May 11, 2010
(DTN) Growth Energy Files Petition
OMAHA (DTN) -– In a petition filed Monday, Growth Energy asked the California Air Resources Board to either delay the implementation of the low-carbon fuel standard or update the formula to reflect the results of an updated international indirect land use change analysis conducted by Purdue University, according to a news release from Growth Energy.
Right now, the state's LCFS excludes Midwest ethanol from the California's 1.5-billion-gallon market when the regulation takes effect in 2011, which could harm corn markets for U.S. farmers.
A new study from Purdue shows that CARB overstated the impact of indirect land use change penalties by as much as two-fold in its regulation.
ILUC is the theory that expanded U.S. corn-ethanol production is leading to land use changes in other countries.
In its petition, Growth Energy said CARB is bound by state law to use the "best available" science and that the new Purdue formula should be included in the regulation.
State law requires CARB to respond to Growth Energy's petition within 30 days. The agency can either agree to consider the requested change in LCFS at a public hearing, or by denying the petition, explain in writing why the petition is being denied.
The newest study by Purdue agriculture economics professor Wallace E. Tyner used updated economic data in the Global Trade Analysis Project economic model.
Recent revisions to the analysis cut corn ethanol's total emissions by about 10 percent of what has been expected in previous analyses.
The findings in a report to the U.S. Department of Energy's Argonne National Laboratory show that corn ethanol could be a somewhat better option than previously thought for reducing greenhouse gas emissions.
Tyner said revisions to the GTAP model better reflect market conditions and land productivity than a 2009 report that showed corn ethanol wouldn't significantly lower greenhouse gas emissions compared to gasoline.
Corn ethanol's GHG emissions total has become a subject of national controversy.
The U.S. Environmental Protection Agency also penalizes corn ethanol for ILUC in its low-carbon fuel standard, but to a lesser degree.
The new analysis predicts emissions related to land-use change at 35 percent lower than previous analyses.
Purdue economists ran three new ....
