Recommending a Biofueled Future

Recommending a Biofueled Future. I’m Greg Martin with today’s Line On Agriculture.
The government accountability office – or GAO - recently released a report on biofuels that looked at what will happen as that industry grows under the 2007 energy bill.  The report made recommendations to Congress and the Obama Administration to broaden environmental regulations on future biofuels production and questioned the need for ethanol tax incentives.

JONES: We definitely have concerns about what they’re saying.  We’re concerned about the GAO suggesting that EPA be the lead agency on determining impacts of biofuels.  We’re also concerned about their suggestion that congress consider changing or eliminating the ethanol tax credit.  That’s something that we’ve supported and think is important as the industry grows. 

American Farm Bureau Energy Specialist Elizabeth Jones says the report only offers recommendations.  As the evaluation and investigation arm of Congress, the GAO has no power to change anything.  But that doesn’t mean it won’t have an impact.

JONES: Congress may or may not take these recommendations under advisement.  They worked very hard to get the energy bill passed in 2007.  I think the greatest challenge will come from a regulatory standpoint, with EPA trying to adopt these recommendations and that’s something that we should all be concerned about.   

Jones says harsh new regulation could put the squeeze on a relatively young industry that is rapidly developing new technology and gaining in efficiency to lessen our dependence on foreign oil.  But biofuels have had an important ally.

JONES: President Obama was very supportive of biofuels during his campaign and has set up an interagency working group on biofuels. We hope folks in the white house will work with us to alleviate these concerns that we have, so that farmers and ranchers can feel confident raising biomass crops and so that the biofuels industry can move forward with new technologies and new plants.

She talks about a couple of the GAO report recommendations.

JONES: This could have an impact.  They recommend that Congress look at changes to the energy independence and security act that was passed in 2007.  Some of the changes they look at would address tax credits for biofuels production and that the EPA administrator, in consultation with the secretaries of agriculture and energy, propose changes looking at the impacts of biofuels on the environment. 

That’s today’s Line On Agriculture. I’m Greg Martin on the Northwest Ag Information Network.