EPA APPROVES ETHANOL

New biofuels strategy unveiled
Jerry Hagstrom, February 8, 2010 (Ag Week)

"In what appears to be a boost for the renewable fuels industry and the campaign for green jobs, EPA administrator Lisa Jackson…finalized the rule for the National Renewable Fuel Standard program, saying that the agency has concluded corn-based ethanol is a low-carbon fuel that will reduce greenhouse gas emissions by 21 percent compared with the gasoline it will displace.

"Renewable fuels have to reduce emissions by 20 percent to meet EPA’s standards. Some environmentalists had charged that corn-based ethanol uses more energy than it produces and would cause environmental harm through the shift of land in other countries to food and feed production…"

There is much more than land-use to consider. (click to enlarge)

"…[Jackson said] new research indicated higher levels of productivity and crop yields…[Ethanol will] shift land use in some other countries, but…[EPA] increased the number of countries in the indirect land use analysis from 40 to 160, [and a] new study [showed] that the…[indirect land use impacts] were different and lesser…

"Jackson warned, however, that corn-based ethanol will qualify as an advanced biofuel only if the industry is “smart” and produces ethanol efficiently with the use of natural gas…[S]he said the rule should give investors confidence in both corn-based ethanol and soy-based diesel…"

Consider water. (click to enlarge)

"The rule fulfilled a 2007 Energy Independence and Security Act requirement that EPA produce a plan to bring the level of renewable fuels to 36 billion gallons by 2022…EPA and the Agriculture, Energy and Interior departments [will] cooperate to increase production of biodiesel [and] many other renewable fuels to meet the goal…

"House Agriculture Chairman Collin Peterson said he was pleased by the decisions that ethanol and biodiesel will qualify fuels that reduce greenhouse gases…[but doubts the accuracy of international indirect land use estimates]…The House-passed climate change bill would prevent EPA from using the indirect land use analysis and [some Representatives] have introduced a separate bill to achieve the same objective…Farm group and the renewable fuel industry praised the classifications of corn-based ethanol and soy-based biodiesel, but also were critical about the inclusion of the indirect land use analysis."