Today, the Government Accountability Office (GAO) released a compilation of critiques of America’s ethanol industry. Containing little in the way of new information or analyses, the report does nothing to address the issues facing America regarding its reliance on foreign oil. Specifically, the GAO suggests elimination of the tax incentive for ethanol, yet provides no comparison with the subsidies received by fossil fuel interests. According to the Environmental Law Institute, fossil fuel interests receive nearly three times the federal incentives provided to renewable energy industries.



Responding to the report, the Renewable Fuels Association issued the following statement:

“This amounts to little more than a book report, rehashing many of the criticisms that have been leveled at the ethanol industry from a variety of special interests without introducing any new information. As is the nature of reports such as these, they are out of date as soon as they are completed.

“America’s ethanol producers continue to innovate at an astounding rate. New technologies are improving overall efficiencies at existing facilities and making better use of natural resources. In just the past five years alone, ethanol producers have reduced water use and energy use by over 20% in both cases. Next generation technologies, such as conversion processes for cellulosic materials, are expanding the basket of feedstocks from which ethanol is made.

“Likewise, on-the-farm innovations are yielding more corn per acre while reducing inputs needed. This year is perfect evidence, with yields per acre expected to set records well above 160 bushels per acre. Seed technologies just on the horizon promise even great improvements. Farming practices, such as no till and GPS guidance, are reducing erosion and making more efficient use of fuel and fertilizer inputs.”

Responding directly to the charge that the tax incentive is no longer needed, the RFA stated:

“The tax incentive has been instrumental in helping to build a renewable fuels industry in this country. It should remain. As long as petroleum and fossil fuel companies that dominate the energy market continue to receive preferential tax treatment and hidden subsidies, incentives are needed to develop renewable alternatives such as ethanol.”



Footer

Contact:
Matt Hartwig
Communications Director
Renewable Fuels Association
(202) 289-3835
mhartwig@ethanolrfa.org

http://renewablefuelsassociation.cmail1.com