By DOUG SCHMITZ
Iowa Correspondent

WASHINGTON, D.C. — Whether Democrats or Republicans control one or both houses of Congress, ethanol policy remains a bipartisan issue since it has always had strong support from both political parties, said the head of the Renewable Fuels Assoc. (RFA).

“Lawmakers of all stripes support America’s push for domestic renewable energy,” said Bob Dinneen, RFA president and CEO, in a Nov. 3 teleconference with reporters the day after last week’s midterm elections. “Over the past three decades, the RFA has worked with the industry and Congress to implement thoughtful policy that has moved America’s domestic renewable fuels industry forward.”

Under a Democratic Congress and Republican administration, Dinneen said, the RFA helped to pass important amendments to the Clean Air Act in 1990 that “meaningfully opened the market for ethanol.

“In 2005, with federal government under Republican control, we helped pass the first Renewable Fuels Standard requiring the use of renewable fuels,” he said. “In 2007, with a Republican in the White House and Democrats in control of Congress, we expanded the RFS fivefold.”

In fact, Dinneen said time and again, the RFA has worked with both parties to secure responsible tax policies to ensure ethanol and other renewable fuels could compete with the oil industry.
“That’s because energy security, rural economic development and fuel choice are not partisan issues; they are priorities for all Americans,” he said. “None of that changed (election) night.”

While some of the GOP’s strongest ethanol advocates garnered big wins (U.S. Sens. Chuck Grassley of Iowa and Mark Kirk of Illinois, and Rep. John Shimkus of Illinois) last week, two leading Democrat supporters of the corn-based renewable fuel lost their seats (Reps. Earl Pomeroy of North Dakota and Stephanie Herseth Sandlin of South Dakota).

Dinneen said one major conclusion from last week’s midterms is the industrial Midwest and rural America – where ethanol plants are located – are among the most frustrated with the federal government.

“The sea of red between the coasts should send an unmistakable signal to policymakers that rural America has felt under siege and abandoned,” he said. “Their voice was heard last night. They will be listening now for Washington to address their concerns. That will most certainly have an impact on farm and fuel policies that will be debated in the weeks and months ahead.”

While Democrats are still reeling from last week, Dinneen said the bottom line is really about the economy and jobs. He said allowing the ethanol tax incentive to expire on Dec. 31 would risk jobs in “a very important domestic energy sector across rural America,” which would “halt and reverse investments in clean energy technology. That will have impacts for the 112th Congress,” he said. “It will likely have an impact on the lame duck (session). It will most certainly have an impact on future ethanol policy.”

Beyond the legislative agenda, Dinneen said, much of the lame duck session will primarily be focused on organizing the 112th. “The presumptive new Speaker (of the House), John Boehner of Ohio, has been a strong voice for farmers and a proponent of ethanol over his career,” he said. “We look forward to working with the new House leadership team.

“If we keep the focus on jobs; if we make the connection between increased ethanol use and reduced energy imports and a growing economy; if we demonstrate how ethanol production and use saves taxpayer dollars by increasing tax revenues and reducing farm program costs; then, the 112th Congress and the American public will continue to support our industry and policies to assure its continued growth and evolution,” he added.

Working together, Dinneen said, the entire biofuel industry can educate new and veteran lawmakers on the importance of domestic renewable fuel production and help ensure sound public policies, open markets and allow biofuel to compete against what he called entrenched fossil fuels that currently dominate the energy, economic and environmental landscape.

“It is clear there will be a renewed focus on reining in spending and reducing taxes,” he said. “There will have to be a robust debate about how best to assure the continued growth and evolution of the ethanol industry, how to effectively attract capital to cellulosic ethanol technologies (and) how to commercialize other advanced biofuels like algae and butanol. “These are exciting times and we are eager to get to work.”