Ethanol and Biodiesel Development Perspectives in the Bush Administration

Bush Administration's Record Raises Serious Questions About Its Commitments

Chooses Special Interests over Renewable Fuels Standard
There is overwhelming support in Congress for the renewable fuels standard (RFS), which would double the use of ethanol over the next ten years. Analysts estimate that the RFS would increase corn prices by as much as 50 cents per bushel, create 214,000 new jobs, and reduce our dependence on Middle Eastern oil supplies by reducing the amount of oil we import by at least $4 billion each year.

Unfortunately, the RFS has been blocked by the House Republican leadership who have insisted on special interest protections for ground water polluters. And, as a result, this important bipartisan ethanol legislation has been stalled in Congress for over seven months.

Fails to Support Value Added Biobased Products

Adding value to agricultural production is a key way to create jobs in rural America and to improve farm income. The 2002 Farm Bill required that the government give a preference for the purchase of biobased products. Unfortunately, the Administration has cut the value added agriculture product development grants program that helps farmer-owned businesses and cooperatives develop new products. And President Bush's budget for Fiscal Year 2005 proposes to cut $50 million from a program that provides funds for expanding production in ethanol and biodiesel plants.

Note: Hopefully the Bush Adminstration has or will support legislation that places more resources in the hands of entities that can make biodiesel and ethanol into mainstream fuels.