NCGA Applauds House Democratic Rural Working Group Biofuels Plan (5-12-06)

The National Corn Growers Association (NCGA) is encouraged by provisions in the House Democratic Rural Working Group biofuels plan introduced Thursday. The plan calls for increasing the renewable fuels standard (RFS), providing incentives for flexible fuel vehicles, pumping more money into biofuels research and encourages more farmer-owned investment in biofuels plants.

The plan calls for extending key components of last year’s energy bill. For example, from 2009-2015, the plan would base an RFS on percentage of fuel sold rather than volume, beginning with 6 percent in 2009 and ending with 20 percent in 2015. Also, the plan would extend the 51-cent tax credit for ethanol through 2015; currently, it is good through 2010.

The Democrats’ plan would also increase the Small Biofuel Producer Tax Credit, bumping it up to the first from 15 million gallons to the first 30 million gallons of a small plant’s production.

“Corn growers are happy to see Congress continue its efforts to put our nation’s energy security as a priority,” said Bruce Noel, chairman of NCGA’s Ethanol Committee. “The House Democrats Rural Working Group plan is an ambitious one that would continue to grow our domestic ethanol industry.”

“Rural Americans are being hit particularly hard by high gas prices,” said Rep. Bob Etheridge (D-N.C.), co-chair of the Democratic Rural Working Group.  “However, our farmers and our economy stand to benefit from this crisis if we make a commitment to change the way we get our fuel. The answer to our fuel crisis is growing in our fields. By investing in biofuels, we are not only making energy more affordable, we are also investing in rural America. Every dollar we invest in domestic biofuel production is a dollar that stays in America and creates good-paying jobs. It’s a win-win situation for America.”

For more information on the plan, click here.