Indirect land use calculations giving ethanol, biodiesel producers heartburn

Southeast Farm Press
Jun 8, 2009 9:45 AM, By Forrest LawsFarm Press Editorial Staff

Collin Peterson remembers the first ethanol boom in the 1970s. The Arab oil embargo and resulting long lines and high prices at the gas pumps prompted a number of entrepreneurs to jump into corn-based renewable fuels.

But when unexpected energy conservation measures by the U.S. public reduced the demand for oil, gasoline and ethanol prices plummeted and the plants were shuttered. Peterson has said ethanol producers in his state of Minnesota never recovered.

So you might understand why Peterson was visibly angry when EPA released its proposed rule for implementing the Renewable Fuels Standard earlier this month. The proposal includes calculations of greenhouse gas emissions for all fuels covered by the standard.

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