teaching note: the us ethanol industry with comments ... - AgManager

TABLE OF CONTENTS
TABLE OF CONTENTS .....................................................................................................................................................1
EXECUTIVE SUMMARY .................................................................................................................................................2
INTRODUCTION.................................................................................................................................................................3
POLICY ENVIRONMENT................................................................................................................................................5
UNITED STATES.................................................................................................................................................................... 5
Background......................................................................................................................................................................5
Clean Air Act Amendments of 1990.............................................................................................................................6
Ethanol Incentive Programs .........................................................................................................................................7
Ongoing Policy Issues..................................................................................................................................................11
Farm Policy Considerations.......................................................................................................................................13
U. S. ETHANOL PRODUCTION...................................................................................................................................14
Background....................................................................................................................................................................14
Current Industry Structure..........................................................................................................................................14
Future Capacity............................................................................................................................................................19
LIST OF TABLES
TABLE 1: ETHANOL INCENTIVES BY STATE....................................................................................................................... 11
TABLE 2: OPERATIONAL ETHANOL FACILITIES................................................................................................................ 18
TABLE 3: ETHANOL PLANTS UNDER CONSTRUCTION...................................................................................................... 22
TABLE 4: PLANNED GROWTH OF INDUSTRY PRODUCTION CAPACITY.......................................................................... 23
TABLE 5: ANTICIPATED INCREASE IN ETHANOL PROCESSING CAPACITY IN THE GREAT PLAINS, MILLION
GALLONS PER YEAR (MMGY)........................................................................................................................................ 23
LIST OF FIGURES
FIGURE 1: FUEL ETHANOL PRODUCTION IN THE UNITED STATES.................................................................................... 3
FIGURE 2: ETHANOL PLANTS BY CAPACITY, NOVEMBER 2001...................................................................................... 15
FIGURE 3: RELATIONSHIP OF ETHANOL PROCESSING FACILITIES TO MAJOR CORN PRODUCING REGIONS............ 16
FIGURE 4: GREAT PLAINS REGION OPERATIONAL ETHANOL FACILITIES.........ERROR! BOOKMARK NOT DEFINED.
FIGURE 5: ANTICIPATED NEW CONSTRUCTION: ETHANOL PLANTS BY CAPACITY..................................................... 20
FIGURE 6: GREAT PLAINS REGION: CURRENT AND ANTICIPATED ETHANOL PRODUCTION AND DENSITY OF CORN
PRODUCTION .................................................................................................................................................................. 21