By Emily McNiff
Renewable biofuels, such as corn ethanol, biodiesel and sustainable aviation fuel (SAF), are immediate climate change solutions. The Indiana Soybean Alliance’s Membership & Policy Committee (M&P) and the Indiana Corn Growers Association (ICGA) tout more opportunities for renewable biofuels.
Biodiesel and ethanol produced from soybeans and corn grown on farms across Indiana and processed in-state not only lower greenhouse gas emissions, but they also provide Hoosiers economic relief at the pump and increase demand for corn and soybeans grown by Indiana farmers.
An income tax incentive bill for retailers (HB 1315) was introduced in the 2024 session of the Indiana General Assembly to boost investment in modern fuel pumps and tanks and to create a wider range of fuel options for Indiana. The goal is to get this bill through the Indiana General Assembly in 2025.
If this incentive is adopted, it will add more than $223 million in economic activity from biodiesel and grow demand for 51 million more bushels of corn for ethanol production. As M&P and ICGA work toward in-state biofuel legislation in the current session, Indiana corn and soybean farmer leaders are also working toward biofuel priorities on the federal level.
Indiana corn farmers believe the use of higher blends of ethanol will improve engine performance and reduce environmental impacts – all at a lower cost to consumers. Also, the quickest way to increase corn grind is through expansion of ethanol use. There are several federal priorities that ICGA leaders are actively discussing with legislators on Capitol Hill. These include:
- Expanding market access through the Renewable Fuel Standard (RFS)
- Seeking permanent year-round E15 access
- Offering market-based policy rewards through the Low Carbon/Clean Fuel Standard
- Passing the Next Generation Fuels Act
Biofuels are also a key market for soybean oil. Biodiesel and renewable diesel made from soybeans may reduce greenhouse gas (GHG) emissions by 74 percent, and Indiana vehicle fleets using B20 have reduced carbon emissions by more than 11,000 tons since 2021. Indiana produces more than 100 million gallons of biodiesel annually.
While Indiana is a leading biodiesel production state, there is an opportunity for growth in selling at the pump. Indiana soybean farmer leaders support several federal policies that will help keep biofuels competitive in U.S. fuel markets:
- Increasing annual volumes for biomass-based diesel and advanced biofuels in the RFS
- Funding for the Biodiesel Fuel Education Program in annual appropriations legislation
- Adopting the Federal Biodiesel Tax Credit to help grow the biodiesel industry
Additionally, the U.S. Department of the Treasury issued guidance on the Sustainable Aviation Fuel Credit (40B) established by the Inflation Reduction Act (IRA) in mid-December. This progress is positive news for soybean farmers as members have pushed for use of the GREET model to determine eligibility for the SAF Credit. EPA will work with other agencies to develop new GREET methodology during the next couple months for products that incorporate soybean feedstock.
ICGA and M&P are committed to continuing the conversations of farmers’ biofuel priorities, as well as other policy issues affecting Indiana agriculture and rural communities.
Membership dollars and the added numbers of farmers across Indiana empower M&P and ICGA to positively influence policy and regulatory matters impacting the U.S. soybean and corn industry. The policy organizations are farmers’ representatives with lawmakers while farmers are growing crops.
