In Iowa, Clinton Backs Ethanol as Part of Rural Aid Plan

By Anne Gearan (The Washington Post) ... The Democratic front-runner’s rural aid package contains an endorsement for ethanol, the corn-based fuel additive. Iowa is the world’s largest producer of ethanol, which is at the center of an environmental and resources debate about the expense and efficiency of growing corn for fuel instead of food.

A fact sheet provided by (Hillary) Clinton’s campaign ahead of her speech says she would “strengthen” the federal Renewable Fuel Standard to promote development of advanced biofuels and improve “access” to ethanol products called E15 and E85. The plan does not state how this would be done and does not address the food vs. fuel environmental debate, although it follows the section on biofuels with bullet points on Clinton’s clean energy program.

The plan envisions expanded tax credits and grants for rural communities and more help for young farmers to help them start businesses or retain family farms. The campaign did not spell out how Clinton would pay for the additional help, nor did it discuss the prospects for getting congressional approval for some elements of the plan.

The Republican National Committee called the plan "unserious." READ MORE and MORE (AutoBlog) and MORE (Biofuels Digest) and MORE (KWWL includes VIDEO interview)

Excerpts from Biofuels Digest: The proposal had 4 key focal points. We’ve bolded the key items for renewable fuels and the bioeconomy, eight in all.

1. Spurring investment to power the rural economy.

◦ Expand access to equity capital for rural businesses by increasing the number of Rural Business Investment Companies (RBICs), which make equity investments in small rural businesses.
◦ Simplify regulations for community banks to ensure they are focused on funding our small business and are not swallowed up by a never-ending cycle of examinations and paperwork.
◦ Create a national infrastructure bank and invest in infrastructure to improve the country’s rural transportation, water, and broadband infrastructure so that it meets the demands of our modernizing industries and creates jobs in rural America.
◦ Streamline, expand, and make permanent the New Markets Tax Credit (NMTC) to increase the amount of credits available to low-income communities and add new credits for hard-hit communities that have seen jobs and production depart.
◦ Strengthen USDA grant programs to make them less about bureaucratic buckets and more about funding flexibility, leveraging local resources, and measuring results.

2. Raising agricultural production and profitability for family farms.

◦ Support the next generation of farmers by doubling funding for the Beginning Farmer and Rancher Development program to provide education, mentoring, and technical assistance to aspiring farmers and ranchers.
◦ Build a strong local and regional food system by doubling funding for the Farmers Market Promotion Program and the Local Food Promotion Program to expand food hubs, farmers markets, SNAP recipients’ access to fresh food, and to encourage direct sales to local schools, hospitals, retailers and wholesalers.
◦ Provide a focused safety net for farmers and ranchers by continuing to make progress in targeting federal resources in commodity payment, crop insurance, and disaster assistance programs to support family operations that truly need them in challenging times, like when weather-related disasters devastate whole areas of the country.
◦ Fight for comprehensive immigration reform because America’s immigrants and migrant workers play a critical role in developing and supporting America’s agricultural economy.

3. Promoting clean energy leadership and collaborative stewardship.

◦ Fully fund the Environmental Quality Incentives Program (EQIP), which provides assistance to producers – including a set-aside for minorities and veterans – who are working to conserve and improve natural resources on their farms and ranches.
◦ Strengthen the Renewable Fuel Standard so that it drives the development of advanced cellulosic and other advanced biofuels, protects consumers, improves access to E15, E85, and biodiesel blends, and provides investment certainty.
◦ Support the bio-based economy’s dynamic growth by doubling the loan guarantees made through the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program.
◦ Launch her Clean Energy Challenge to give states, cities, and rural communities ready to lead on clean energy the tools, resources, and flexibility they need to succeed. In doing so, Clinton will achieve the twin goals of having more than half a billion solar panels installed in this country by the end of her first term and producing enough clean renewable energy to power every home in America within 10 years of her taking office.

4. Expanding opportunity in rural communities across America.

◦ Make critical investments in our youngest learners by doubling funding for Early Head Start and working to ensure that every 4-year old in America has access to high-quality preschool in the next ten years.
◦ Ensure cost won’t be a barrier for college. Clinton’s New College Compact incorporates President Obama’s plan to make community college tuition free so that young students and displaced workers can gain the skills they need to succeed.
◦ Improve health care access for rural Americans by further integrating telehealth, remote patient monitoring, and other information technologies into our broader health system.
◦ Ensure that rural communities have better access to substance abuse prevention, early intervention, and treatment. Substance abuse is striking small towns and urban areas across America.

The Bottom Line

We’d like to see more candidates issuing comprehensive plans for Rural America that include strengthening of the RFS, doubling loan guarantees, increasing the number of RBICs, creating a national infrastructure bank and streamlining rural bank regulation.

For example, what exactly does Secretary Clinton mean in offering to “Strengthen the Renewable Fuel Standard”? What does an National Infrastructure Bank look like? So far, we’ve seen benefits, but not features in the proposals. READ MORE