News Releases for February 2009
February 23, 2009
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Governors' Biofuels Coalition Calls On President Obama To Tap Job Growth Potential In Biofuels Industry
Group Also Discusses Proactive Initiatives to Strengthen Public Support for Biofuels
WASHINGTON, DC—According to the 35 member Governors' Biofuels Coalition (GBC), the nation's biofuels industry is poised to provide immediate job growth, generate economic activity and prepare the nation for the next increase in world oil prices. The coalition is asking President Barack Obama to provide national policy leadership and vision to capitalize on the opportunity that biofuels offer.
Ethanol and biodiesel provided employment for more than 259,000 workers in all sectors of the U.S. economy in 2007. Additionally, the ethanol industry added $47.6 billion to the nation's GDP and generated $1.2 billion for the federal treasury, while reducing farm program payments by $6 billion last year. The average 100 million gallon ethanol plant provides $367 million to the local economy, creates 50 direct and 1300 related jobs. "Biofuels is truly a homegrown industry that has proven to transform communities, broaden the tax base and provide solid job growth," said Governor Hoeven.
North Dakota Governor John Hoeven and Iowa Governor Chet Culver, chair and vice chair of the GBC, said the nation's biofuels industry, said the nation's biofuels industry was energized by the Renewable Fuels Standard (RFS) established by Congress in 2005.
"With the advent of the RFS, the biofuels industry was clearly hitting its stride—creating thousands of jobs and improving our balance of trade by reducing oil imports," Governor Hoeven said. "Help from the federal government in terms of fiscal support and policy leadership could revitalize this critical industry, create jobs, spur investment and strengthen the ability of biofuels to address the economic, energy and environmental challenges that face our nation."
"Record oil prices led the way in creating our recent economic downturn. Pump prices are creeping back up and the days of cheap gas are in our rearview mirrors," Governor Culver added. "Now is the time to prepare our nation for the certain and inevitable return of high oil demand and high oil prices. The biofuels industry is ready—right now—to help our nation's economy get back on its feet. And the sooner we revitalize this industry, the sooner we will all reap the benefits of domestically produced fuels and the reduction of costly oil imports that will result."
On February 18, 2009, the Governors' Biofuels Coalition sent a letter to the White House acknowledging President Obama's support for biofuels and urging him to take specific actions to advance the contribution of the biofuels industry to the nation's workforce, economy and energy security including:
Articulate a vision for the nation's biofuels future that clearly outlines the role of biofuels in addressing and overcoming America's economic, energy and environmental challenges;
Establish an interagency task force on lifecycle greenhouse gas emissions and transportation fuels, involving the U.S. Department of Agriculture (USDA), U.S. Environmental Protection Agency (EPA) and U.S. Department of Energy (DOE). The task force would be charged with resolving the debate on this issue by annually and objectively assessing and comparing the lifecycle analysis of biofuels;
Initiate an immediate substantially similar ruling from the EPA on E13 that would immediately expand the market for domestic biofuels by approving 13% ethanol blends, which are already within EPA's allowable variance;
Create new policy options that continue to increase the sustainability of biofuels feedstock production with USDA leading an effort focused on water efficiency and water quality, fertilizer use, habitat conservation, and crop management practices related to the production of biofuels and next-generation, home-grown fuels;
Implement the nation's first comprehensive biofuel market development program by creating policies that remove marketing barriers to E85, increase flexible fuel vehicle production, assist retail marketing efforts and increase funding for E85 development.
In addition to requesting the President's support on these issues, the Governors' Biofuels Coalition outlined its role in initiating a grassroots effort to strengthen and broaden public awareness and support for biofuels development and market availability. "It is important that America keep its eye on the ball when it comes to biofuels," Governor Hoeven added. "We must continue to engage the public about the value of ethanol and biofuels. The governors involved in the broad-based GBC are uniquely positioned to provide leadership in this regard and speak directly to our citizens specifically about what biofuels can do for our states."
During the news conference, the GBC also acknowledged support and cooperation from a number of organizations including the American Coalition for Ethanol, Growth Energy, Biotechnology Industry Organization, Renewable Fuels Association, National Biodiesel Board, Clean Fuels Development Coalition, Environmental and Energy Study Institute, National Ethanol Vehicle Coalition and 25x'25.
"Difficult economic times in America have historically led to a surge in innovation and creativity," Governor Culver added. "Today's biofuels and the next generation of biofuels are an area in which innovation and technological advancement are happening every day. Biofuels truly are a growth area for our nation—and we cannot afford to squander their potential in righting America's economy today—and strengthening America's future. In other words, biofuels offer an immediate solution as well as a long-term strategic initiative for our nation."
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