Washington – The apparent failure of the so-called supercommittee to find the required $1.2 trillion in budget savings is not coming as a surprise to many inside the Beltway.  The failure to produce legislation, however, does raise questions about what bills Congress will consider in the final weeks of the year.  Specifically, speculation is swirling about possible bills to extend expiring tax provisions including those for ethanol blending.

Responding to the supercommittee failure and the uncertainty left in its wake, the Renewable Fuels Association issued the following statement:

“The supercommittee’s success or failure has little bearing on American ethanol production.  When the forward-looking compromise on ethanol tax incentives reached this summer by Senators Thune and Klobuchar was no longer a viable option, lawmakers and the ethanol industry alike moved forward with the understanding that the existing blenders’ credit and secondary tariff on imported ethanol would expire at the end of the year.  That continues to be the case today.  The RFA will continue to seek opportunities to accelerate the commercialization of cellulosic and advanced ethanol production and modernize America’s fueling infrastructure through the installation of blender pumps and other alternative fuel infrastructure.

“Unfortunately, the supercommittee’s failure to move forward on budget-balancing policies likely means that American taxpayers will continue to subsidize very mature oil and fossil fuel technologies to the tune of billions of dollars a year.  Only when a truly level playing field in energy exists can the full economic, environmental and energy security benefits of ethanol and renewable fuels be fully realized.”