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ACE responds to Pawlenty’s remarks on ethanol incentives

A top official of the American Coalition for Ethanol (ACE)—Brian Jennings—says many ethanol supporters agree with Republican presidential candidate Tim Pawlenty’s comments on phasing out ethanol subsidies.

Speaking in Des Moines Monday, Pawlenty said the federal government can no longer afford federal energy subsidies and that they need to be phased out.

Jennings points out that the ethanol industry has already begun the process of policy reform.  He says it’s time for the oil industry to follow ethanol’s lead and give up its oil tax subsidies as well.

Meanwhile, Senator Chuck Grassley of Iowa says Pawlenty’s proposal is similar to his bill that would phase out the blenders credit.

“Diverting money from the blender’s credit to blender pumps, flex-fuel vehicles, pipelines and other things that disperse ethanol more freely-particularly E-85,” Grassley says.

Grassley’s bill proposes a gradual phase-out over five years.

“So we don’t have that sort of support, but we have a marketplace distribution system that will help us market ethanol to a greater extent,” he says.