Rep. Bob Goodlatte (R-Va.) said in a recent Ripon Forum editorial that his bill to eliminate the Renewable Fuel Standard would allow free markets to compete fairly and fulfill demands for corn supplies.
Goodlatte serves as the chairman of the House Judiciary Committee and is a member of the House Agriculture Committee. He introduced the Renewable Fuel Standard Elimination Act in April that is awaiting consideration before the House Subcommittee on Energy and Power.
The RFS mandates that the United States have 36 billion gallons of renewable fuels by 2022. The mandate was nearly entirely fulfilled by 2012 and at least 40 percent of U.S. corn crops were being used for ethanol production last year.
The Renewable Fuel Standard, according to Goodlatte, was created under good intentions, however, it resulted in several unintended consequences. The most significant consequence, Goodlatte said, is the sharp increase in the price of corn partially due to increased food and feed stocks as they are diverted to ethanol production.
“To put it into perspective, in 2005 corn prices were around $2 a bushel,” Goodlatte said. “In 2013, prices have been as high as $7 a bushel; however, last summer we saw prices exceed $8 a bushel.”
Goodlatte said the RFS also pushes farmers to set aside more land for corn production that results in an increase in price for other agriculture commodities.
In addition to the economic impact, Goodlatte cited reports that revealed the use of higher ethanol blends in gasoline result in engine damage.
“The RFS debate is no longer just a debate about fuel or food,” Goodlatte said. “As we see the costs of this mandate continue to rise, it has also become a debate about jobs, small businesses and economic growth.”
The Renewable Fuel Standard Elimination Act would cut the ethanol mandate and help ensure the United States has enough corn supplies to meet all demands, according the Goodlatte.
Fifty-five members of the House have added their names to the bill, including Reps. Shelley Moore Capito (R-W.Va.), Charlie Dent (R-Pa.), Tim Griffin (R-Ark.), Richard Hanna (R-N.Y.), Steve Scalise (R-La.) and Randy Neugebauer (R-Texas).