"We appreciate 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 choice.

This legislation 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 deficit reduction.

"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.