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EPW FACT OF THE DAY: NO ETHANOL “CEILING”
December 11, 2007

Posted by Matthew_Dempsey@epw.senate.gov 

One United States Senator, in making his case for an increased ethanol mandate on the floor of the United States Senate yesterday, argued that that the ethanol mandate signed into law in 2005 created a “ceiling” and that the industry is now bumping up against that ceiling.

FACT: No such ceiling exists. Rather, as Senator Harkin (D-IA) noted during Senate consideration in 2005, the Senate established a “strong floor.” Senator Harkin stated:

“So what we are doing makes sense. With an 8-billion-gallon renewable fuels standard, we establish a strong floor for the time frame under consideration. The fact is, we will have no trouble whatsoever producing enough ethanol to meet this standard. As I said, the industry already has the capacity to produce nearly 4 billion gallons of ethanol a year.”

In the 109th Congress, Senator Inhofe, then-chairman of the Senate Environment and Public Works Committee, successfully worked with his colleagues to create a comprehensive program to increase the use of renewable fuels in the United States in a measured way that makes economic sense. The Reliable Fuels Act, ultimately incorporated into the Energy Policy Act of 2005, encourages the production and use of bio-fuels. Today, some in Congress argue in favor of increasing the RFS, but Senator Inhofe and many others believe we should maintain the current standard and take a closer look at the impact on related industries. Growing bodies of interested parties are speaking out against increasing the corn ethanol mandate, ranging from a coalition of groups including Coke, Pepsi, the National Pork Producers Council, and Turkey Federation to Ducks Unlimited. We should take the time to hear them out.

RELATED LINKS

Bi-Partisan Letter Urges President To Consider Health And Safety Issues That Could Result From Increased Use Of Ethanol As “General Purpose” Transportation Fuel (Blog From Friday, December 7, 2007)

In Case You Missed It: "Ethanol's Water Shortage," The Wall Street Journal (October 17, 2007)

Top Ten Democrat Energy Bill Failures (Press Release From Thursday, June 28, 2007)

America’s Energy Future Needs To Be Stable, Diverse And Affordable (Senator Inhofe, The Hill, June 27, 2007) Inhofe: Senate Passed Energy Bill Will Increase Costs To Consumers (Press Release From Friday, June 22, 2007)

Daily Oklahoman: Lacking Energy: Democrats' Bill Doesn't Address Needs (Editorial, June 19, 2007)

 In Case You Missed It...Ethanol's Bitter Taste (Kimberley Strassel, Wall Street Journal, May 18, 2007)  

Inhofe Statement On President’s Executive Order On Cafe And Alternative Fuels  (Press Release From Monday, May 14, 2007) 





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