(June 10, 2011)  Washington - The Renewable Fuels Association (RFA) is issuing a statement in advance of a potential cloture vote next week on an amendment to end the current ethanol tax credit on July 1, 2011.  The tax credit, known as VEETC, is already set to expire at the end of this year.  The RFA has been working in good faith with leaders in Congress to transition and transform ethanol tax policy to address budget concerns while providing for the continued growth and evolution of American ethanol production.  The amendment has been offered by Sen. Tom Coburn (R-OK), the recipient of some $250,000 in oil and gas industry donations since 2005 according to OpenSecrets.org , and is pending as part of the Economic Development Revitalization Act now before the Senate.

The RFA statement from President and CEO Bob Dinneen is as follows:

"This is the same kind of political gamesmanship that nations like Iran and Venezuela are exercising to keep consumer energy prices artificially high and Americans addicted to oil.  If this were truly about sound policy and concerns over energy tax subsidies, then this amendment would include efforts to repeal the billions of taxpayer dollars oil and other mature energy industries receive each year while posting tens of billions of dollars in profits quarterly.  As few observers give this bill any chance of getting to the president's desk, Sen. Coburn's efforts are yet another example of oil-patch politics trumping sound national energy policy.  We encourage Sen. Coburn to lay down his arms and work with the ethanol industry to craft thoughtful and fiscally responsible legislation that allows for continued innovation and growth of domestic biofuel production and use without pushing the industry off a cliff.

"Ethanol is the only alternative to imported oil available today and the only technology keeping money out of bank accounts in Caracas and Tehran. Pulling the rug out from under a still maturing industry would force consumers to pay more at the pump, do nothing to mitigate impacts of rising food prices resulting from exorbitant oil prices, and jeopardize the commercialization of promising new ethanol and biofuels technologies. This is an amendment meant with an eye toward reelection, not deficit reduction." 

A recent report from the Center for Agriculture and Rural Development found that ethanol reduced gas prices $0.89 per gallon in 2010.  If ethanol were not in the market, the report warned gas prices could spike by 92%.  In addition, the RFA has also noted the dangers playing politics brings with regard to the nation's energy and economic future - both on Capitol Hill and within the OPEC oil cartel.