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California’s fuel regulations will hurt Nebraska

California’s low carbon fuels standard, which received final approval by the state’s Office of Administrative Law last week, will have a major negative impact on Nebraska corn ethanol.

The new rules will essentially end the use of corn-based ethanol in California.  The Nebraska Corn Board’s director of research, Kelly Brunkhorst, estimates that 27 percent of Nebraska’s ethanol goes directly to California’s fuel market.

“The whole low carbon fuels standard out in California could potentially shut out a billion dollars worth of Nebraska’s ethanol going into California, let alone other states’ ethanol that is going into that market,” says Brunkhorst. “So it’s going to continue to be a big hindrance on the continued growth of our ethanol industry—and with California being the largest fuel market in the U.S., it continues to be a big concern for us.”

California’s Air Resources Board is currently facing a lawsuit over the low carbon fuels standard.  That lawsuit, led by Growth Energy and the Renewable Fuels Association, charges that the standards are unconstitutional and erect new regulatory obstacles for ethanol.

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