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McDonald's Corp. Message Board

  • bluecheese4u bluecheese4u Jun 20, 2013 1:42 PM Flag

    Fast food chains put renewable fuel mandate repeal on the menu

    Fast food chains put renewable fuel mandate repeal on the menu

    Posted on June 20, 2013 at 10:40 am by Jennifer A. Dlouhy

    Chain restaurants on Thursday launched a campaign aimed at repealing a renewable fuel mandate they say is hiking costs for franchisees nationwide.

    Robert Green, the head of the National Coalition of Chain Restaurants, said the goal is to “leverage the grassroots strength of franchisees” who are “in every congressional district around the country,” as Congress takes initial steps to tackle the eight-year-old mandate.

    The restaurateurs’ push joins other fights against the Renewable Fuel Standard, which requires refiners to blend steadily increasing amounts of corn-based ethanol and other alternatives into the nation’s transportation fuel supply.

    Record prices: Ethanol leading to a corn-based bubble

    As gasoline use has declined, the oil industry says it can no longer blend in enough ethanol to meet the mandate, without exceeding a 10 percent threshold that is approved for use in all cars and trucks. A higher 15 percent mix, known as E15, is only approved for vehicles made since 2001.

    Meanwhile, farmers and the food industry complain that as some growers shift from food-grade sweet corn to field varieties destined for ethanol, it has pushed the costs of feeding livestock higher. Lisa Ingram, the president of White Castle, who spoke at a news conference on the chain restaurants campaign Thursday, said the RFS “has led to a dramatic increase in the price of corn.”

    “Since the RFS was established in 2005, the price of corn has risen over 300 percent,” she said.

    Ethanol: Bill would add natural-gas based ethanol to federal mandate

    And Mark Behm, the owner of Wendy’s franchises in Michigan, said the renewable fuel standard is pushing costs so high that “it’s harder for restauranteurs like me to invest in growing our business.”

    A Pricewaterhouse Coopers study commissioned by the National Council of Chain Restaurants concluded that the RFS mandate

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