Blog Archive
Subscribe in a reader

Don't expect the new president to have much time for biofuels ... not right away

Posted: October 6, 2008 at 09:52 AM CST

Hello. This is Tom Bryan, BBI International Vice President of Communications, filling in for Dave Nilles today.

I was fortunate to hear former South Dakota Sen. Tom Daschle (D.-S.D.) speak at the Renewable Fuels Association annual board meeting last Friday in Washington, D.C. Daschle remains the strong ethanol supporter that he’s always been, and being from the Dakotas myself, it was a real honor to see him in person and listen to his message. Daschle reminded our group of about 100 U.S. ethanol producers and industry service providers that energy supply, energy security, energy costs, and climate change are going to continue to create a future for ethanol—especially cellulosic ethanol—in the Untied States. However, he said, unity is needed immediately. Daschle said corn and cellulosic ethanol producers must unite; growing into two separate industries would be a mistake. By all means, the RFA seems to agree. The association just elected its 2008-’09 Executive Committee, which includes for the first time a producer of cellulosic ethanol, John Howe of Verenium Corp. In fact, the RFA now has 12 member companies that are future cellulosic ethanol producers.

Listening to Daschle speak, I couldn’t help but be reminded of how he was defeated in an upset by Sen. John Thune (R-S.D.) in the 2004 election. It was the first time a Senate party leader—Daschle was majority leader in the Senate, remember—was defeated in an election since 1952. And while Thune is certainly a good friend to ethanol, the ethanol industry lost a great advocate the day Daschle left office.

Anything can happen in politics. And it was somewhat ironic that, just after hearing from Daschle, the RFA board meeting included a political update from government relations consultant Jim Massie, who gave us an update on the legislative schedule, priorities and “what to expect” from the next Congress. Massie, who remained completely bipartisan, said that regardless of who wins the White House, most national polling shows that the Democrats are going to win both the House and the Senate by significant margins. He said the Dems could end up with 250 seats in the house and maybe—maybe—60 seats in the Senate, giving them cloture. And that would be … well, something to watch. If the Dems win by the margins Massie thinks they will, he said “more legislation will happen than you’ve probably ever seen,” especially if McCain wins the presidency (it just works that way … it's a spite thing).

But regardless of how the election plays out, the nation will be dealing with massive deficit and budget problems, stemming from the bailout bill, that will overshadow almost everything else. And the new president will be consumed with the wars in Iraq and Afghanistan, the economy, the budget and healthcare … leaving little time to focus on renewable energy. “The in-box is already full,” Massie said. So don’t expect the next president, even if it is Obama, to come out of the gates with sweeping new biofuels proposals.

Finally, while many in our industry are siding with Obama for president, RFA President Bob Dineenn reminded members that the RFA does not endorse political candidates. “We support policies, not candidates,” he said.

-Tom Bryan