Passage of Energy Bill in Senate Lauded by National Corn Growers Association

On Friday, the The National Corn Growers Association (NCGA) announced that the association applauds the Senate for passing comprehensive energy legislation with the inclusion of a renewable fuel standard (RFS) of 15 billion gallons for corn ethanol.

The bipartisan bill passed 86-8 with six abstaining.

"This legislation guarantees a robust future market for corn...This bill creates a solid foundation for grain-derived ethanol to continue to grow. Our nation's corn growers are committed to producing a supply to meet America's food and fuel needs," said NCGA President Ron Litterer.

The RFS for corn-derived ethanol is part of a larger standard of 36 billion gallons for all renewable fuels.

Congress has been drafting new energy legislation since the summer. The Democrats had wanted to include two provisions, including one repealing a tax break on major oil and gas companies, that the Republicans and the White House made clear they would not accept. With the removal of those provisions the Republicans in Congress became pleased with the bill and the Bush Administration has said that the President will sign it into law.

However, critics of the energy bill are outraged at the promotion of ethanol and at the costly interference with the free market with regards to makers of automobiles, which they say already includes cars that can get 35 mpg and even better and are researching ways to manufacture cars that can get up to 100 mpg on their own initiative.

They say that Congress and their special interest ethanol lobbyists have used duplicity to trick the American public into believing in big oil corporations price gouging and price fixing, when no such thing occurs. What's more, they are very concerned about the fact that increased ethanol production has already been substantially driving up the price of corn and will only do more of the same, with the chain reaction of driving up the prices of the large array of other foods that rely on corn to be made. On top of all that, they say, is the fact that the amount of fuel that Congress wants corn ethanol to comprise is scientifically implausible.
Economists have criticized the Congress for dubious claims regarding ethanol, saying that it costs more per barrel than oil and will unduly tax the food supply, driving up prices at the grocery store as well. If ethanol really were going to be more cost-efficient, they point out, then corn growers should not need any subsidies, since the lower production costs would pay for themselves.

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