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Coalition against Extension of Ethanol Subsidy

by 5m Editor
3 March 2011, at 9:49am

US - The National Chicken Council, US Poultry & Egg Association, and several state poultry federations are among a vast coalition of 90 organizations opposing extension of the blenders’ credit that subsidizes the production of ethanol.

The groups sent letters to the leaders of Congress today calling on them to let the tax credit expire on schedule at the end of 2011. The ethanol industry is lobbying Congress for an extension.

“Congress has the opportunity to end the $6 billion a year subsidy to gasoline refiners who blend corn ethanol into gasoline,” the letter said. “At a time of spiraling deficits, we do not believe Congress should continue subsidizing gasoline refiners for something that they are already required to do by the Renewable Fuels Standard.”

A coalition of 90 business associations, taxpayer advocates, hunger and development organizations, agricultural groups, free-market groups, religious organizations, environmental groups, budget hawks, and public interest organizations today sent the letter to Congressional leadership urging Congress to let the refundable Volumetric Ethanol Excise Tax Credit (VEETC) expire and to resist calls for spending on infrastructure for conventional biofuels.

In addition to NCC and USPOULTRY, the letter was signed by the state associations representing the poultry industry in Alabama, California, Georgia, Indiana, Mississippi, North Carolina, Arkansas, Missouri, and Oklahoma, Tennessee, Texas, and Virginia.

In the letter, the coalition says:

“The undersigned diverse group of business associations, taxpayer advocates, hunger and development organizations, agricultural groups, free-market groups, religious organizations, environmental groups, budget hawks, and public interest organizations urge you to allow the refundable Volumetric Ethanol Excise Tax Credit (VEETC) to sunset this year and to resist calls for spending on infrastructure for conventional biofuels.

“In particular, Congress has the opportunity to end the $6 billion a year subsidy to gasoline refiners who blend corn ethanol into gasoline. At a time of spiraling deficits, we do not believe Congress should continue subsidizing gasoline refiners for something that they are already required to do by the Renewable Fuels Standard.

“Experts like the Congressional Budget Office and the Government Accountability Office have concluded that the subsidy is unnecessary, and leading economists agree that ending it would have little impact on ethanol production, prices or jobs.

“We urge you to let VEETC expire and resist calls for spending on infrastructure for conventional biofuels.”


You can find out about the organizations that signed the coalition letter by clicking here.