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The Car and Truck Fleet and Leasing Management Magazine

U.S. Senators Seeking Repeal of Ethanol Mandate

February 27, 2015

Photo via Wikipedia.
Photo via Wikipedia.

Two U.S. Senators have introduced bipartisan legislation that would repeal a renewable fuel mandate that requires refiners to blend ethanol in the nation's fuel supply.

The bill, which is sponsored by Sens. Pat Toomey (R-Pa.) and Dianne Feinstein (D-Calif.), was introduced on Feb. 26. It would repeal the Renewable Fuel Standard (RFS) set by the U.S. Environmental Protection Agency each year, Feinstein announced. Sen. Jeff Flake (R-Ariz.) has also signed on to the measure.

"The federal mandate for corn ethanol is both unwise and unworkable," Feinstein said in a statement. "If the mandate continues to expand toward full implementation, the price of corn will increase. According to the Congressional Budget Office, that would mean as much as $3.5 billion each year in increased food costs. Americans living on the margins simply can’t afford that."

The ethanol industry immediately opposed the legislation. The Renewable Fuels Association called it "an attempt to undercut" the standard.

"Senators Feinstein and Toomey continue to operate under the misguided assumption that the RFS is driving food prices higher," said Bob Dinneen, the association's president and CEO. "It is not. Corn is less expensive today than when the RFS was passed."

The RFS has been a tremendous success and the resulting production of ethanol has many value added benefits. For instance, every $1.00 worth of feedstock that goes into the production of ethanol results in $1.83 in fuel and animal feed. Moreover, the RFS has created jobs, helped reduce the amount of oil the United States must import from foreign countries, significantly lowered greenhouse gas emissions and helped bolster rural communities. - See more at: http://www.ethanolrfa.org/news/entry/feinstein-toomey-legislation-operating-under-a-misguided-assumption/#sthash.mDxbEuQx.dpuf
The RFS has been a tremendous success and the resulting production of ethanol has many value added benefits. For instance, every $1.00 worth of feedstock that goes into the production of ethanol results in $1.83 in fuel and animal feed. Moreover, the RFS has created jobs, helped reduce the amount of oil the United States must import from foreign countries, significantly lowered greenhouse gas emissions and helped bolster rural communities. - See more at: http://www.ethanolrfa.org/news/entry/feinstein-toomey-legislation-operating-under-a-misguided-assumption/#sthash.mDxbEuQx.dpuf
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  1. 1. Sam Besser [ March 02, 2015 @ 02:52PM ]

    If it's so great for the economy and for corn prices, then why does it need to be mandated? The free market would drive it forward.

  2. 2. Robert Ulrichson [ March 09, 2015 @ 04:53AM ]

    Ethanol has hit the point, where it needs to stand on its own, in the free market, or go the way of the dinosaur.
    The sole benefit of MANDATING it, and the reason insiders in the business are screaming about the possibility of dropping the mandate, is the continued TAXPAYER FUNDED, Govt. support money, that producers/distributors currently reciieve!! It is well past the "developmental stage", and needs to stand, or fall, on its true economic cost/benefit, not on keeping taxpayers funding flowing, so a few companies can keep the benefit of guaranteed profit, because taxpayers fund production costs.

  3. 3. Terry Snyder [ May 11, 2015 @ 12:11PM ]

    Ethanol is in gasoline because the EPA mandated an oxygenator be added to gasoline,
    the first choice was MTBE which turned out to be carcinogenic. Ethanol is the lessor of 2 evils.

 

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