This is from FarmPolicy blog, sponsored by the law firm McLeod, Watkinson, and Miller

DTN writer Todd Neeley reported yesterday  “The future of U.S. corn-based ethanol could hang in the balance as the California Air Resources Board prepares to consider a proposed low-carbon-fuel standard during a public hearing Thursday in Sacramento.

“For the past year ethanol industry officials have criticized the proposed regulations for penalizing corn-based ethanol for indirect-land-use changes when calculating ethanol’s carbon score, while not making the same calculations for other fuels.

“The regulation could lead the way for other states and countries to adopt similar laws that could hurt ethanol’s market.”

The DTN article stated that, “California would consider corn-based ethanol to be a greenhouse gas emissions contributor if the regulations are approved.”

The article explained that, “James Hrubovcak, deputy chief economist for USDA, said Monday some of the models being considered by CARB would effectively eliminate the state from using any ethanol from the Midwest to help reduce California auto emissions, though some ethanol from California could be used.

“That could be a major blow to ethanol marketers, considering California represents close to 12 percent of all U.S. gasoline sales.

“Eleven Northeast states are ready to adopt the California standard, Hrubovcak said, which could shrink the U.S. ethanol market by about 30 percent.

“‘If they move down that path, that’s a big market that corn-based ethanol could potentially lose,’ Hrubovcak said.”