Betting on the come, feds say corn ethanol can be produced with a smaller carbon footprint, so is OK

The Obama administration yesterday unveiled a broad new vision of biofuels development to meet the mandate for 36 billion gallons of biofuels by 2022. Chief among the new strategies is a change of opinion from the Environmental Protection Agency that the corn-based ethanol and soy-diesel industries can have a carbon footprint small enough to be part of the plan, Jessica Leber of Environment and Energy Daily reports. Most of the current 12-billion-gallon biofuel supply comes from corn ethanol, but Leber writes, "much of the remaining mandate will be met by cellulosic fuels that have a smaller carbon footprint and aren't made with food or feed grains."

Biofuel companies were relieved by the long-delayed regulations, which provide some stability for the industry. "Still, the controversial regulation drew simultaneous praise and criticism from special interests on all sides of the issue, from the biofuels industry itself and from environmental groups," Leber writes.

Some environmentalists questioned EPA's decision to include corn ethanol because it relied on improvements in the industry to mitigate water, land and carbon impacts that are not yet in place. EPA Administrator Lisa Jackson defended the decision, saying it came after EPA "revised models to incorporate updated crop yield estimates and the use of animal feed co-products" to calculate the carbon footprint, Leber writes.

EPA also included "120 additional countries in their estimates of the international carbon emissions spurred by an expanded domestic ethanol market," Leber reports. Environmentalists want the footprint calculation to include estimates of indirect emissions, caused when farmers abroad clear forests to plant grain, but some in Congress say they will keep fighting the idea. "To think that we can credibly measure the impact of international indirect land use is completely unrealistic, and I will continue to push for legislation that prevents unreliable methods and unfair standards from burdening the biofuels industry," said House Agriculture Chairman Collin Peterson, D-Minn., who this week introduced a bill to that effect. (Read more)

Ken Anderson of Brownfield Network, citing the Nebraska Corn Board, says "EPA estimated that corn-based ethanol reduces greenhouse gases 21 percent over gasoline. Without that penalty, corn ethanol would achieve a 52 percent reduction rating." The board applauded EPA's higher rating for distillers' grains, the leftover feedstock that is fed to animals. (Read more)