Boren, Womack Lead House Effort to Repeal Ethanol Subsidy

Press Release

-- Congressmen Dan Boren (D-OK) and Steve Womack (R-AR) have joined together to introduce legislation to repeal the Volumetric Ethanol Excise Tax Credit (VEETC). As a direct result of this tax credit, the use of corn for ethanol has more than doubled--driving up the cost of feed for farmers and food for consumers. Corn prices at this level are detrimental to businesses, producers, and consumers.

Both Congressmen also believe that ethanol has clearly underperformed as the alternative fuel source it was hyped to be. Ethanol is one-third less efficient than regular grade fuel. This bipartisan legislation demonstrates the importance of repealing the VEETC and passing H.R. 1075.

"It's an honor to join Representative Womack on legislation to repeal this deficit producing subsidy that costs approximately $6 billion annually. As a fuel source, ethanol does not produce the type of fuel mileage that traditional gas does, thus driving up actual fuel use in the long term. Furthermore, in the four decades that the federal government has supported ethanol, we have seen very little improvement in energy security, efficiency, or environmental impact," said Boren. "While Congress examines ways to trim the budget and reduce our long term deficit, the VEETC is a prime example of a budget busting provision that offers few positives to hard working taxpayers. The bottom-line is that our constituents don't want it in their gas, they don't want it in their cars, and I definitely don't want it in my truck."

"I am pleased to work with Representative Boren in repealing this burdensome tax credit subsidy and I believe our country benefits greatly when we work together," said Womack. "Though I believe exploring alternative resources are a must, driving up the cost of feed corn is crippling farmers and consumers alike in Arkansas, Oklahoma and across the country."

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