Farm News
05-05-06
Leaders stress new policies needed to combat high oil
By KRISTIN GREINER- Farm News staff
AMES — Some people believe that it’s time for the government to pass a
national energy policy and help with rising gas prices.
Mark Hanna, Iowa State University Extension agricultural and biosystems
engineer, said at times like now, a well written national energy policy would be
beneficial.
“I think a renewable fuel plan is a great idea,” Hanna said. “As a society, we
need to be doing something. They say energy prices may be down this fall or a
year from now, but now is the time to get a national energy policy set and work
our way toward more renewable fuels. This same situation could very easily
come up again when you least expect it.”
Iowa Congressman Jim Nussle last week introduced legislation designed to
lower gas prices, help consumers and boost the state’s and nation’s economy.
The ‘‘Independence from Oil With Agriculture (IOWA) Act’’ calls for reforms to
nationally expand production of clean and efficient renewable fuels, such as
ethanol and biodiesel, by 60 percent within six years.
Nussle’s press secretary Robert Zirkelbach said the entire House delegation from
Iowa has signed on and the bill has support of neighboring agriculture states.
“It looks like the House will be passing it and moving forward on energy
legislation. Hopefully, this will be a part of it,Ӕ Zirkelbach said.
Iowa Congressman Steve King is a co-sponsor of Nussle’s bill. He said now is
the time to act to curb prices at the pumps and use Iowa grown crops at the
same time.
“If we take advantage of what we’ve been producing here in Iowa for years, we
have a chance to increase the size of our domestic energy supply pie which will
reduce our dependence on foreign, unstable oil. It’s something that should have
been used a long time ago,Ӕ King said in a statement.
Key provisions in the Independence from Oil With Agriculture (IOWA) Act
include:
Increases the Renewable Fuels Standard (RFS) from 7.5 billion gallons to 12
billion gallons by 2012—nearly a 60 percent increase.
Expands the availability of E85 by providing a permanent tax credit for the
installation of E85 tanks.
Permanently extends the small producer ethanol tax credit.
Permanently extends the biodiesel production tax credit.
Permanently extends the renewable energy income tax credit for utility providers
that use electricity generated from renewable sources such as wind, ethanol,
biodiesel and biomass.
‘‘After listening to Iowa corn and bean farmers, I am convinced the 7.5 billion
gallon renewable fuel standard should be the floor, not the ceiling, on what
federal energy policy should look like if America is truly committed to becoming
more energy independent. Our country’s energy development and a cleaner,
healthier environment can and must co-exist as part of a comprehensive, wellbalanced, long-term solution that reduces American dependence on foreign oil.
I’ve said it before and I’ll say it again: the clean and responsible answer for our
environment and economy is Iowa’s homegrown resources,” Nussle said in a
statement.
Last week, Iowa Sen. Charles Grassley commended President George W. Bush
to grant waivers to reduce regulatory obstacles and increase gasoline supplies if
requested by state officials. Grassley wrote to the president, urging him to
“closely review and take any action available that will extend the supply of fuels
to the market.”
After sending the letter, Grassley told reporters that during town meetings held
recently in Iowa, he heard from Iowans about the “ill-effects” high gas prices are
having on their wallets.
“Farmers, consumers and business people all had great concern about being
able to get across the field or get their business accomplished because of the
gas prices,” Grassley said. “Americans are getting hit hard by the high prices of
gas and the president made a strong commitment by calling on the EPA to
provide flexibility in the gasoline market to increase supplies. We need to do
everything we can to ensure that the economy continues to move full-steam
ahead, and high gas prices don’t help.”
But Iowa Sen. Tom Harkin testified before the Senate agriculture, nutrition and
forestry committee last week that the country “desperately needs” biofuelsî and
defended ethanol against President Bush.
“The President suggested... to ethanol producers and supporters that they are
part of the problem. He seems to have fallen for the propaganda that somehow
ethanol was partly responsible for the run-up in gasoline prices. He says this
when the price of crude is $73 a barrel and counting. The fact is ethanol is
helping to moderate gas prices by affording the nation increased fuel supplies,”
Harkin testified. “The biomass provisions that Sen. Lugar and I put into the
recently passed energy bill are a big step forward as well. They will help
guarantee we get more ethanol out of a kernel of corn than we get today, and
increase the number and variety of feedstocks we can use to produce ethanol.”