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EPA Set To Release Biofuel Standards

By Lacy Scarmana

Posted May 29, 2015

The Environmental Protection Agency is set to release updated standards by Monday on how much ethanol must be blended into gasoline.

Indiana has 14 ethanol plants that generate over $6.1 billion in economic output every year and supports around 25,000 jobs. That economic activity is supported by the Renewable Fuel Standards initiated in 2005 that mandates billions of gallons of ethanol be mixed into gasoline over several years.

Dave Hudak, secretary and treasurer of the Indiana Ethanol Producers Association, says as a result the state has invested $1.5 billion in ethanol production.

"That investment was with the understanding that Congress and the federal government would hold up their end of the bargain and would continue to be committed to growing and expanding the use of ethanol," Hudak says.

Opponents of the ethanol mandate say the EPA should reduce the requirement or get rid of it altogether. They say it costs consumers more money at the pump and does not reduce carbon pollution.

A study by the Environmental Working Group found that the EPA's proposal last year to cut the amount of ethanol that must be blended into gasoline would reduce greenhouse gas emissions.

Oil companies are also opposing the mandate.

Ken Cohen, vice president of public and government affairs for Exxon Mobil, has expressed frustration with the EPA's delay in reporting its standards.

"Here we are in 2015 and refiners like ExxonMobil still don't know whether we complied with the law in 2014," Cohen said in a February blog post.

The EPA has not indicated whether it will increase or reduce the ethanol mandate.

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