Senators Introduce Legislation To Eliminate Corn Ethanol Mandate

On December 12, 2013, Senators Dianne Feinstein (D-CA) and Tom Coburn (R-OK) introduced the Corn Ethanol Mandate Elimination Act of 2013, which would eliminate the corn ethanol gallon requirements under the federal RFS, while leaving in place those under the law for cellulosic and advanced biofuels and biodiesel. The sponsors have argued that the RFS corn ethanol mandate, which increases to 15 billion gallons per year by 2022, should be removed to combat the recent increase in corn prices. The bill currently has eight bi-partisan co-sponsors, including Senators Richard Burr (R-NC), Susan Collins (R-ME), Bob Corker (R-TN), Kay Hagan (D-NC), Jeff Flake (R-AZ), Joe Manchin (D-WV), Jim Risch (R-ID), and Patrick Toomey (R-PA).

The corn ethanol industry has argued that the RFS has had negligible impact on corn supply and prices, and that recent increases in the price of corn are attributed to the corresponding increase in the cost of energy used to make and transport the commodity.