Nebraska Corn Board welcomes EPA's action on ethanol

The Nebraska Corn Board issued a news release today noting that it appreciates the Environmental Protection Agency’s (EPA) acknowledgment that corn-based ethanol has a positive impact on greenhouse gas emissions when compared to regular gasoline.

The release comes after EPA published its proposed rulemaking for the Energy Independence and Security Act of 2007 (EISA). EISA -- sometimes referred to as RFSII -- outlines the path to reaching 36 billion gallons of renewable fuels by 2022. As part of EISA, future biofuels must reduce greenhouse gas emissions by 20 percent.

EPA noted that corn-based ethanol provides a 61 percent reduction in greenhouse gas emissions when compared to gasoline - so that is a tremendous positive.

However, EISA also requires that EPA include land use changes in its life cycle calculations. (Just like the California ARB did, the results of which did not sit well with many corn producers...click here.)

EPA's calculations, however, note that when such land use changes are included, corn ethanol still reduces greenhouse gas emissions some 16 percent. At least with one formula and the most popular ethanol plant model. That's pretty close to the 20 percent level EPA is looking for for future ethanol production in EISA - and as corn and ethanol production efficiencies increase,

Such indirect land use changes remain fuzzy. EPA includes several "pathways" and two formulas to get various land use change answers. Depending on which one you like, you can push the results into any number of directions.

Importantly, EPA said is asking that indirect land use change calculations be peer-reviewed and that such calculations, as they currently exist, will be open to scrutiny.

Kelly Brunkhorst, ag program manager for the Nebraska Corn Board noted:

This proposal is important on many levels because it helps clarify the environmental benefits of corn ethanol, while at the same time noting that there is room for changes. We are especially encouraged by the idea that EPA acknowledged that land use changes are in question and should be examined more closely. Using questionable science, computer models or best guesses is not good policy.

Also worth noting: Ethanol produced from all currently operating ethanol plants are grandfathered in, meaning they are not subject to the 20 percent reduction requirements of EISA.