Michael R. Penee 

Goverrzor 

STATE OF INDIANA 

OFFICE OF THE GOVERNOR 

State House, Second Floor 

^•• -... . •^^''	lndianapolis, Indiana 46204 tds

January 21, 2014 

Administrator Regina A. McCarthy 

Environmental Protection Agency 

1200 Pennsylvania Ave., NW 

Room 3000 

Washington, DC 20460 

Email: Mccarthy.gina@epa.gov

Dear Administrator McCarthy: 

As Governor of the State of Indiana, I am concerned about the U.S. Environmental 

Protection Agency's (EPA) proposed rule announcement that would significantly 

reduce the volumes of coin-based ethanol and biodiesel produced in the U. S., 

specifically in Indiana. 

This announcement, if implemented, will hinder Indiana's development efforts to 

sustain and grow jobs in rural communities across the state. The growth of our state's 

ethanol and biodiesel industry in the last nine years has reinvigorated 13 comniunities, 

directly and indirectly, arld created more thari 3,000 jobs. 

The proposed reduction iri ethanol volume is almost eguivalent to the total ethanol 

production by Indiana's 13 plants. The potential damage to soy-based biofuels is even 

more signiEcant and threatens the nation's largest biodiesel plant, which is located 

here in Indiana. Hoosier farmers report that this proposed cliange comes after they 

have harvested their 2013 crop and made plans for deliveiy to our ethanol and soy 

biodiesel plants. This leaves them trying to figure out how to adjust to this 

unantieipated rnarlcet reduction. 

Because ethanol represents the second largest market for Indiana corn farmers, the 

EPA's proposal represents a severe shift in rural economic policy in our state. It has 

already had a chilling effect on those companies who are pursuing second generation 

biofuels fiorn biomass, and if implemented, it would halt investment in additional 

infrastructure that would lead to more jobs in America's heartland. In addition, corn 

prices have been dropping steadily in recent months and are now approaching the 

fai•mers' cost of production, which is further evidence that now is a bad time to 

abruptly alter the marlcet for corn. 

.My concerns about the EPA's proposal are sincere and heartfelt, and so is my interest 

in working with you on a sensible resolution. We share the goal of offei •ing consumers 

more fuel choices, and renewable fuels are on the cusp of solidifying their role in
achieving that goal. Blender pump installations are increasing, as is the number of 

flex-fuel vehicles available to consumer. Just as we have seen in many other industries, 

the biofitels industry continues its steady advancements with new technologies that 

malce such production ever more efficient and valuable to many markets and 

customers. I encourage the ethanol industry to continue making technological strides 

in process, development, and use, and I ask that the EPA work together with industriy 

leaders on a solution that advances both parties' long-term objectives. The long teim 

future is bright for these fuels and the technology behind them, and I believe we can 

worlc together to make that future a reality. 

Adininistrator McCarthy, I m•ge the EPA to halt this proposed action and work with us 

and other interested stakeholders in rural America to find ways to continue growing 

America's biofuels industry and increasing our nation's energy security. 

Sincerely,

J'..., L .,L.^._..

Michael 4RPenee 

Govemor of Indiana 

ce:	Tom Vilsack, Secretaty, United States Department of Agriculture

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