Biofuels industry to Obama: Hang tough on renewable fuel standard

Well imagine that, subsidy farmers want subsidies and mandates kept

The biofuels industry on Monday urged President Obama to resist persistent calls from governors and lawmakers to relax the renewable fuel standard (RFS), claiming dropping support for it would do little to combat high corn prices.

The Biofuels Producers Coordinating Council, a recently formed group meant to organize the biofuels industry’s messaging, sent a letter to Obama refuting arguments that waiving the RFS would provide relief for drought-stricken farmers. The letter comes shortly after industry groups lauded GOP presidential candidate Mitt Romney for supporting the RFS in an energy plan he announced Thursday.

“With so many Americans in distress from the 2012 drought, it may be difficult to accept that the flexibility provisions built into the RFS and the market itself are working to minimize the consumer impact of lower grain yields,” the letter to Obama said. “But that is exactly what is happening.”
The RFS requires refiners to blend 13.2 billion gallons of corn ethanol into traditional transportation fuel this year. Obama and Agriculture Secretary Tom Vilsack have consistently touted the RFS, though White House Spokesman Jay Carney said earlier this month that the administration is “looking” at the policy.

Biofuels groups said in the letter that meeting this year’s blend target will not be a problem because of a backlog of credits from previous years of overproduction. They also said waiving the RFS would have a cooling effect on investment in renewable fuels.

E2 Wire

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2 responses to “Biofuels industry to Obama: Hang tough on renewable fuel standard

  1. For the moment, let’s put aside the question of whether the RFS is “good” or not. It’s a government program fueling an artificial market, which has in turn spawned a massive industry upon which many, including many rural communities and the employed, have become dependent.

    Look at what canceling the RFS would do. Collapse of many rural communities which, due to their nature (out here at least) are nearly closed economies. Unemployment in those communities, because when the ethanol jobs are gone, there’s only so many bartender positions open. And actually many of those jobs will go as well.

    Once you create a government program that invites, nay, encourages dependency, you get something where there’s no easy way out.

  2. “there’s no easy way out.”

    Sure there is. You end it. If you live by the sword, you will die by the sword. The people who took advantage of a government program are not ahead in line of all the people who pay for it.

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