Optimistic Renewable Future

Optimistic Renewable Future. I'm Greg Martin with today's Line On Agriculture. It is a critical time for the Ethanol industry as the tax incentive is still pending after its expiration at year's end. Bob Dineen, the President of The Renewable Fuels Association, gets us up to speed on the current situation. DINEEN: We've had legislation introduced in both the House and the Senate. I was heartened by the fact that there's strong bi-partisan support and bicameral support for extending the tax incentive and he President has expressed his support for it as well. You would think then, ok, this should be a no-brainer, we'll get this done and I think that we will but the Congress is still pretty dysfunctional and this town is as polarized as I've ever seen it in the 30 years that I've worked here. Dineen says he's cautiously optimistic, especially after seeing the Biodiesel Tax expire at the end of 2009, but optimistic nevertheless. DINEEN: I think we're going to succeed because we know that we might not. We're going to succeed because we saw what happened to the biodiesel industry and we're determined to not let that happen to us. You know we're building the coalition, we are doing the analysis necessary to arm our supporters with the facts and you know we're doing all the things that you need to do to activate rural America but also to educate the folks on the coast of how important this is. Ethanol is now blended in virtually every gallon of gasoline sold across the country. It's having a tremendous impact on our economy. Last year we were responsible for some 400-thousand jobs. We added $53-billion dollars to gross domestic product. All positive outcomes of Ethanol - but what if it doesn't pass? Dineen describes where that would put the Ethanol industry. DINEEN: We're in a little bit different situation that biodiesel was because there is a renewable fuels standard that will require refiners to blend at some level. It doesn't dictate that it all be domestic ethanol so you'll see imports increase dramatically and you will see a significant shut down in this industry. It won't be all the industry. Our analysis suggests however, it could be as much as 38% of the industry will shut down at least temporarily and we could love 112-thousand jobs so the impact across rural America would be devastating. RFA has expressed those consequences to Congress and Dineen believes they will get their act together and get it done. That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.