waiver request application to allow fuel and fuel additive manufacturers to introduce gasoline that contains up to 15 % ethanol (E15) for use in certain late-model motor vehicles.

As ethanol production increases to meet this demand, it is very possible that significantly higher feed prices will result. NMPF believes this is exactly why Congress should pass Foundation for the Future, including the Dairy Producer Margin Protection Program. Margin protection was specifically designed to protect producers against unforeseen or excessive feed prices caused by government programs to incentivize renewable energy programs, increases in demand, and/or shortage in stocks or production yields.

Meanwhile, Agriculture Secretary Tom Vilsack announced several measures to further develop our nation’s biofuel industry. To spur the production of new, non-food, non-feed biomass crops, USDA published the final rule to implement the Biomass Crop Assistance Program (BCAP). BCAP will provide farmers with assistance to encourage the establishment and production of eligible renewable biomass crops. Vilsack also announced a new partnership with the Federal Aviation Administration to develop and produce aviation fuel from forest and crop residues. Coinciding with the FAA agreement, USDA is also establishing five USDA regional Biomass Research Centers. These centers will be a collaboration between the Agricultural Research Service (ARS) and the U.S. Forest Service (FS).