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Iowa State Economist Issues Biofuels Warning

Robert Wisner says contradictory mandates could be big trouble for the industry.
Compiled by staff 
Published: Jun 18, 2009

Biofuels policy is in turmoil over directions pushed by the Obama administration, regulators and the industry, and Iowa State University Biofuels Economist Robert Wisner warns the contradictory mandates could slow or halt growth. He says that both the U.S. Environmental Protection Agency and the California Air Resources Board are moving too fast in relying on unproven "indirect land use emission impacts."

Wisner writes, in a new report, that instead of downgrading the environmental benefits of U.S. corn-based ethanol based on possible conversion of pasture and forests to cropland in other countries, "much more research is needed on these issues to accurately measure indirect land use impacts."

EPA and CARB approaches for reducing greenhouse gas emissions could make both soy-based biodiesel and corn-based ethanol uncompetitive. That could have investors pulling back from building new capacity for either fuel, and undermine the ability for the industry to meet federal Energy Independence and Security Acdt requirements for rising biofuel use.

Wisner says EPA's indirect land-use calculations ignore the fact that ag is constantly changing, noting that "direct emissions from biofuels refieries are being reduced over time through technology advances." Add in longer term tech changes that bring increased crop yields per acre, changes in livestock and poultry feed conversion efficiency that cut feed needs per animal and the impact of biofuels changes.

The economist worries over CARB's rules that could present the biggest threat the biofuels since California is the largest potential parket in the U.S. for renewable fuels, and 13 other states are considering adoption of the standard.

Check out Wisner's complete biofuels article with more data HERE.



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Tagged: biofuels, ethanol, EPA, Environmental Protection Agency, biodiesel

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