Ag Groups React to New EPA Tailpipe Standards

The National Corn Growers Association expressed grave concern and disappointment with the Environmental Protection Agency’s final 2027-2032 tailpipe emissions standards. NCGA says the plan still relies almost exclusively on using electric vehicles, a decision that will have long-lasting impacts on the rural economy because it ignores the benefits of ethanol.

Economists at the University of Nebraska say the resulting large drop in corn demand will lead to a permanent 50 percent decrease in the price of corn. That could cost the top five corn-producing states, including Indiana, well over $100 billion in farmland value.

The Renewable Fuels Association says today’s ruling is not the best way to accomplish the administration’s climate goals.

“Today’s final rule forces automakers to produce more electric battery vehicles based on the premise that they’re ‘zero-emission’ vehicles,” says RFA President and CEO Geoff Cooper. “The regulation would strongly discourage manufacturers from pursuing other technologies like flex fuel vehicles.”

In Congress, Senate Budget Committee Ranking Member Chuck Grassley is increasing his opposition to the Environmental Protection Agency’s tailpipe emissions proposal. He cites a new cost estimate by the Congressional Budget Office.

“The CBO released a ten-year budget and economic outlook projecting a $224 billion increase in the cumulative deficit caused by higher electric vehicle tax credit claims and reduced gas tax revenues,” he says. “CBO noted the EV Rule is the largest factor to contributing to these revisions.”

In a letter to EPA Administrator Michael Regan, Grassley said, “The American taxpayers have not voted for and can’t afford the EPA’s tailpipe standards.”

Grassley also noted the challenges the standards pose for auto dealers and wants the agency to clarify its legal authority for promoting the EV Rule.

He’d also like the EPA to outline its plans to compensate for the hundreds of billions of dollars in lost tax revenue and extra spending.