NCGA, NCBA At Odds Over Bill To Expand RFS
US - The Senate Energy and Natural Resources Committee approved a bill last week that would increase the Renewable Fuels Standard (RFS) to 36 billion gallons by 2022 and require that 15 billion gallons of that total come from corn-based ethanol.
9 May 2007
2 minute read
Senators moved the bill out of committee by an overwhelming vote of 20 to 3. But the nation's largest cattle and corn groups disagree sharply over the wisdom or necessity of doubling the RFS for corn-based ethanol from its current target of 7.5 billion gallons.
Committee approval of the measure last week drew cheers from the National Corn Growers Association (NCGA). NCGA President Ken McCauley told Brownfield the bill is a mirror image of his group's strategic vision.
"It actually spells out our policy - 15 billion gallons of ethanol by 2015," McCauley said.
But Jason Jordan, Manager of Legislative Affairs for the National Cattlemen’s Beef Association (NCBA), told Brownfield on Monday that NCBA is strongly opposed to the measure. Indeed, Jordan said NCBA is wasting no time in aggressively lobbying against it.
"We have been actively communicating with those folks on the Hill to express the concerns that beef producers have, the ramifications that would come from legislation like that," said Jordan.
According to Jordan, NCBA wants ethanol and corn markets to operate without government interference. And he said a 15 billion gallon RFS for corn-based ethanol would make that impossible.
"Producers should have the opportunity to compete on a level playing field with ethanol facilities for each bushel of corn," Jordan emphasized. "And this legislation simply distorts those supply and demand signals."
Jordon insisted that NCBA doesn't oppose agriculture's role in renewable fuels. But he said NCBA does oppose government policies that favor one feedstock over another.
"We need to step back and look for some balance in the policy here," Jordan said, "and not be favoring a policy, and again, creating a permanent mandate for the feedstock that may not be the ultimate solution here."
