Environmental Protection Agency last week issued its final rule for implementation of the expanded Renewable Fuel Standard. It sets a long-term goal of producing 36 billion gallons of renewable fuel by 2022. The fuels include ethanol, advanced biofuels and biodiesel.
U.S. Sen. Charles Grassley, R-Iowa, said the EPA has been working on the standard for some time. In a phone interview, he said he was glad the decision was made. At the moment a half a billion gallons are being produced.
By 2015, Grassley said, the goal is to reach 15 billion gallons. He said by that time, the hope is to have cellulosic ethanol being produced. This uses other parts of plants besides corn kernels.
Grassley said one of the reasons some of the renewable fuel producing companies have run into some financial trouble is a tax credit for the industry has sunset. He said he and Sen. Max Baucus, D-Montana, are working in the Senate Finance Committee to extend the tax credit for the industry. He said the credit could have helped companies like Tri-City Energy, the Keokuk biodiesel company that was recently auctioned off after going bankrupt.
Grassley said President Obama had a good concept when it comes to freezing spending. However, he said the freezing comes at a 21 percent increase in spending and more with some stimulus money added in. He said President Bush saw 3 percent spending increases in the same areas that are seeing the high increases under Obama’s budget.
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