BFJ.com Podcast with John Urbanchuk, ENTRIX Technical Director, On the Impact of NOT Renewing Ethanol Blender's Credit
Date Posted: April 6, 2010
Urbanchuk was hired by the Renewable Fuels Association to do a study on the impact of not renewing the ethanol blender's credit, otherwise known as the Volumetric Ethanol Excise Tax Credit (VEETC).
Highlights From the Podcast
• The Blender's credit has been in place since 1978 to help ethanol be competitive with petroleum based gasoline to level that playing field and still provides that today.
• The credit of 45 cents/gallon goes to the blender who adds ethanol to gasoline, not the producer of ethanol.
• Removing the blender’s credit will make ethanol uncompetitive with gasoline and hurting the profitability of ethanol production.
• Removing the credit could result in idled or bankrupt ethanol plants, loss of jobs and increased gasoline costs to the consumer. Could be loss of up to 37% of production.
• Removing the credit would result in higher imports of ethanol because Renewable Fuel Standard still requires ethanol be blended in increasingly higher amounts.
John M. Urbanchuk is a Technical Director with ENTRIX, Inc. where he provides a broad range of economic and policy analysis consulting services to organizations involved in production agriculture, biofuels, and the agricultural support industries.
Urbanchuk has extensive experience in agriculture and the biofuels industry.
He provides independent analysis to support due diligence investigations for lenders, prepares economic feasibility studies and business plans, and provides expert testimony for litigation and governmental bodies.
Some of his clients include the U.S. and Canadian Renewable Fuels Associations, the National Biodiesel Board; National Corn Growers Association, American Soybean Association and United Soybean Board; the Iowa Renewable Fuels Association; and private firms.
Prior to joining ENTRIX, Mr. Urbanchuk was a director with LECG LLC, executive vice president for AUS Consultants, senior vice president and chief economist for Hill and Knowlton, Inc., vice president with Wharton Econometrics, and manager-economic Research for Campbell Soup Company.
He is an adjunct professor at St. Joseph's University and Delaware Valley College where he teaches managerial economics, industrial policy and emerging markets.
Urbanchuk holds a bachelor’s of science degree in economics from Penn State University, a master’s degree in economics from Temple University, and has completed all course requirements for the Ph.D.
He is a graduate of the U.S. Army Foreign Area Officer Program as a specialist in Eurasia.
For more information, call 302-395-1919.