[Congressional Record Volume 157, Number 87 (Thursday, June 16, 2011)]
[Senate]
[Pages S3878-S3879]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                ETHANOL

  Mr. COONS. Mr. President, I rise today to speak to the proceedings 
that just occurred in this body with regard to ethanol and to talk 
about how I see them from the perspective of my home State of Delaware.
  Today, the Senate agreed on a path forward to end Federal subsidies 
for corn-based ethanol. As Senators, we are often asked to make tough 
choices, and the bipartisan votes on today's amendments were largely a 
reflection of where we are from.
  For Delaware, agriculture is the single largest part of our economy. 
We grow a lot of corn, we grow a lot of soybeans, we have companies 
investing in advanced biofuels, and we have a major poultry industry. 
Today, I voted for Delaware's poultry growers and for our consumers. 
Lots of folks across this country in the last few years have lost their 
jobs, lost their homes, and lost their livelihoods. It is very 
important to me that the people of Delaware know, on the record, that 
the vote I cast today to end Federal subsidies for ethanol was about 
making sure we are supporting our home State poultry industry.
  My main concerns are that one of the most important economic 
engines--not just in Delaware but in the whole Delmarva Peninsula--is 
the poultry industry. That industry has its back against the wall and 
is struggling to survive. At a time when many other agricultural 
industries are seeing record prices--and that is a positive, a boon for 
them--for the poultry industry, the rising cost of feed is forcing 
decades-old companies to rethink their business models or, sadly, as in 
one case just last week for one of the most important and vital poultry 
companies in Delaware, to shut their doors and go into bankruptcy.
  We need to move away from corn-based ethanol and toward homegrown 
advanced biofuels if we are going to accomplish three goals at the same 
time. One is to reduce our deficit, to end unwise and unnecessary 
Federal spending; second is to support and advance and defend our 
poultry industry, whether in Delmarva or throughout the rest of the 
country; and third is to continue to make progress toward the future of 
clean, promising biofuels that are not from grain.
  The amendment I just voted for closes the door on corn-based ethanol, 
but that should not prevent us from finding a path forward to advanced 
biofuels, those not from grain, whether cellulosic ethanol or drop-in 
biofuels from algae or otherwise.
  Today, I also filed an amendment with Senator Carper, the senior 
Senator from Delaware, that makes it clear that as we close the door on 
corn-based ethanol, we need to do two other things going forward: 
first, use those billions of dollars in savings to reduce the deficit 
and, second, redirect funds, formerly committed to VEETC, to support an 
important but just beginning, a nascent advanced biofuels industry.

[[Page S3879]]

  Ultimately, the policies we pursue should lead to American consumers, 
producers, and farmers using less petroleum and, more importantly, 
using less oil from overseas sources. If we are going to reduce our 
dependence on fossil fuels and especially on those we import from 
overseas, we are going to need to continue to pursue a range of cleaner 
and more secure sources of energy. Advanced biofuels are central to 
this effort. Now that we have taken the important first step by 
adopting the Feinstein-Coburn amendment and signaling the intent of 
this body to end Federal subsidies to corn-based ethanol, I hope we 
will also responsibly pay down our Federal deficit and continue a 
strong path forward toward the advanced biofuels that Delawareans are 
making a significant contribution toward making a reality.
  As my colleague from California has noted, corn-based ethanol has 
historically been supported by three policies: the volumetric ethanol 
excise tax credit, known as VEETC, which provides a 45 cent per gallon 
tax credit to gasoline suppliers who blend ethanol with gasoline; a 
tariff of 54 cents per gallon on imported ethanol, which is largely 
targeted at sugarcane ethanol from Brazil; and a requirement that 
mandates the use of ethanol in gasoline by set amounts every year, 
increasing to 36 billion gallons by 2022.
  VEETC and the import tariff may have been needed in the past to stand 
up the nascent corn-based ethanol industry, but experts agree that the 
industry has matured, and these two supports are no longer needed.
  At a time when our federal government is facing a massive deficit and 
spiraling debt, we need to take a hard look at how we spend our 
taxpayer dollars. These subsidies are expensive, and studies have shown 
them to have dramatic impacts on our federal budget as well as on the 
cost of corn feed used by chicken farmers, including those in Delaware. 
This year alone, VEETC will cost taxpayers $6 billion. We just can't 
afford to maintain this duplicative and wasteful subsidy.
  Delaware's chicken farmers can't afford it either. Most economists 
and market analysts agree that the steady growth in ethanol demand has 
had a dramatic effect on the price of corn. This cost has trickled down 
to related agricultural markets, including food, feed, fuel, and land. 
The average annual price of corn has jumped 225 percent just in the 
past 5 years. Last week, corn futures reached nearly $8 a bushel, which 
is 140 percent over last year.
  The No. 1 cost for chicken farmers is feed, and farmers in Delaware 
are feeling the pinch. One major poultry company declared bankruptcy 
last week, and it cited the high cost of corn feed as a major factor. 
Couple this with rising energy costs, trade barriers, and low chicken 
prices, and you can see why many poultry companies are nearing a 
breaking point.
  Something must be done. The VEETC credit and the tariff are no longer 
worth the investment. It is past time that we repeal these subsidies, 
and I was proud to vote for the Feinstein-Coburn amendment to do so.
  At the same time, let me be clear: the Feinstein-Coburn approach is 
only part of a larger effort. In addition to ending VEETC and the 
tariff, we must also do much more to promote investment in the 
research, development, and deployment of advanced biofuels, including 
cellulosic and drop-in biofuels. These will help us reduce our 
dependence on petroleum and encourage further innovation. We need to 
provide greater certainty to help launch a next-generation biofuels 
industry through the extension of tax credits and other federal 
programs for certain targeted advanced biofuels.
  Many concerns are raised because corn ethanol dominates the U.S. 
biofuels market. But what is our ultimate goal? Shouldn't it be about 
greater fuel efficiency and product diversity in our domestic 
transportation sector? First, that can be achieved through increased 
fuel economy standards. Second, it can also come from technological 
alternatives like electrification, natural gas and hydrogen fueled 
vehicles. Third--and most important for what we are debating here 
today--it will come from developing commercially viable, advanced 
biofuels.
  There are legitimate concerns about corn ethanol's economic and 
environmental impacts, but we should also not be cutting off our nose 
to spite our face. For this reason, I have filed an amendment that 
makes it clear that we should be redirecting the repeal of the VEETC to 
deficit reduction and the extension of advanced biofuels for 5 years to 
provide a long-term signal to this small but emerging industry.
  I want to be part of a solution that provides a strong, long-term 
future for our Nation's alternative fuels industry. I want to see 
domestically produced, next-generation feedstocks grow. This would be 
from cellulosic, biodiesel, and drop-in fuels like methanol and 
butanol. They could come from different feedstocks, such as recycled 
grease, wood, corn stover, switch grass, municipal waste, algae, and 
livestock manure. Right now there is little to no commercial 
production, but we need to support those efforts with new incentives 
for these fuels and bio-refineries. Most importantly, we need to work 
on bringing down the costs and expanding their markets.
  In Delaware, inventive companies are already hard at work researching 
cutting-edge biofuel systems, including ones that produce energy from 
soybeans and algae. One such company is Elcriton in Newark, which is 
producing drop-in fuels from duckweed, an aquatic plant that can be 
used to produce fuel. Another company headquartered in Delaware--
DuPont--working with partners around the country on both cellulosic and 
biobutanol technologies. None of these fuels compete with the price of 
livestock feed. I am proud of the biofuel innovation taking place in my 
State, and I want to replicate this model across the country.
  In addition, this growth of advanced biofuel innovation has the 
potential to lead to new economic opportunities not only for energy 
companies and consumers but also for Delaware chicken farmers. Today, 
of great concern to them is the price of corn on the input end of farm 
operations, but--hopefully, not too far down the road--a significant 
factor on their balance-books may soon be earnings from waste that can 
be sold for biofuels.
  Ultimately, the policies we pursue should lead to American consumers, 
producers, and farmers using less petroleum. If we are going to reduce 
our dependence on fossil fuels, particularly those imported from 
overseas, we are going to need to pursue a range of cleaner and more 
secure sources of energy. Advanced biofuels are central to this effort, 
and, now that we have taken the first step by adopting the Feinstein-
Coburn amendment, I hope the Senate will take the next step as well.
  Mr. President, I yield the floor, and I suggest the absence of a 
quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. HATCH. Mr. President, I ask that the order for the quorum call be 
rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

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