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Sharply rising food prices may force Congress to reconsider the fivefold increase in ethanol production it mandated just four months ago, some lawmakers say.
Few members appear willing to call for the outright repeal of the Renewable Fuels Standard (RFS), which requires that 36 billion gallons of ethanol be produced by 2022. Of that, 15 billon gallons would come from corn. But the new concerns represent a significant turn for a policy issue that was embraced by both congressional Democrats and President Bush as a way to boost rural economies and domestic energy security.
“We certainly did not anticipate what’s happened, if that was the cause,” said Sen. Pete Domenici (R-N.M.), ranking member of the Energy and Natural Resources Committee.
“We don’t know how much of the food crisis was caused by it, but nobody expected it to cause much.”
Committee Chairman Jeff Bingaman (D-N.M.) added: “I think it’s something we need to look at.”
When asked if he would be willing to change the mandate if it is found to have driven up food prices, Bingaman said: “Depending on what was concluded, I’m open to anything. But at this point, I don’t think we have good information as to the extent to which that is a factor.”
Senate Majority Whip Dick Durbin (D-Ill.), an ethanol supporter, also opened the possibility of revising the current ethanol policies.
“I supported ethanol from the beginning, and still believe in it. I believe biofuels have a great future,” Durbin said, “but we have to look at it honestly. What is the current impact and what do we have to do, if anything, to address any changes?”
Stoking the second thoughts is a loose collection of oil companies, livestock producers and grocers that tried unsuccessfully last year to block the RFS.
Oil companies don’t like the mandate because they say there is insufficient infrastructure to handle the big increase in ethanol. Livestock producers oppose the mandate because it has raised the price of the corn that they buy to feed cattle and hogs.
Grocers blame the mandate for rising food costs.
Scott Faber, vice president for federal affairs at the Grocery Manufacturers Association (GMA), compared lawmakers to late-night revelers who are just beginning to understand the consequences of their actions.
“A lot of lawmakers are wondering who the hell they woke up with,” Faber said.
Ethanol producers and farm groups representing corn growers strongly reject the suggestion that the RFS is a significant factor in the increase in global commodity prices.
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