'Parochial' politics of ethanol

Posted by Jeff Zeleny at 5:59 a.m. CDT

It was a question that no farm-state senator is eager to answer.

Sen. Barack Obama (D-Ill.) was giving a lecture to college students about climate change Monday evening. He had just offered several practical examples of why global warning should be a real concern, pointing to an increase in hurricanes, wild fires and tornadoes.

Then, the conversation detoured to a slightly stickier subject as a student rose to ask this question: If you are trying to achieve greater fuel efficiency – and lower gas prices – how can you justify placing a tariff on imported ethanol? Is it simply to support farmers?

"That's a great question. Who put this guy in here? Who is asking me this smart question?" said Obama, sharing a stage with former Senate Majority Leader Tom Daschle of South Dakota. "As you know, both of us came from farm states, so I have to be careful."

The question cut straight to the heart of one slice in the controversy over the cost of gas. There is a temporary tariff on imported ethanol on top of a standing tariff of 2.5 percent of its value.

First, Obama spent a few minutes trying to explain why he believed corn-based ethanol should be protected from alternative fuel sources being created outside the United States. Then, he said he believes "a portion" of the tariff placed on imported ethanol should go to research and development so different types of ethanol can be created domestically.

"Am I prepared to eliminate the tariff right away?" Obama said. "Here I'm being somewhat parochial, and I'll say no.

With a smile, he added: "I'm not sure that's the right policy answer – to be honest with you."

It was, perhaps, a rare moment of candor in the complicated politics of ethanol. Before the discussion concluded for the evening, Obama left his audience of a few hundred students with another frank-sounding answer.

"The environmental is probably the largest long term issue that we are facing," Obama said. "But it's very hard for politicians to make short term sacrifices for long term benefits, because the attitude is always 'I'll be out of office in four years.'"