Senator Ted Cruz’s victory in the Republicans' Iowa Caucus has renewed discussion about the ethanol industry and subsidies for renewable fuels.
The Republican candidate for president has said he would like to end such subsidies.
“My view on energy is simple: We should pursue an ‘all of the above’ policy,” the Texas senator wrote in a January op-ed in the Des Moines Register. “We should embrace all of the energy resources with which God has blessed America: oil and gas, coal, nuclear, wind, solar, and biofuels and ethanol. But Washington shouldn’t be picking winners and losers. That’s why my tax plan ends all energy subsidies and mandates. No Washington favoritism for oil and gas, for wind, for solar, or for anyone else. We should phase out the Renewable Fuel Standard, end all energy subsidies, and ensure a level playing field for everyone.”
Those are controversial words for many in Iowa, including Senator Chuck Grassley (D-Iowa).
“You have to remember that the renewable fuel standard is permanent law,” Grassley said. “The president cannot repeal permanent law. Only Congress can do that, and that’s a battle I’m willing to have.”
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