Coalition of 90 Organizations Opposes Subsidies for Corn Ethanol

October 24, 2012
Washington, D.C.

A coalition of 90 business associations, taxpayer advocates, hunger and development organizations, agricultural groups, free-market groups, religious organizations, environmental groups, budget hawks, and public interest organizations today sent a letter to Congressional leadership urging Congress to let the refundable Volumetric Ethanol Excise Tax Credit (VEETC) expire and to resist calls for spending on infrastructure for conventional biofuels.

In the letter, the coalition says:

“The undersigned diverse group of business associations, taxpayer advocates, hunger and development organizations, agricultural groups, free-market groups, religious organizations, environmental groups, budget hawks, and public interest organizations urge you to allow the refundable Volumetric Ethanol Excise Tax Credit (VEETC) to sunset this year and to resist calls for spending on infrastructure for conventional biofuels.

“In particular, Congress has the opportunity to end the $6 billion a year subsidy to gasoline refiners who blend corn ethanol into gasoline. At a time of spiraling deficits, we do not believe Congress should continue subsidizing gasoline refiners for something that they are already required to do by the Renewable Fuels Standard.

“Experts like the Congressional Budget Office and the Government Accountability Office have concluded that the subsidy is unnecessary, and leading economists agree that ending it would have little impact on ethanol production, prices or jobs.

“We urge you to let VEETC expire and resist calls for spending on infrastructure for conventional biofuels.”

The following organizations signed the coalition letter:

ActionAid US

Africa Action

Africa Faith and Justice

Alabama Poultry and Egg Association

Alliance of Western Milk Producers

American Bakers Association

American Conservative Union

American Frozen Food Institute

Americans for Limited Government

Americans for Prosperity

American Jewish World Service

American Meat Institute

Beyond Pesticides

California Dairies, Inc.

California Poultry Federation

California Safe Schools

Center for Auto Safety

Center for Biological Diversity

Center for Food Safety

Clean Air Task Force

Clean Water Action

Citizens for Tax Justice

Columban Center for Advocacy and Outreach

Competitive Enterprise Institute

Council for Citizens Against Government Waste

Dairy Producers of New Mexico

Dairy Producers of Utah

Environment America

Environmental Working Group

Foreign Policy in Focus

Freedom Action

FreedomWorks

Friends of the Earth

Heartland Institute

Georgia Poultry Federation

Greenpeace USA

Grocery Manufacturers Association

Idaho Dairymen’s Association

Indiana State Poultry Association

International Center for Technology Assessment

International Dairy Foods Association

John Locke Foundation

KyotoUSA

Leadership Conference of Women Religious

League of Conservation Voters

Marynoll Office of Global Concern

Milk Producers Council

Mississippi Poultry Association

MoveOn.org

National Audubon Society

National Catholic Rural Life Conference

National Council of Chain Restaurants

National Chicken Council

National Meat Association

National Restaurant Association

National Retail Federation

National Taxpayers Union

National Turkey Federation

National Wildlife Federation

Natural Resources Defense Council

NETWORK, A National Catholic Social Justice Lobby

North Carolina Poultry Federation

Northeast Organic Dairy Producers Alliance

Northeast Organic Farming Association -- Interstate Council (NOFA-IC)

Northwest Environmental Defense Center

Northwest Dairy Association

Oil Change International

Oxfam America