Welch Announces Bipartisan Bill to Reform Federal Ethanol Mandate

Press Release

At a small engine repair shop in Colchester this morning, Congressman Peter Welch announced bipartisan legislation to reform the federal ethanol mandate. Joined by Vermonters directly impacted by the mandate, Welch highlighted the harmful impacts of a federal ethanol production mandate on farmers, consumers, and sportsmen.

"While well intentioned, the mandate on production of corn-based ethanol is harming already struggling dairy farmers with record high feed prices. It's driving up food prices. And it's ruining the engines of boats, chainsaws and snowmobiles across Vermont. We're making long overdue progress on ending ethanol subsidies. This bipartisan legislation will remove another key underpinning of unnecessary taxpayer subsidies for the ethanol industry."

Congressman Welch has joined with Rep. Goodlatte (R-VA), Rep. Womack (R-AR) and Rep. Costa (D-CA) in introducing legislation that would repeal the mandate on corn ethanol production. It would also prevent the federal government from increasing the requirement on the amount of ethanol blended into gasoline. The current ethanol blended fuel requirement is 10 percent (E10). The Environmental Protection Agency has signaled its intent to increase this requirement to 15 percent (E15).

The ethanol industry has historically received three forms of subsidy from the taxpayer: federal tax credits, favorable tariffs, and the production mandate. Congressman Welch is a leader in the House of the effort to repeal all ethanol subsidies. Federal tax subsidies and tariffs supporting corn ethanol production expired at the end of 2011. The bipartisan bill announced today would address the remaining subsidy.

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