Here’s How NCGA Thinks U.S. Farmers Could Find 1.8 Billion Bushels of New Corn Demand
Finding a new path for ethanol demand could come in the form of higher-octane fuels. National Corn Growers Association (NCGA) says the Next Generation Fuels Act would not only fit into the Biden administration’s current climate goals, but it would also drive up the domestic demand for corn.
As NCGA worked to set policy during Commodity Classic last week, everything from the Farm Bill to boosting ethanol demand was on the table. That's why the Next Generation Fuels Act continues to be a legislative priority for NCGA in 2023, as it would require automakers to phase in higher levels of what NCGA calls “clean, low-carbon octane” by model year 2031.
“When it gets down to actual bushels, some projections say it could create an additional 1.8 billion bushels in new corn demand,” says Neil Caskey, CEO of NCGA. “And so you can see why that is a real high priority of ours.”
NCGA says ethanol results in nearly 50% fewer greenhouse gas emissions than gasoline. The Next Gen Fuels Act would create higher octane levels for vehicles designed to use those types of fuels, supporting ethanol blends of up to 30%.
Caskey says NCGA is optimistic the bill that would establish an octane standard, will be introduced in both the House and the Senate. As an avenue to promote low-carbon, high-octane fuels, NCGA says it also improves vehicle efficiency and performance.
“Ethanol is a product that can address climate goals now. We're not waiting for anything to come online and for new technology to be available, ethanol can be put to work to address climate change right now,” says Caskey. “The price at the pump with ethanol is hard to beat. That is something that can lower the price at the pump. And so those are two incredible attributes that ethanol stands on.”
Caskey says state groups are taking the lead on working to get the Environmental Protection Agency (EPA) to allow the sale of E15 during the summer driving season. Just this month, EPA proposed a rule that would allow for year-round E15 sales in eight Midwestern states, but not until 2024.
In response, Iowa and Nebraska's attorney generals are warning EPA they will sue the agency for failing to allow year-round E15 sales this summer.
As the high ethanol blends battle plays out with EPA, Caskey says NCGA is focused on the national effort to establish a national octane standard.
“We are optimistic that with the Next Generation Fuels Act that there’s going to be a very bright future for ethanol, and that is why it's our highest legislative priority as we kind of head into the new year,” says Caskey.
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