Ag and Energy secretaries defend biofuels

WASHINGTON, June 12 (UPI) -- Ethanol production saves U.S. consumers $150 to $300 per household in gas costs per year, adding slightly to food costs, two Cabinet secretaries said.

In a joint letter to U.S. Sen. Jeff Bingaman, D-N.M., Energy Secretary Samuel Bodman and Agricultural Secretary Edward Schafer said biofuel, questioned by members of Congress in recent weeks, "makes important contributions" to food and gas prices, national security and the environment.

Gas prices would rise between 20 cents and 35 cents per gallon without biofuel additions, the letter said.

Further, while food prices rose 4.8 percent in the first four months of the year, increased biofuel production has added 4-5 percent to the total increase "while all other factors contributed 95-96 percent of the increase" the letter said.

Federal biofuel mandates, meant to help reduce U.S. dependence on foreign oil and reduce greenhouse emissions, have come under fire in recent weeks, as food price inflation has become a political concern.