A draft rule that the U.S. Environmental Protection Agency unveiled Tuesday about how emissions should be measured has the corn ethanol industry in an uproar, while newer next-generation biofuel startups seem to be more welcoming of the move. The rule calls for the inclusion of emissions from “indirect land use change,” which could include the impact of farmers cutting down trees or switching crops to grow corn for ethanol. The additional emissions would be calculated into a total emissions calculation that would determine whether specific biofuels count toward the renewable fuels standard.

The draft rule was announced the day before a show of support from the Obama administration for both corn and cellulosic ethanol. The administration held a call this morning with reporters to discuss not just the EPA rule but also $786.5 million in stimulus funds that will be allocated for biofuel research and commercialization and a task group called the Biofuels Interagency Working Group that will work on development programs and policies.

The EPA rule is the most controversial of the three. While many biofuel advocates favor an emissions standard, EPA Administrator Lisa Jackson on Tuesday morning cited an estimate that biofuels only reduce emissions by about 16 percent compared with fossil fuels. Other studies put the number closer to 60 percent, said General Wesley Clark — an enthusiastic ethanol proponent and chairman of ethanol trade group Growth Energy — and Growth Energy CEO Tom Buis, during a conference call today. Growth Energy’s board of directors includes corn-ethanol companies POET, Western Plains Energy, Amaizing Energy, Hawkeye Renewables, and Green Plains Renewable Energy.

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In the economic downturn, “green jobs” has become one of the hottest political catchphrases. President Barack Obama has promised 5 million new green jobs as part of his energy and stimulus plans. Here in California, the mayors of Los Angeles and San Francisco, as well as the governor have made green jobs a priority. And states across the country, from Indiana to Washington, are considering bills to develop more green jobs.

This week as the sold-out Good Jobs, Green Jobs National Conference kicks off, and Congress sits down to vote on a new, pared-down stimulus package that includes billions for jobs in energy efficiency and clean power, “green jobs” are at the forefront of everyone’s minds. But the cleantech industry hasn’t proved to be recession-proof, and layoffs and hiring freezes are leading would-be green employees to question just how soon the jobs will arrive, and what kind of cleantech companies will be hiring. Here’s what we see:

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As part of his Economic Recovery Plan that he hopes will create 2.5 million new jobs, President-elect Barack Obama is calling for an effort to make public buildings more energy-efficient. In his weekly radio address, Obama announced a plan to seek energy-efficient upgrades for federal and public school buildings (see video below).

Obama provided few details on how the green building makeover would work — or how many jobs it could provide — but he said he would start by replacing old heating systems and installing energy-efficient lighting. “Our government now pays the highest energy bill in the world. We need to change that,” he stated. He said he would unveil more about the plan in the coming weeks and push to have congress start working to get the plan approved in January.

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“If we are lucky, we will come out with a bill next week that nobody likes.”

With those words, Rep. Barney Frank (D-Mass.), chair of the House Financial Services Committee, wrapped up two days of testimony from auto executives intended to be something like a truth commission for the incompetent but ending up more like sado-masochism in bespoke suits. It leaves one wondering what happens if we aren’t lucky — and generally not looking forward to this week.

It also raises a question. What kind of solution would everyone like?

Enter Chad Holliday, CEO not of a Detroit automaker, but of Delaware’s DuPont. It shows just how far the U.S. auto industry has fallen when it’s getting schooled by a guy who makes freon and spandex. DuPont gets a fifth of its revenue from its automotive division, so Holliday urged executives at a luncheon in Detroit’s storied Book Cadillac Hotel to consider a “Detroit Project” — a new Manhattan Project with all the innovations and none of the bombs.

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