Embed Size (px)
DESCRIPTION
tax credits Given to fuel blenders per gallon blended ethanol tariffs Specific tariff on imports from most countries Renewable Fuel Standard Minimum levels of biofuel use by class (4) Renewable Identification Numbers (RINs) are used to ensure compliance with the RFS. Obligated parties get required RINs by using biofuels or by buying RINs from others who have used biofuels in excess of their obligations.
Citation preview
Seth Meyer ([email protected])FAPRI-MU (www.fapri.missouri.edu)
University of Missouri
Breimyer SeminarColumbia, MOMay 27, 2010
0
20
40
60
80
100
120
140
160
0
1
2
3
4
5
6
7
8
Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10Do
llars
per
bar
rel
Dolla
rs p
er b
ushe
l
Corn Petroleum
Corn price is nearby futures price. Petroleum price is for West Texas Intermediate. Sources: USDA’s Agricultural Marketing Service and Energy Information Adm.
Overview of major biofuel policies influencing biofuels
FAPRI biofuel outlook
Effect of expiration of credits and tariffs on the biofuel market
Renewable Identification Numbers (RINs) are used to ensure compliance with the RFS. Obligated parties get required RINs by using biofuels or by buying RINs from others who have used biofuels in excess of their obligations.
Biodiesel blenders credit of $1.00 per gallon Expired December 31, 2009
Ethanol blenders credit $of 0.45 per gallon Expires December 31, 2010
Ethanol import tariff of $0.54 per gallon* Expires December 31, 2010
Cellulosic ethanol producers/blenders credit $1.01 per gallon Expires December 31, 2010
*Specific quantities of ethanol from CBI countries are exempt, an additional 2.5% specific tariff is applied to all imports
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
0.000.501.001.502.002.503.003.504.00
Jul 05
Jan 06
Jul 06
Jan 07
Jul 07
Jan 08
Jul 08
Jan 09
Jul 09
Jan 10
Jul 10
Dol
lars
per
gal
lon
Unleaded Gasoline Ethanol
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
Biodiesel blenders credit of $1.00 per gallon Expired December 31, 2009
Ethanol blenders credit $of 0.45 per gallon Expires December 31, 2010
Ethanol import tariff of $0.54 per gallon* Expires December 31, 2010
Cellulosic ethanol producers/blenders credit $1.01 per gallon Expires December 31, 2010
*Specific quantities of ethanol from CBI countries are exempt, an additional 2.5% specific tariff is applied to all imports
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
Interactions of larger cap and trade legislation with the Renewable Fuel Standard (RFS2)
New energy bill, farm bill or conservation bill
Mandate waiversCalifornia and NE-States establishing
their own renewable fuel programs
Multiple biofuel policies overlap and may have varying effects on biofuel and commodity markets depending on context
The blend-wall may be ‘taller’ than we assume
Second-generation biofuel growth is uncertain
More detail in the US Biofuel Baseline Briefing Book www.fapri.missouri.edu
T A
C
S
B
O
Mandates
T = overall mandateA = advanced mandateB = bio-based diesel mandateS = cellulosic mandate
C = conventional ethanol gapO = other advanced gap
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
Source: 2010 FAPRI Missouri stochastic baseline
