Hoosier Ethanol Producers Waiting For EPA Decision

By Lacy Scarmana

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.

Secretary and Treasurer of the Indiana Ethanol Producers Association Dave Hudak 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 said.

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.

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