By Andi Anderson
The Indiana Senate has passed a bill offering tax credits to gas stations and fuel producers using higher ethanol blends. Senate Bill 254 aims to boost ethanol demand, benefiting Indiana farmers and rural economies.
Indiana is a leading ethanol producer, with over 40% of the state’s corn crop used for biofuel. Chris Cherry, president of the Indiana Corn Growers Association, supports the bill, stating it will increase corn demand and provide additional income for farmers.
Cherry also emphasized the importance of domestic markets, particularly in response to retaliatory tariffs from Canada. Supporters argue that expanding ethanol use will strengthen Indiana’s agricultural economy.
However, the Hoosier Environmental Council opposes the bill. President Sam Carpenter acknowledges ethanol reduces emissions compared to traditional gasoline but points out that its production releases carbon dioxide. Converting land for ethanol production and using fertilizers also contribute to environmental concerns.
Carpenter argues that Indiana should focus on electric vehicles, as EV technology has advanced and offers zero tailpipe emissions. Several EV battery manufacturing plants are expected to launch in Indiana, driven by federal funding through the Inflation Reduction Act.
The bill, now moving to the House for consideration, has sparked debate over balancing biofuel incentives with investments in clean energy alternatives like EVs.
Photo Credit: shutterstock-dickgage
Categories: Indiana, Energy