Agricultural News
Renewable Fuels Association Calls Feinstein/Coburn Bill 'Oil Monopoly Protection Act'
Thu, 12 Dec 2013 13:08:35 CST
The Renewable Fuels Association came out against the "Corn Ethanol Mandate Elimination Act of 2013" introduced today by Senators Dianne Feinstein (D-CA) and Tom Coburn (R-OK).
Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), responded to the introduction of legislation that would eliminate the corn ethanol portion of the Renewable Fuel Standard (RFS), stating, "This is monumentally stupid. This legislation ought to be entitled 'The Oil Monopoly Protection Act of 2013.' This bill would deprive Americans of cost-saving, renewable fuel choice. It would set this country back in its quest to gain energy independence and further damage the environment by increasing the need for fracking, tar sands, and off-shore drilling."
Dinneen continued, "What makes this bill so nonsensical is its timing. Farmers across this country have just finished harvesting the single largest corn crop in history. Corn surpluses are headed higher and corn prices headed lower. In some areas corn prices have already fallen below the cost of production, and below where corn prices were on the day President Bush signed the Energy Independence and Security Act in 2007 into law ($4.34/bushel). This legislation would take away demand for corn at a time when farmers need it most. It would increase farm program costs and destabilize this country's agricultural industry."
Senator Feinstein says she supports next generation biofuels, but this bill undermines that commitment. Dinneen explained, "By removing first generation ethanol from the RFS, the foundation will be pulled out from underneath cellulosic ethanol and other advanced biofuels. Investors will turn their attention to incumbent fuels because the infrastructure needed to deliver future fuels and the market for them will evaporate if this bill would ever become law. Market uncertainty and lack of infrastructure is the enemy of innovation and job creation."
In conclusion, Dinneen warned, "I would caution Members of Congress and others tempted by this bill's superficial, Oil-centric, deeply misguided intent. The price to be paid for passage is higher gas prices, increased harsh environmental damage, job loss, and a brutal blow to rural economies. No one wins with this legislation, except Big Oil and the cheap corn caucus that has benefited from decades of government-subsidized feedstock."
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