Press Releases
| For Immediate Release: June 18, 2008 |
Contact: Austin Durrer 202-225-4376 |
Rep. Jim Moran (D-VA) Leads Bi-Partisan Call to Shift from Fuels that Rely on Food |
||
| Bi-partisan letter points out food price inflation a growing problem; calls on EPA to promote advanced cellulosic biofuels | ||
|
Washington, D.C., June 18th – Rep. Jim Moran (D-VA) along with Rep. Tom Davis (R-VA), Rep. James McGovern (D-MA) and Rep. Michael Castle (R-DE) sent a bipartisan letter, co-signed by 58 House Members, to the Administrator of the Environmental Protection Agency (EPA) calling for the promotion of advanced biofuels that do not contribute to food price inflation or create new environmental concerns. Commenting on the letter, Rep. Moran noted, “This year, the U.S. will divert nearly one-third of our total corn production to make ethanol. It’s contributing directly to record corn prices – spiking even higher this week due to the tragic flooding in Iowa. The unprecedented price of corn is having a ripple effect on food prices directly impacting consumers at the grocery store, not to mention the poor and starving in the third world. We call on the EPA to redouble its efforts to rapidly transition away from biofuels that draw down our food supply towards newer, more sustainable energy sources.” The letter comes as the EPA continues a reevaluation of the impact the Renewable Fuel Standard is having on the economy and environment. The letter notes that at present, food price inflation in the U.S. is rising at twice the overall rate of inflation, while global food prices have nearly doubled in the past three years. The bi-partisan group points out that there are several factors driving food costs up, emphasizing the importance of finding sources for biofuel production that “do not divert food and feed from domestic and international supplies.” Under existing policies, 30 to 35 percent of all U.S. corn will be diverted for ethanol production this year. Numerous economists, as well as the USDA, World Bank, UN and International Monetary Fund acknowledge that this policy is a factor behind higher food prices around the world. The Moran letter sent today states that the diversion of food for fuel production is contributing to higher food prices and will have a limited effect on decreasing U.S. gasoline consumption, displacing “…only 4 percent of America’s gasoline supplies this year.” Given the fact that diverting food for fuel production does not substantially reduce gasoline consumption, the letter’s 58 cosigners voiced their support for the development of cellulosic biofuels. The letter argues that these advanced fuels could “displace one-third or more of domestic gasoline supplies, could significantly reduce the price of gasoline and could reduce greenhouse gas emissions from fuels by 80 percent or more.” Member Quotes: “There are many reasons for the recent sharp increase in food prices, but our over-reliance on corn ethanol is one of the few that the U.S. government can help alleviate,” said Rep. Jim McGovern (D-MA), Co-Chair of the House Hunger Caucus. “We can’t make it rain more in Ukraine or Australia. We can’t make the Chinese or Indian economies grow more slowly. But we can begin to move federal support away from corn ethanol toward the next generation of biofuels.” Rep. Tom Davis (R-VA) was quoted saying, “Our current ethanol policies not only are rife with unintended consequences, and they have not helped ease our growing fuel demands. The transition to cellulosic ethanol is a common-sense, necessary step which must begin as soon as possible.” “As Congress looks for ways to alleviate the financial burden of skyrocketing gas prices, it may be tempting to concentrate on only short-term solutions. Our approach should be comprehensive and include the development of innovative, new biofuel technologies such as those made from wood and crop waste,” said Rep. Castle (R-DE). “Looking to a variety of solutions will help us to diversify our energy sources and develop more efficient, long-term energy solutions -- without compromising America's food supplies.” Moran reiterated, “Advanced cellulosic biofuels are a major, integral part of our energy strategy for the future. Given the impact on consumers from higher food prices, it is clear we delay bringing the next generation of biofuels online only to our serious detriment.” ******************************************************************************************************************** June 16, 2008 The Honorable Steve Johnson Dear Administrator Johnson: As you evaluate the impact of the renewable fuels standard on rising food prices, we are writing to encourage you to pursue advancing the development of cellulosic biofuels and other fuels that do not contribute to rising food prices and environmental concerns. As you know, domestic food prices are rising twice as fast as inflation and global food prices have nearly doubled in the last three years. There are many factors contributing to rising food prices, including growing global demand, the price of oil, import restrictions, poor weather and the recent acknowledgement that the biofuels mandate is also a factor. Therefore, we believe it is critical that the Administration and Congress work to accelerate the development of biofuels made from wood waste, crop waste, and other materials that do not divert food and feed from domestic and international supplies. We believe that with appropriate incentives and investment in research and development, cellulosic biofuels could be pursued without displacing food crops and without using marginal land. Cellulosic biofuel holds enormous promise. According to the USDA, 25 percent of America’s corn crop was diverted to produce ethanol in 2007 and 30 to 35 percent will be diverted in 2008. Nonetheless, fuels derived from corn and other food crops will displace only about 4 percent of America’s gasoline supplies this year. By contrast, cellulosic biofuel could displace one-third or more of domestic gasoline supplies, could significantly reduce the price of gasoline, and could reduce greenhouse gas emissions from fuels by 80 percent or more. As you evaluate the impact of the renewable fuels standard on rising food prices, we urge you to do so in a way that will accelerate the development of advanced biofuels. Sincerely, James P. Moran Tom Davis James McGovern Mike Castle Peter A. DeFazio
|