2011--Oklahoma Senator Tom Coburn's amendment to immediately repeal the
Volumetric Ethanol Excise Tax Credit was defeated 59-40 on the Senate floor
today. The amendment, which needed 60 votes to pass, failed on the Senate floor
with only 40 votes in favor, and 59 votes against. Kansas Senators Jerry Moran
and Pat Roberts both voted against the anti-ethanol amendment. Kansas Corn
Growers Association President Bob Timmons of Fredonia said the vote was
important to corn producers and the ethanol industry.
the efforts of Senator Roberts and Senator Moran, who voted against the Coburn
Amendment which would have pulled the rug out from under ethanol plants,"
Timmons said. "VEETC expires at the end of this year and work is already
underway to restructure it to be more responsive to the market, create more
market access for ethanol creating quite a savings in revenues."
Senator Moran is
a cosponsor of the Ethanol Reform and Deficit Recuction Act, introduced Monday
by Senators John Thune (R-SD) and Amy Klobuchar (D-MN). The
legislation, which is co-sponsored by a bipartisan group of 13 senators, would
transition the ethanol industry into a variable tax incentive and create
additional market access for ethanol by removing existing barriers of consumer
would implement a variable tax credit beginning July 1, with the rate to be
based on the price of oil, to expire at the end of 2014. The bill would extend
the alternative fuel station tax credit, which would allow for more consumer
freedom to purchase higher concentration of ethanol, and would extend the small
producer ethanol credit through 2014. Of the $2.5 billion in revenues this would
make available to the Federal Treasury, $1 billion would be earmarked for
"Ethanol in our
fuel stream represents a great savings to consumers. In fact the latest studies
show that ethanol reduced gas prices 89 cents per gallon in 2010," Timmons said.
"When you look at the high gas prices consumers are paying and our reliance on
foreign oil, we believe we should be encouraging, not discouraging, the
production and use of domestic energy. "
The Kansas Corn
Growers Association represents its dues-paying members in legislative and
regulatory issues. For more information, visit www.ksgrains.com.