A4O-Lancaster Farming, Saturday, May 17, 2003
NCGA Hails Progress Toward
Renewable Fuels Standard
WASHINGTON, D.C. The
National Corn Growers Associa
tion (NCGA) moved two steps
closer to attaining a renewable
fuels standard (RFS) recently
when the House and Senate took
major action on related bills.
In a 32-14 vote April 3, the
House Energy and Commerce
Committee approved an energy
bill that includes an RFS.
Additionally, the Senate Fi
nance Committee passed an en
ergy tax incentive bill that
promotes the use of ethanol with
its inclusion of the Highway
Trust Fund (HTF) fix and the
Small Producer Tax Credit up
grade. Both achievements are
being hailed a victory by the
NCGA.
Under the House bill, the cur
rent oxygenate standard for re
formulated gasoline would be re
moved, air quality and anti
backsliding provisions would be
enhanced and an RFS reaching S
billion gallons in 2015 would be
established. The committee de
feated several amendments that
sought to eliminate or modify the
fuels section. For example, an
amendment by Rep. Rick Bouch
er (D-Va.) to eliminate the RFS
was soundly defeated 34-14.
“While there are some aspects
NCGA would like to see im
proved in the House energy bill to
reflect the rapid growth of the
ethanol industry, mainly the RFS
schedule, this was a positive step
forward,” said NCGA President
Fred Yoder. “The House Energy
Committee should be commend
ed for its action, but the work is
not done yet. We have a long way
to go in this important process.”
Yoder noted the House last
year did not include an RFS in its
energy bill. “It is a huge step for
growers to have an RES reported
out of committee yesterday in the
House energy bill,” said Yoder.
The Senate success is also im
portant for growers. The biparti
san supported tax incentive legis
lation corrects the gap in the
ethanol excise tax exemption so
that ethanol and gasoline make
the same contribution to the
HTF. Within the current gasoline
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excise tax, 18.4 cents is paid into
the general fund (GF) for gaso
line. For ethanol, only 13.2 cents
is paid into the GF. The 5.2 cents
deduction is the ethanol excise
tax exemption.
More specifically, refiners and
gasoline marketers using 10 per
cent ethanol blends receive a
5.2-cents-per-gallon reduction
from the tax paid on straight gas
oline. Since federal motor fuel
taxes are a primary source of
funding for highway programs,
the issue has arisen as to the rev
enue impact of ethanol-blended
fuels on the HTF. The Senate Fi
nance Committee fixed this gap
yesterday.
The Senate package also in
cludes modifications to the small
ethanol producer tax credit by al
locating the 10-cents-per-gallon
production income alcohol fuels
credit to the members of a farmer
cooperative (this credit is in addi
tion to the S3-cents-per-gallon
tax incentive generally available
for ethanol). It also changes the
definition of a “small ethanol
producer” from 30 million gal
lons per year to 60 million gallons
per year.
“Getting both of these bills
passed out
of commit-
tee was a
huge under-
taking,”
continued
Yoder
“Many peo-
ple don’t re
alize how
complex the
process is
with several
committees
in each
chamber
working on
related pro-
visions.
Dairy Farmers Lobby Congress On MPC
WASHINGTON, D.C.
About 60 dairy farmers from
across the country spent three
days recently working with law
makers to close trade loopholes
allowing imported milk protein
concentrate (MPC) and casein to
flood domestic markets.
“Imported MPC and casein
are displacing our domestic dairy
supply at a time when U.S. dairy
farmers are getting the lowest
prices for their products since
1979,” said NFU President Dave
Frederickson. “While some im-
USD A Amends Central Milk Marketing Order
WASHINGTON, D.C.—
Earlier this year, the USD A is
sued an interim order amending
the pooling provisions of the
Central milk marketing order.
The tentative final decision for
the Central order, issued Nov. 8,
2002, was approved by dairy
farmers.
This interim order amends
pooling standards to prevent the
inappropriate pooling of milk on
the Central order. The approved
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ported powdered milk products
are subject to tariff-rate quotas,
MPC and casein are not. This
loophole must be closed.”
The farmers visited more than
160 congressional offices advo
cating the Milk Import Tariff Eq
uity Act, S. 560 and H.R. 1160,
which Frederickson said would
“level the playing field” by limit
ing MPC and casein imports by
imposing effective tariffs. The
legislation is sponsored by Sens.
Larry Craig, R-Idaho, and Mark
Dayton, D-Min., in the Senate
amendments eliminate the ability
to simultaneously pool milk on
the Central milk order and on a
state-operated order that has
marketwide pooling. The interim
order also will establish lower but
year-round supply plant per
formance standards; not consider
the volume of milk shipments to
distributing plants regulated by
another Federal milk order as a
qualifying shipment on the Cen
tral order; exclude from receipts
diverted milk made by a pool
Just Got Better.
and Reps. Don Sherwood, R-Pa.,
and David Obey, D-Wis., in the
House.
Sens. Craig and Dayton and
Rep. Sherwood participated in a
“MPC-free” ice cream social
Tuesday evening during which
each of the lawmakers commend
ed the farmers for their efforts to
gain cosponsors for the Milk Im
port Tariff Equity Act. The lead
ers reported that, while in Wash
ington, the dairy farmers had
helped increase the list of cospon
sors to 92 in the House and 22 in
the Senate.
plant to another pool plant in de
termining pool plant diversion
limits; and, establish a “net ship
ments” provision for milk deliv
eries to distributing plants.
The interim order became ef
fective March 1. For additional
information about the decision,
contact: Donald R. Nicholson,
USDA/AMS/Dairy Programs,
P.O. Box 14650, Shawnee Mis
sion, KS 66285-4650; Tel. (913)
495-9300; email: donald.nichol
son@fmmacentral.com.
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