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Governor Stands Up for Ethanol
DES MOINES, IA (CBS2/FOX28) At the Governors Condition of the State Address, one of the major issues he addressed was proposed changes in ethanol usage.
Iowa is working, said Governor Branstad.
The hope is to keep it that way. But one place where growth might be in danger is ethanol production which would affect corn prices. The Environmental Protection Agency (EPA) is proposing a new rule that would decrease the amount of ethanol required to be in gasoline.
If this rule is adopted, it would be a devastating setback to the agriculture sector of the Iowa economy, said Governor Branstad.
Cedar Rapids Democratic Senator Rob Hogg isn't so sure.
I think we have to a little bit keep an open mind about it. I do support renewable fuels, I think its important but I don't think its something we need to rally our state around, said Senator Hogg.
The Governor announced a forum that will allow Iowans to voice their concerns on the proposal. Secretary of Agriculture Bill Northey says it could make all the difference.
I talked to some EPA officials and they reminded me that this is a proposed rule, not a final rule, said Northey.
If the rule does go into effect, its expected to drive down the price of corn even more. It was more than $7 per bushel at the start of the year, now it sits at just more than $4.
Today, I call on the General Assembly, as its first order of business, in bipartisan fashion, to pass a resolution in support of maintaining a robust Renewable Fuels, said Governor Branstad.