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As he prepares to launch his presidential campaign next week, Rand Paul is looking to broaden his appeal to Iowas homegrown biofuel industry by co-sponsoring an ethanol-friendly bill with the states popular senior senator, Chuck Grassley.

Backing the measure gives Paul a way to appeal to Iowas alternative energy sector, while not compromising his free-market ideology when he barnstorms the state next week as part of his expected presidential kick-off.

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Pauls bill would make it easier to increase the amount of ethanol blended into vehicle fuel. Current Environmental Protection Agency rules impose a 10 percent limit on the amount of ethanol that can be mixed into fuel during the summertime. Pauls change is backed by key renewable fuel interest groups.

Alternative energy is a tricky issue in Iowa, where Grassley has long advocated legislation offering tax breaks for wind power and encouraging the sale of ethanol. Republican presidential hopefuls have to thread the needle between appealing to the critical caucus states energy producers while also attempting to appease a conservative base that opposes government intervention in the energy sector.

Paul and Grassleys bill would allow truck fleets to be converted more easily to run on ethanol blends, permanently extend a tax credit for manufacturers of alternative fuel vehicles, lower taxes on liquid natural gas and, most importantly for Iowans, allow a fuel blend of 15 percent ethanol to be sold year-round.

Paul has been critical of government regulations that dictate what fuels are sold, including the Renewable Fuel Standard, a law Congress created in 2005 and expanded in 2007 thats intended to gradually incorporate more alternative fuels into gasoline blends.

Paul said his new proposal is a way to get around the EPAs onerous regulation of fuels.

Sen. Paul supports removing regulatory barriers to the use of ethanol and other renewable fuels, which would likely have the effect of growing the use of these environmentally friendly fuels. He does not support the government telling consumers or businesses what type of fuel they must use or sell, an aide said on Wednesday.

Some would like Paul to go further. Although the Renewable Fuels Association, a major energy player in D.C., supports Pauls bill, it still wants the federal government to stand fully behind the RFS and not water it down or repeal it.

Continued here:
Rand Paul finds a biofuels proposal he can get behind