According to Des Moines Register’s Philip Brasher, Agriculture Secretary Tom Vilsack wants a long-term extension to the subsidies for ethanol but won’t say how Congress should pay for measures, which could cost $40 billion or more. Vilsack says long-term extensions of the ethanol subsidies are needed in order to attract private capital to new biofuel projects. “It’s very difficult to get investors interested,” he said, “without this long-term commitment.”
The Agriculture and Energy departments and the Environmental Protection Agency (EPA) hope to reach a consensus on a biofuel development strategy this summer, according to Vilsack. He did not say when the plan would be released. “We need a plan. We need to show that there’s a way to get to 36 billion gallons,” he said. The Administration said in a report issued in February that the government needs to set a timetable for commercializing advanced biofuels and to take a region-by-region approach to developing production and markets.
Vilsack expressed confidence that the EPA would allow more ethanol to be added to the gasoline used in conventional cars and trucks. The limit is now 10 percent. The industry wants the cap raised to 15 percent. A decision is expected this summer.
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