Post by Mr. Clean on Mar 13, 2009 11:56:56 GMT -5
Obama backs corn ethanol, but urges biofuels variety
Washington, D.C. - President Barack Obama says he wants to preserve the nation's ethanol industry while developing new versions of biofuels made from feedstocks other than corn.
Obama stopped short of saying whether his administration would bail out the struggling ethanol industry by increasing the amount of the additive that can be blended with gasoline.
"Corn-based ethanol over time is not going to provide us with the energy-efficient solutions that are needed," Obama said during a question-and-answer session in the White House on Wednesday with regional newspaper reporters.
But he said he also wanted to maintain the "progress we've made in building up a biofuels infrastructure and the important income generation that has come from ethanol plants."
The ethanol industry last week petitioned the Environmental Protection Agency to raise the limit on ethanol in gasoline to as much as 15 percent, up from the current cap of 10 percent.
Ethanol groups told the agency that the 10 percent limit was "a primary reason" for the industry's recent slump. Agriculture Secretary Tom Vilsack this week endorsed raising the cap to 12 percent to 13 percent.
Environmental agency officials have said that the 10 percent limit has not hit the industry yet but that the cap will make it difficult to meet the nation's annual usage mandates in coming years. The agency has been struggling with how to legally justify raising the limit, given unanswered questions about the impact of the increased ethanol content on engines, boats and outdoor equipment.
Raising the limit probably wouldn't have a major impact on ethanol profits or corn prices in the short term, unless it encourages ethanol producers to exceed the annual usage mandates, said Bruce Babcock, an economist at Iowa State University.
Obama all but confirmed Wednesday that he would make the ultimate decision about increasing the ethanol cap, which he said would involve "reconciling a lot of different issues."
Also in the interview, Obama defended his handling of the overall economy and his decision to push Congress to overhaul the health care system and regulate greenhouse gases at the same time he is trying to end the recession.
The housing market already is showing signs of bottoming out in some regions, he said.
"There are no shortcuts to long-term economic growth, and we can't just keep on doing the same things we were doing before and somehow expect that all of our problems will be solved," Obama said.
He also addressed concerns about food safety that have arisen from a nationwide recall of peanut butter products. He said he has asked the U.S. Department of Agriculture and the Food and Drug Administration to better coordinate their regulation of food. The USDA is responsible for the safety of meat, while the FDA regulates most other products, including peanut butter.
But Bill Marler, a Seattle-based lawyer who represents victims of food poisoning, said reorganization isn't the answer.
He said more urgent steps are needed, such as improved tracking of illnesses, additional inspectors for imported foods, and requirements for food processors to develop and follow sanitation plans.
Washington, D.C. - President Barack Obama says he wants to preserve the nation's ethanol industry while developing new versions of biofuels made from feedstocks other than corn.
Obama stopped short of saying whether his administration would bail out the struggling ethanol industry by increasing the amount of the additive that can be blended with gasoline.
"Corn-based ethanol over time is not going to provide us with the energy-efficient solutions that are needed," Obama said during a question-and-answer session in the White House on Wednesday with regional newspaper reporters.
But he said he also wanted to maintain the "progress we've made in building up a biofuels infrastructure and the important income generation that has come from ethanol plants."
The ethanol industry last week petitioned the Environmental Protection Agency to raise the limit on ethanol in gasoline to as much as 15 percent, up from the current cap of 10 percent.
Ethanol groups told the agency that the 10 percent limit was "a primary reason" for the industry's recent slump. Agriculture Secretary Tom Vilsack this week endorsed raising the cap to 12 percent to 13 percent.
Environmental agency officials have said that the 10 percent limit has not hit the industry yet but that the cap will make it difficult to meet the nation's annual usage mandates in coming years. The agency has been struggling with how to legally justify raising the limit, given unanswered questions about the impact of the increased ethanol content on engines, boats and outdoor equipment.
Raising the limit probably wouldn't have a major impact on ethanol profits or corn prices in the short term, unless it encourages ethanol producers to exceed the annual usage mandates, said Bruce Babcock, an economist at Iowa State University.
Obama all but confirmed Wednesday that he would make the ultimate decision about increasing the ethanol cap, which he said would involve "reconciling a lot of different issues."
Also in the interview, Obama defended his handling of the overall economy and his decision to push Congress to overhaul the health care system and regulate greenhouse gases at the same time he is trying to end the recession.
The housing market already is showing signs of bottoming out in some regions, he said.
"There are no shortcuts to long-term economic growth, and we can't just keep on doing the same things we were doing before and somehow expect that all of our problems will be solved," Obama said.
He also addressed concerns about food safety that have arisen from a nationwide recall of peanut butter products. He said he has asked the U.S. Department of Agriculture and the Food and Drug Administration to better coordinate their regulation of food. The USDA is responsible for the safety of meat, while the FDA regulates most other products, including peanut butter.
But Bill Marler, a Seattle-based lawyer who represents victims of food poisoning, said reorganization isn't the answer.
He said more urgent steps are needed, such as improved tracking of illnesses, additional inspectors for imported foods, and requirements for food processors to develop and follow sanitation plans.