Grassley wants any future auto bailout to include flex fuel vehicle and ethanol requirements


  

           WASHINGTON – Senator Chuck Grassley today said in a letter to President Barack Obama that if American taxpayers are asked once again to help bail out the domestic auto maker industry, then it's time to secure a commitment from the auto industry about their production of flex fuel vehicles and the industry's support for blends of ethanol in gasoline above ten percent.

 

As a candidate during the last two years, President Obama's energy plan indicated a desire to work with Congress and the auto companies to ensure that all new vehicles have Flex Fuel Vehicle capability by the end of his first term in office. Last week, during his address to Congress, the president was quick to mention that his administration would not walk away from the domestic auto industry. 

 

"If U.S. taxpayers are being called upon to bail out the auto industry and underwrite their re-tooling, it seems only reasonable that we can expect them to manufacture vehicles that fully utilize home-grown biofuels and enable our efforts to eliminate our dependence on foreign oil," Grassley said.

 

Here's a copy of the text of the letter to President Obama.

 

 

                                                                       March 3, 2009

 

The Honorable Barack Obama

President of the United States

1600 Pennsylvania Avenue, NW

Washington, DC 20500

 

Dear President Obama:

 

You've stated a strong commitment to polices that reduce our dependence on foreign oil, reduce emissions of greenhouse gasses and help rebuild America's economy through the creation of green jobs. Producing more of our transportation fuels from homegrown, renewable resources can help achieve economic growth, increase our national security, and provide a cleaner environment. And, the production of domestic renewable fuels has broad bipartisan support.

 

During your time in the Senate, you advocated policies to promote the production, distribution and consumption of domestically-produced biofuels. I was pleased to cooperate with you on these objectives. As a candidate for President, your energy policy endorsed a mandate that all new vehicles be flexible fuel capable. Specifically, your comprehensive energy plan indicated that you would work with Congress and the auto companies to ensure that all new vehicles have FFV capability by the end of your first term in office. 

 

In your address to the Joint Session of Congress, you stated your administration will not walk away from the domestic auto industry, and that you are committed to a re-tooled auto industry. As your administration continues to consider additional financial assistance for the auto industry, I strongly urge you to secure a binding commitment regarding the production of FFVs. While the domestic auto manufacturers have shown leadership in producing FFVs, we should expect a commitment from them to produce 100 percent FFVs in the shortest possible time frame.

 

In addition, auto manufacturers have been reluctant to support blends of ethanol in gasoline beyond ten percent. To achieve our shared goal of reducing our dependence on foreign oil, auto manufacturers must also commit to support and advocate intermediate blends of alternative fuel. Surely if U.S. taxpayers are being called upon to bail out the auto industry and underwrite their re-tooling, it seems only reasonable that we can expect them to manufacture vehicles that fully utilize home-grown biofuels and enable our efforts to eliminate our dependence on foreign oil.

 

Thank you for your consideration and I look forward to hearing from you on this important issue.

 

                                                                       Sincerely,

 

 

 

                                                                       Charles E. Grassley

                                                                       United States Senator

 

cc:       Honorable Tim Geithner, Treasury Secretary

           Honorable Larry Summers, National Economic Council Director

           Honorable Ray LaHood, Secretary of Transportation

           Honorable Hilda Solis, Secretary of Labor

           Honorable Dr. Steven Chu, Secretary of Energy

           Honorable Christina Romer, President's Council of Economic Advisers Chair

           Honorable Peter Orszag, Office of Management and Budget Director

           Honorable Lisa Jackson, Environmental Protection Agency Administrator

Honorable Carol Browner, White House Office of Energy and Climate Change