The Honorable Bob Goodlatte | The Honorable Jim Costa |
The Honorable Steve Womack | The Honorable Peter Welch |
Dear Representatives Goodlatte, Costa, Womack, and Welch:
On behalf of the members of National Taxpayers Union (NTU), I write in support of your “Renewable Fuel Standard (RFS) Reform Act.” This bill would eliminate the corn ethanol mandate, reduce the cellulosic ethanol mandate, and cap ethanol blends at E10. Together, these important reforms would help mitigate the broad-reaching harm imposed by the RFS.
After a decade, it’s obvious that biofuel mandates established in the Energy Policy Act of 2005 are impractical and in urgent need of reform. The advanced cellulosic biofuels meant to relieve our economy’s dependence on traditional fuels have not come to fruition, while at the same time the once nascent domestic corn ethanol industry is now a global leader in exports and can no longer justify receiving taxpayer support. Lack of flexibility and common sense on the part of the law and administrators have caused ever-increasing gallons of costly corn ethanol to be mixed with our fuel supply to meet arbitrary standards. And the Renewable Identification Number system created to track compliance with the RFS has proven to be susceptible to fraud.
For taxpayers, the RFS scheme has created economically harmful market distortions. Higher blends of ethanol in the fuel supply increase the risk of engine damage. Ethanol’s lower fuel economy means that consumers have to refill their gas tanks more often, which is especially painful when fuel prices are high. Diverting 40 percent of the corn crop to fuel tanks has reduced available feedstocks for livestock and dairy producers – increasing the cost of food, both here and abroad where fluctuating corn prices have escalated food instability. The promise of ever-increasing corn ethanol production has incentivized farmers to plow under ecologically sensitive, marginal lands and to plant corn at the expense of crop diversity, further increasing prices.
Unfortunately, the RFS has become a poster child for the damaging unintended consequences that occur when governments meddle in markets. With the Environmental Protection Agency now almost two years behind in issuing a rule for the 2014 Renewable Volume Obligations, the need for Congress to take action is clear. This bill is an important first step toward correcting a serious legislative overreach and NTU applauds you for your concerted bipartisan effort to do so. NTU is pleased to endorse the “Renewable Fuel Standard Reform Act” and we urge all Representatives to co-sponsor this legislation and work towards its swift enactment.
Sincerely,
Nan Swift
Federal Affairs Manager