Farm and Ranch July 27, 2010 Growth Energy, an organization that supports biofuels, is proposing a fundamental shift in federal ethanol policy. Growth Energy CEO Tom Buis says increased market access is the ethanol industries most pressing need and he says Congress should shift a portion of the federal funding currently used to incentivize production of grain based ethanol toward demand building infrastructure.

Buis: “Our plan calls for the redirection and eventual phasing out of government support. Mandatory flex-fuel vehicle production and tax incentives for retail fueling stations to install blender pumps. We also want to see government programs to help assist with loan guarantees to build dedicated pipelines to the coast. That reduces the cost to the consumer.”

Buis indicated that Growth Energy backs a five-year phase out of government support for ethanol in return for a level playing field. The National Farmers Union immediately endorsed Growth Energy’s approach but other major farm groups and ethanol trade associations, including the Renewable Fuels Association and the National Corn Growers Association reaffirmed their support for a long term extension of the industry’s current mix of subsidies and tax breaks that are set to expire in December.

Renewable Fuels Association President Bob Dinneen says now is not the time to add uncertainty and complexity to the energy tax debate.