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Explore the implications of Renewable Fuel Standard (RFS) on crop markets, including challenges, pricing dynamics, and regulatory changes. Learn about the impact of RFS mandates and EPA proposals on ethanol and biodiesel markets for a sustainable future.
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The RFS and Crop Markets: Where to from Here? Scott Irwin sirwin@illinois.edu University of Illinois
The Ethanol Market: No Mandate Price 5 bil. gal. = minimum for MTBE replacement Gasoline Blenders Selling Price Buying Price Demand Supply 1.1 x Pcbob Pe 13 bil. gal. = E10 blendwall Quantity 13
The Ethanol Market: RFS Mandate RFS 2011 Price Gasoline Blenders Selling Price Buying Price Demand Supply 1.1 x Pcbob Pe Quantity 12.6 13
The Ethanol Market: RFS Mandate RFS 2013 RFS 2011 Price Gasoline Blenders Selling Price Buying Price Demand Supply 1.1 x Pcbob Pe Quantity 12.6 13 13.8
The Ethanol Market: RFS Mandate RFS 2013 RFS 2011 Price Gasoline Blenders Selling Price Buying Price Demand Supply 1.1 x Pcbob Additional biodiesel mandate Pe Quantity 12.6 13 13.8
EPA Proposed 2014 RVOs E10 blend wall challenges drove EPA policy shift: “The proposal seeks to put the RFS program on a steady path forward - ensuring the continued growth of renewable fuels while recognizing the practical limits on ethanol blending, called the ethanol "blend wall.“ http://www.epa.gov/OTAQ/fuels/renewablefuels/documents/420f13048.pdf
EPA Proposed 2014 RVOs E10 blend wall challenges drove EPA policy shift: “The proposal seeks to put the RFS program on a steady path forward - ensuring the continued growth of renewable fuels while recognizing the practical limits on ethanol blending, called the ethanol "blend wall.“ Novel legal argument for renewable mandate write down: “inadequate domestic supply” http://www.epa.gov/OTAQ/fuels/renewablefuels/documents/420f13048.pdf
farmdoc daily: December 4, 2013 www.farmdocdaily.illinois.edu