Grassley wants more action from president on biodiesel tax credit

 By James Q. Lynch

UPDATED:  Sen. Chuck Grassley doesn't question President Obama's support for biofuels, but wishes he'd push a little harder for passage of the biodiesel tax credit, a move that would put 23,000 people back to work.

Grassley, a Republican, called it ironic May 5 that the president didn't call for extension of the tax credit, which expired Dec. 31, while he was promoting renewable fuels in Iowa last week.

Obama toured manufacturers of wind energy components – “and that's a good thing he did … we want to promote wind energy,” Grassley said.

Obama's trip took him within a few miles of biodiesel facilities one in Keokuk, Washington and Crawfordsville that are idled because of the expiration of the biodiesel fuel tax credit.

“So the thousands of jobs created by the wind industry in Iowa have essentially been offset by the thousands of jobs lost in the biodiesel industry,” Grassley said.

Although Obama didn't publicly address the issue during his visit, Brad Albin of Renewable Energy Group and secretary of the Iowa Renewable Fuels Association told the president that plants are idled and 90 percent of the biodiesel employees have been laid off as a result of the tax credit lapse.

According to Albin, he told the president: “We're going to die without this tax credit.”

Renewable Energy Group has laid off nine employees at a facility in Ralston and 13 in Newton – a plant that is a mile down the road from a wind manufacturing facility Obama visited on Earth Day 2009, Grassley noted. 

Albin said the president assured him he wouldn't let the industry die.

“I'm the president and I promise I'll do whatever I can.  Look, I'm on your side, but I've got a Congress to deal with,” Albin said the president told him.

“It seems that even President Obama is frustrated by the lack of action by the Democratic Congressional leadership on this issue,” Grassley said.

He has worked with Democratic Sen. Maria Cantwell on a long-term extension. It was never considered.

On January 1st of this year, about 23,000 people were employed in the biodiesel industry, according to Grassley. Because of the lapse in the credit, nearly every biodiesel facility in the country is idled or operating at a fraction of its capacity. About 2,000 jobs have been lost at Iowa's 15 biodiesel refineries.

In fact, may 3, Maple River Energy, a 5 million gallon per year soybean crush plant, oil refinery and biodiesel production facility near Galva, made the difficult decision to temporarily lay off 12 of its 18 employees until the biodiesel blenders credit is reinstated.

In December, the House passed an extension of the biodiesel tax credit. In March, the Senate amended the package that included the extension. Now the bill is back in the House. Iowa congressmen expect to have an agreement on how to pay for the extension the House and Senate can approve before the end of the month.

The Senate has voted to extend the credit, but the House has not taken up the extension.

Grassley, who knows Obama's commitment to renewable energy from working with him when the president was a senator, would like to see more active support now.“He ought to be giving some push to this, particularly when traveling southeast Iowa to say that you want a jobs bill, you want to promote green jobs, you want to promote more jobs,” Grassley said. “One little simple bill, not controversial, and you could put 23,000 people back to work right away.”