Congressmen backing plan for Midwest ethanol pipeline

March 30, 2010

Two Congressmen from Iowa and Nebraska are seeking support for a Bill to establish a major pipeline to move ethanol from the Midwest to the rest of the US.

Congressman Leonard Boswell (D-IA) and Congressman Lee Terry (R-NE) introduced the Bill known as HR 4674, or the Renewable Fuel Pipeline Act of 2010, in February. The Bill was referred to the Committee on Energy and Commerce.

Yesterday saw the two Congressmen holding a press conference to highlight their Bill, which would make a renewable fuel pipeline eligible for federal loan guarantees as a renewable energy project, allowing loan guarantees up to 80% of the project value.

Two companies, ethanol producer POET and petroleum distributor Magellan Midstream Partners, have completed a feasibility study on a 1,800-mile renewable fuel pipeline that would run from the Midwest to Linden, New Jersey. The companies believe the pipeline could be up and running by 2014.

The study suggested that the construction of the pipeline would be a “great economic boom to our country”, the Congressmen said.

“Critical step”

Congressman Boswell said the pipeline would be important for rural economies in the Midwest, and a “critical step” toward weaning this country off its dependence on foreign oil”.

He said: “The construction of a pipeline to move ethanol out of the Midwest and to the coasts will create nearly 80,000 jobs while contributing $6.6 billion to the U.S. economy.”

Congressman Terry said the Bill was “good bipartisan legislation”, that would create jobs while expanding the use of ethanol nationwide.

“Nebraska other Midwest states rely heavily on the ethanol industry,” said Congressman Terry. “This legislation is critical to reducing our reliance on foreign oil by expanding the use of biofuels like ethanol.”

Congressman Boswell and Congressman Terry were joined by the Iowa Farm Bureau, Iowa Renewable Fuels Association, Iowa Corn Growers Association, Nebraska Farm Bureau, and others backing the legislation.