Grassley Wants More Action from President on Biodiesel Tax Credit

By James Q. Lynch

(AP Photo/J. Scott Applewhite, file)

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By Becky Ogann

Story Created: May 5, 2010 at 10:59 AM CST

Story Updated: May 5, 2010 at 10:59 AM CST

WASHINGTON D.C. - 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.

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

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