Agricultural News
RFA Dismisses Proposed Lankford Legislation
Fri, 13 Jun 2014 11:16:14 CDT
The Renewable Fuels Association (RFA) dismissed Rep. James Lankford's (R-Okla.) short-sighted effort to undercut the continued growth of renewable fuels by eviscerating the Renewable Fuel Standard (RFS). Rep. Lankford introduced H.R. 4849, the Phantom Fuels Elimination Act that seeks to eliminate the so-called "corn ethanol mandate" and require domestic production of all other RFS blending requirements.
After hearing about the legislation, Bob Dinneen, president and CEO of the RFA, said:
"Congressman Lankford should get his facts straight. In dropping this bill, Rep. Lankford suggests ethanol is a 'phantom fuel.' Wrong! There is more than enough ethanol to meet the RFS. If it didn't exist, the oil companies wouldn't be fighting so hard to protect their monopoly over the nation's fuel supply.
"Incomprehensibly, Rep. Lankford states that his bill is needed to reduce consumer gasoline prices. Wrong again! Ethanol is the cheapest transportation fuel in the world. Ethanol today is 50 60 cents cheaper than wholesale gasoline, lowering the price at the pump. Moreover, ethanol stretches the domestic fuel supply and reduces the amount of petroleum needed in our gasoline, ultimately lowering the cost of crude oil. Considering this macroeconomic effect, energy economist Philip Verleger found that ethanol saves drivers an average of $1.00/gallon in 2012 and 2013.
"Ethanol puts money back in the hands of consumers, including Rep. Lankford's constituents in Oklahoma. The rationale behind this legislation is baseless. This phantom exists and is haunting Rep. Lankford's increasingly scared oil industry."
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