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Ethanol and agricultural groups send USDA a letter in favor of ethanol funding

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Courtesy of Bergeson & Campbell, P.C.

On March 26, 2015, a group of ethanol and agricultural groups sent a letter (the industry letter) to the U.S. House of Representatives Appropriations Committee's Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies to express their strong opposition to including certain language harmful to the ethanol industry in the Fiscal Year 2016 Agriculture, Rural Development, U.S. Food and Drug Administration (FDA) and Related Programs Appropriations bill. According to the industry letter, the language would prohibit the use of U.S. Department of Agriculture (USDA) funds for the installation of ethanol blender pumps and efforts to promote ethanol exports from the U.S.

The letter, signed by the Renewable Fuels Association, American Coalition for Ethanol, Growth Energy, National Farmers Union, and National Corn Growers Association, was in response to a letter written by 16 members of Congress requesting that language be added to prevent funding from being used for USDA blender pump programs or the promotion of U.S. ethanol exports. The industry letter points out that the Farm Bill already prohibits USDA from being used to install blender pumps through the Rural Energy for America Program (REAP), and that exporting excess ethanol provides a valuable market as U.S. gasoline stations slowly start to offer E15 and E85.

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