A global economic analyst expects that Washington may be taking another look at biofuels policy in 2013.
“I think more of that will happen when we know more about who controls the Senate and the House, and who’s the president and where the EPA is on all this after November,” said Bill Lapp of Advanced Economic Solutions during an Ag Issues Forum sponsored by Bayer CropScience this week in Nashville who notes that the biofuels industry is facing a number of challenges. “Not only is the corn-based ethanol mandate going from 13.2 billion gallons to 15 billion, gasoline consumption has continued to decrease in the past couple of years, and we have failed miserably in meeting the goals of cellulosic production.”
Lapp suggests there may be another incarnation of the Renewable Fuel Standard. “Whether you call it RFS-2A, or whatever you want to call it, I think there has to be thought to what are we going to make those ultimate mandates,” he said. “So Congress is going to have a tremendous challenge.”
Lapp also has concerns about biodiesel production, whether the tax credit will be re-instated, and what the mandate will be for 2013.
Listen to interview with Bill Lapp here: Bill Lapp Interview