(Reuters) - President Joe Biden's administration is poised to announce an adjustment to its scientific modeling for ethanol that will show the corn-based fuel to be less effective at reducing greenhouse gas emissions than previously estimated, three sources briefed on the plans told Reuters.
The adjustment, previously unreported, will make it more difficult for ethanol producers to take part in lucrative new U.S. tax credits for so-called sustainable aviation fuel, seen as crucial to the industry’s growth, the sources said. It will still leave them a pathway to the subsidies if they can partner with corn growers that use sustainable farming practices.
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