Minnesota Farmers Union

From Growth Energy

Since the publication of a controversial study last year (Searchinger et al 2008), a new term has entered the policy debate around biofuels - indirect land use change (ILUC).  The debate is focused on whether or not the carbon intensity of fuels like ethanol can or should include a penalty for theoretical indirect, economic effects.  Land use is just one of many indirect effects that could also increase the greenhouse gas emissions of different fuels, including gasoline.

In December 2008, the European Union decided not to include an ILUC penalty against biofuels.  More recently, in April 2009, the California Air Resources Board (ARB) voted for regulations that would add an "indirect land use change" penalty to biofuels as part of its Low Carbon Fuel Standard.  ARB also agreed to investigate the indirect effects of other fuel types.  In addition, the U.S. Environmental Protection Agency (EPA) is expected to release a proposed rule that could include an indirect land use change penalty for biofuels in determining that fuel's capacity to reduce greenhouse gas emissions compared to gasoline.

What Is ILUC Theory?