Indiana's ethanol producers are warning their industry could face a long-lasting negative effect if the federal government lowers the amount of ethanol blended into the nation's fuel supply. That's what leaders with the Indiana Ethanol Producers Association fear after the E-P-A's announcement of draft oil industry rules spelling out specific renewable fuel volumes that must be blended into the U.S. gasoline supply during 2016. If the EPA cuts the amount of ethanol in the nation's gas supply, it would impact thousands of Indiana farmers whose corn is made into ethanol. Ethanol producers say that could result in “chilling effect” on Indiana's ethanol industry. Indiana produces nearly 1 billion gallons of ethanol each year, ranking fourth in the nation behind Illinois, Iowa and Nebraska.