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New EPA Regulations Good News For Indiana Farmers

By Nick Janzen

Posted May 19, 2016

On Wednesday the Environmental Protection Agency proposed to increase the amount of biofuel in gasoline. The move means more ethanol produced in the state will find it's way into people's cars.

The increase is good news for Indiana's farmers.

"Indiana's a leading state in ethanol production and it has been very important for our farmers' bottom line and business," says Kyle Cline, national policy advisor at the Indiana Farm Beureau.

Congress created the Renewable Fuel Standards Program in 2007. It requires gasoline to contain a minimum amount of renewable fuels, like ethanol. Congress originally set a target of 15 billion gallons of biofuel for next year.

But the EPA got a waiver for a lesser standard, because of the recession and the price of ethanol imports.

"We're still not happy with the EPA getting close to that target again, but not quite hitting it," Cline says.

With this increase, the target would rise to 14.8 billion gallons, or 99-percent of the original 2017 target.

But the ethanol industry has it's opponents. Oil companies, which compete with biofuels, and certain environmentalists advocate for lowering the ethanol mandate.

"We're using a lot of our land acreage here in the united states to produce corn and in recent years we've also plowed up millions of acres of grasslands and wetlands to meet increasing demands for corn," said Emily Cassidy, research analyst for Environmental Working Group last summer. "It increases carbon emissions because when you plow up soil and grasslands you're increasing carbon emissions."

Others say the future of biofuels lies in cellulosic-based ethanol–often called second-generation biofuel–that's created from crop waste products like cornhusks and is more environmentally friendly.

Peter Schubert, who directs the Richard Lugar Center for Renewable Energy headquartered at IUPUI, says the EPA mandate keeps corn prices up, which is good for local farmers, but, he suggests, that needs to be balanced with research for second generation biofuels.

The EPA will open a public comment period on the proposal July 11.

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