Speaking in Illinois this week, President Obama said he wants to develop additional renewable fuel technologies. The Renewable Fuels Association says in order to responsibly remodel and expand America's renewable fuel house, we must first make sure the foundation is secure. That includes expanding the market for ethanol blends and aggressively implementing the Renewable Fuel Standard while simultaneously investing in new renewable fuel technology.
RFA agrees with President Obama that we need to make room for new ethanol and renewable fuel technologies by walking away from our addiction and continued subsidizing of oil. They say they look forward to continuing the very constructive relationship this industry has had with the Obama Administration to grow this industry and foster the kind of innovation needed to meet our country's energy needs."
According to RFA, without question, there would not be a market for the emerging renewable fuels President Obama discussed were it not for the success of the existing ethanol industry. At 10% of the nation's gasoline market, current domestic ethanol supplies are reducing our demand for imported oil, mitigating the environmental destruction caused by an overreliance on fossil fuels, and most importantly, creating hundreds of thousands of jobs that cannot be outsourced.
An issue raised at the President's event revolved around existing ethanol production and grain supplies. Put simply, the RFA says - the existing ethanol industry has not "diverted" grain away from other uses. Rather, annual grain supplies have grown large enough to satisfy increased demand from all end users. Moreover, any negligible increase in consumer food prices that might be attributable to ethanol is more than offset by ethanol's ability to substantially reduce the average American family's yearly gasoline bill.
On Monday, RFA President and CEO Bob Dinneen posted an open letter to President Obama on the RFA blog, The E-Xchange. That letter can be read here.