AMI Supports Legislation That Would Reduce RFS Based on Corn SupplyWednesday, October 5, 2011
WASHINGTON, D.C. – The American Meat Institute (AMI) applauded the latest effort in Congress to establish a more balanced federal energy policy that does not pit food, feed and fuel needs against each other.
Representatives Bob Goodlatte (R-VA) and Jim Costa (D-CA) today introduced the Renewable Fuels Standard (RFS) Flexibility Act, which would set up a process that would require the Administrator of the Environmental Protection Agency (EPA) to review twice a year (December and June) USDA reports on corn supplies based upon the ratio of corn stocks-to expected use in making a determination on the mandated level of corn ethanol production through the RFS for the coming calendar year.
Under the legislation, a stock-to-use ratio above 10 percent would result in no reduction to the RFS; a stock-to-use ratio of 10 to 7.50 percent would result in a 10 percent reduction; a ratio of 7.49 to 6 percent would result in a 15 percent reduction; a 5.99 to 5 percent ratio would result in a 25 percent reduction; and a ratio below 5 percent would result in a 50 percent reduction.
Said AMI President and CEO J. Patrick Boyle:
“AMI applauds Representatives Goodlatte and Costa for their bipartisan leadership on this important bill that would allow the marketplace to work through short crop years without a federal mandate dictating how the corn supply is used.
“During these difficult economic times, federal ethanol policies should no longer pick winners and losers but allow the livestock and poultry sectors to compete with the ethanol industry on a level playing field for a corn supply that is already stretched thin, and at record prices. A more reasonable approach to the production of biofuels in this country is needed, and the RFS Flexibility Act is a step in the right direction that will afford some relief to our livestock and poultry producers, food processors and ultimately, American consumers who are struggling with rising food prices due in part to our federal ethanol policies.”
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