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ACE says RFS bill would undo gains

The head of the American Coalition for Ethanol (ACE) says the proposed legislation announced today to reduce the Renewable Fuels Standard as it pertains to ethanol is a case of “twisted logic.”

Brian Jennings tells Brownfield if the proposed RFS Flexibility Act – sponsored by Congressmen Goodlatte of Virginia and Costa of California – were to go into effect, it would set the country back decades.

The bill, supported by the major livestock and poultry groups, would tie the amount of corn ethanol produced to U.S. corn supplies, using the corn stocks-to-use ratio.

“Frankly, using this logic,” says Jennings, “If the stocks-to-use ratio were much greater and we had a huge surplus of corn at the end of the year maybe we ought to increase the Renewable Fuels Standard so we could make more corn ethanol. I don’t think the opponents of ethanol would want that but that’s the logic they’re applying to this in trying to reduce the RFS.”

Jennings says he doesn’t believe the bill itself is a real threat to the ethanol industry but is an attempt to discredit ethanol, “Well, I think some of the opponents of ethanol, frankly, smell blood in the water or they think they smell blood in the water. They know that the tax credit, the Volumetric Excise Tax Credit is going away at the end of the year and I think they would like to kick ethanol when ethanol is down,” but, Jennings says those opponents will face some stiff resistance because, “There’s strong bipartisan support for the RFS in Congress.”

He adds that the EPA already has a lot of flexibility to adjust the Renewable Fuels Standard.

Livestock and poultry groups support the bill, saying the RFS is partly to blame for more of the tight corn supply going to ethanol production, thus, raising the cost of corn for feed – causing layoffs and other economic hardships for producers.

AUDIO: Brian Jennings (5:00 mp3)

RFS bill ties ethanol production to corn supplies

  • Good news! I hope they pass the RFS Flexibility Act . It is long overdue, but I wish they would eliminate the ethanol subsidy entirely. It is harmful both to the livestock industry and to the environment, since it actually takes more energy to turn corn into ethanol than the resulting fuel can produce itself. This is just a special interest program for a limited category of farmers, who benefit at the expense of all livestock farmers and everyone who eats food.

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