Renewable Fuels Association getting flack from Wall Street Journal for $50 billion in proposed ethanol industry loan guarantees

In Washington, the Renewable Fuels Association continues to receive flack for its proposal for $1 billion in short-term loans from the government, and $50 billion in long-term loan guarantees. The Wall Street Journal opined “The uglier realities of corn ethanol are at least becoming more widely recognized, even on the political left,” but said that Congress would not listen because ethanol provides votes and jobs, and would be bailed out as were Fannie Mae and Freddie Mac, two other groups that would be bailed out to save political embarrassment.

The RFA responds that its proposals were in response to a request from the incoming Obama administration to propose ideas that could be included in an economic stimulus package.

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