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The Indy Racing League is taking a lot of flack for signing a contract with APEX-Brasil — a trade promotion agency that will be the official ethanol supplier to the series beginning in 2009.

Last week, IRL officials met with the Iowa Corn Growers Association, Indiana Corn Marketing Council and National Corn Growers Association to discuss the arrangement. After the meeting, the IRL issued a statement explaining the deal, noting that the Brazilian Sugarcane Industry Association UNICA “will look to partner with a U.S. company to supply the IndyCar Series with American-produced corn-based ethanol.”

Terry Angstadt, president of the commercial division of the Indy Racing League, provided more explanation. “For the last three years, ethanol has been the official fuel as a result of a sponsorship agreement with the ethanol producers and EPIC, the Ethanol Promotion and Information Council,” he said. “The ethanol producers recently notified the IndyCar Series that it would not be renewing the agreement for 2009 and beyond and EPIC is ceasing operation. No one from any other part of the American-based ethanol community stepped forward with a substantial proposal.”

Now this requires a bit of explanation. First, regarding EPIC “ceasing operation.” The organization is becoming part of the new Growth Energy group announced earlier this month. Growth Energy was started by the same major players who started EPIC almost four years ago – POET, ICM and Fagan – and now they are going in a different direction with the organization.

Also, reports are that several American ethanol producers did come forward to offer their services as a supplier during last week’s meetings but IRL officials are concerned that independent American suppliers would have difficulty matching the resources of APEX-Brasil for promotion and marketing. Still, at least for 2009, the Indy Car Series will be fueled with American ethanol through the Brazilian partnership.