Senators Call for End to Ethanol Tariffs and SubsidiesTuesday, November 30, 2010
(American Meat Institute)
U.S. Senators Dianne Feinstein (D-CA) and Jon Kyl (R-AZ) today led a bipartisan coalition of 17 Senators in calling for an end to tariffs and subsidies supporting ethanol.
In a letter sent to Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell, the Senators expressed their lack of support for extending the current 54-cent-per-gallon tariff on ethanol imports and the 45-cent-per-gallon subsidy for blending ethanol into gasoline. Both provisions expire at the end of this year under current law.
“Subsidizing blending ethanol into gasoline is fiscally indefensible,” the letter stated. “If the current subsidy is extended for five years, the Federal Treasury would pay oil companies at least $31 billion to use 69 billion gallons of corn ethanol that the Federal Renewable Fuels Standard already requires them to use. We cannot afford to pay industry for following the law.”
The letter pointed to a July 2010 study by
the Congressional Budget Office, which found
that ethanol tax credits cost taxpayers $1.78
for each gallon of gasoline consumption
reduced, and $750 for each metric ton of carbon
dioxide equivalent emissions reduced. The
letter also highlighted a study by Center for
Agricultural and Rural Development at
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