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Stark helps lead move against ethanol subsidies

Rep. Pete Stark, D-Fremont, helped spearhead a bipartisan letter sent today to House leaders urging them to let taxpayer-funded ethanol subsidies expire this year.

The letter was signed by 30 Democrats – including Stark, George Miller, Jackie Speier, Mike Honda and Zoe Lofgren – as well as by 37 Republicans, and was directed to House Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-San Francisco.

Here’s the text:

As the first session of the 112th Congress comes to a close, we urge you to allow ethanol subsidies set to expire to do just that and to resist calls to expand or create new ethanol subsidies in the eleventh hour.

The ethanol industry has benefited from a tax credit incentivizing production, an import tariff shielding it from competition, and a renewable fuels mandate creating demand. Both the volumetric ethanol excise tax credit and the prohibitive import tariff are set to expire at the end of this year. These benefits were not permanent in nature for a reason. Congress anticipated the ethanol industry one day being sufficiently mature to stand on its own. It is difficult to make the argument that this day has not arrived. With widespread concern across a spectrum of issues including anti-hunger, fiscal, environmental, agricultural, good governance, and others, extending a billion dollar ethanol tax credit would appear out of the question and the prohibitive import tariff should be allowed to expire as well.

In addition, we urge you to oppose efforts to create new or expand existing subsidies that benefit the ethanol industry in the waning days of this session. For example, there has been the suggestion that the renewable fuels standard be revised to allow corn-based fuels to qualify as an advanced biofuel. Taxpayers deserve to have the future of federal ethanol policy fully vetted under regular order, an opportunity that is unlikely in the last days of the session.

Josh Richman

Josh Richman covers state and national politics for the Bay Area News Group. A New York City native, he earned a bachelor’s degree in journalism from the University of Missouri and reported for the Express-Times of Easton, Pa. for five years before coming to the Oakland Tribune and ANG Newspapers in 1997. He is a frequent guest on KQED Channel 9’s “This Week in Northern California;” a proud father; an Eagle Scout; a somewhat skilled player of low-stakes poker; a rather good cook; a firm believer in the use of semicolons; and an unabashed political junkie who will never, EVER seek elected office.

  • RR, Senile Columnist

    Aren’t there any cornfields in his district?