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Vilsack, Goodlatte debate biofuels policy

Federal support for biofuels came up for discussion at this week’s House Agriculture Committee hearing on the state of the rural economy.

Representative Bob Goodlatte of Virginia questioned Agriculture Secretary Tom Vilsack about the USDA’s Biofuels Infrastructure Partnership. That program provides 100 million dollars in grant funds for installation of biofuels blender pumps.

“It is not market forces determining this—it is the government determining how this money is going to be spent,” Goodlatte said. “I just mentioned that the ethanol industry already benefits from a unique mandate which essentially forces the American people to buy their product. Therefore, I fail to see any reason to actually increase the amount of support this industry is given.”

Vilsack defended those biofuels programs.

“Well, 450-thousand jobs that are directly or indirectly affected by this industry,” Vilsack said, “and the fact that gas is less expensive because of it.”

Goodlatte questioned that statement.

“Mr. Secretary, I would challenge whether gas is less expensive because of it. Gas is less expensive right now because of international production of gas.”

To which Vilsack responded…

“That’s part of it, Congressman. But you can’t deny the fact that study after study shows that this industry has, over time, reduce the price of gas to consumers.”

Goodlatte has been a frequent critic of the Renewable Fuels Standard and other programs that support biofuels.

AUDIO: Exchange between Goodlatte and Vilsack