DeMint, 23 Senators Call for EPA Review of Ethanol Mandates

Press Release

DeMint, 23 Senators Call for EPA Review of Ethanol Mandates

U.S. Senator Jim DeMint (R-South Carolina), a member of the U.S. Senate Committee on Energy and Natural Resources, joined 23 senators to send a letter to the U.S. Environmental Protection Agency (EPA) that urged the agency to review federally subsidized ethanol mandates that have contributed to rising food prices. The EPA has the authority to amend or completely waive the mandates.

"Ethanol is a perfect example of the broken system in Washington, and families in America and all over the world are paying for Congress' rush to judgment," said Senator DeMint. "As usual, when politicians hastily 'do something' rather than take the time to do what's right, unintended consequences occur. Federal mandates to burn food for fuel has disrupted the entire agriculture market, making it more expensive to feed animals, and causing more farmers to abandon other crops to grow corn."

"Food prices were declining for 30 years thanks to the hard work and innovation of American farmers. But since Congress began meddling with ethanol in 2005, the price of milk, eggs, bread, meat and vegetables has been rising fast. This not only hurts American families, but it has contributed to a global food crisis that has harmed efforts to feed the world's hungry. EPA officials should review the situation immediately and I will continue to fight in the Senate for commonsense energy policy."

As reported by Reuters in April, "The increased use of grains to produce biofuels, at first heralded as a way to cut greenhouse gases, combined with increased demand for food in burgeoning emerging market economies, is contributing to grain shortages, rising prices, bread lines, and food riots around the globe." Not only have the ethanol mandates increased the cost of food, but they have been linked to an increase in gas prices, studies have shown they can be equally or more polluting than gasoline, and other studies show they could pose serious health risks.

The letter to the EPA was signed by Senators Wayne Allard (R-Colorado), John Barrasso (R-Wyoming), Robert Bennett (R-Utah), Richard Burr (R-North Carolina), Susan Collins (R-Maine), Bob Corker (R-Tennessee), John Cornyn (R-Texas), Mike Crapo (R-Idaho), Jim DeMint (R-South Carolina), Elizabeth Dole (R-North Carolina), John Ensign (R-Nevada), Mike Enzi (R-Wyoming), Lindsey Graham (R-South Carolina), Orrin Hatch (R-Utah), Kay Bailey Hutchison (R-Texas), James Inhofe (R-Oklahoma), Johnny Isakson (R-Georgia), John McCain (R-Arizona), Lisa Murkowski (R-Arkansas), Richard Shelby (R-Alabama), Ted Stevens (R-Alaska), John Sununu (R-New Hampshire), David Vitter (R-Louisiana), and Roger Wicker (R-Mississippi).

TEXT OF LETTER

The Honorable Stephen Johnson
Administrator
United States Environmental Protection Agency
1200 Pennsylvania Avenue, N.W.
Washington, DC 20460

Dear Administrator Johnson:

We are writing to convey the frustrations of consumers and animal agriculture producers about the consequences of food-to-fuel mandates that the U.S. Environmental Protection Agency (EPA) is currently implementing and to inquire about the pending rule-making process for the Energy Independence and Security Act of 2007 (EISA).

EISA essentially requires fuel marketers to blend 15 billion gallons of corn ethanol and directs 1 billion gallons of bio-diesel into the nation's fuel supplies by 2015. To meet this requirement, a substantial volume of our corn crop and our vegetable oils will have to be diverted into our fuel supplies, severely impacting food and feed prices. Congress gave the EPA authority to waive all or portions of these mandates, as well as rule-making authority to structure the mandates for the benefit of all Americans. We believe the EPA should begin the process of examining alternatives to ease the severe economic and emerging environmental consequences that are developing in America as a result of the mandate.

We are very concerned that food-to-fuel mandates and subsidies have contributed to higher domestic and global food prices. According to the USDA, 25 percent of America's corn crop was diverted to produce ethanol in 2007, and 30 to 35 percent of our corn will be diverted in 2008. This problem will only be compounded as we move towards 2015 with ever increasing mandates. Further, farmers could supplant other grains with corn, thereby decreasing supply and increasing prices of numerous agriculture products. Although many factors may contribute to high food costs, food-to-fuel mandates are the only factors that can be reconsidered in light of changing circumstances.

American families are feeling the financial strain of these food-to-fuel mandates in the grocery aisle and are growing concerned about the emerging environmental concerns of growing corn-based ethanol. It is essential for the EPA to respond quickly to the consequences of these mandates. Congress made the mandates in the EISA different from existing mandates to provide flexibility and to encourage innovation in advanced and cellulosic fuels. We believe today's circumstances merit the use of this flexibility.

The Bureau of Labor Statistics reports that food inflation is rising by 4.9 percent and other studies predict that food inflation could increase by 7 to 8 percent in the next few years. We are concerned that inflationary pressure on food will only escalate in the coming months and could be further complicated by severe weather. We urge you to take the foregoing into consideration as part of your current rule-making process and ask that you provide us with a status report at your earliest convenience.

Source