January 14, 2008 

This week the American Meat Institute and the Renewable Fuels Association both suggested the same thing: that Congress increase funding in economic stimulus legislation for loan guarantees that help advance second generation biofuels.

AMI, along with 11 other food lobbies including the National Chicken Council, the National Pork Producers Council and the National Turkey Federation, signed a letter Monday asking Congress to fund grants, loan guarantees and other tools "that will help advance second generation biofuels that do not displace food."

In a teleconference with journalists on Tuesday, Renewable Fuels Association Chairman Chris Standlee and CEO Bob Dinneen also suggested loan guarantees to help fund next generation technologies that expand the basket of sources for ethanol, though they disputed suggestions that corn-based ethanol displaces food.

Of course, that's where the suggestion similarities end.

The letter signed by the food groups went on to suggest, "Congress should redirect a $5 billion-a-year tax subsidy for gasoline refiners who blend corn ethanol to a production tax credit for the producers of cellulosic and advanced biofuels."

By contrast, Standlee said current corn ethanol producers have been hit by the same economic stresses as other industries and must receive the support needed to remain viable so that they can expand from starch-based ethanol to cellulosic ethanol.

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