Ethanol tariff not going anywhere anytime soon
The 54-cent-per-gallon tariff on ethanol will survive the ongoing energy bill negotiations on Capitol Hill. The Senate voted to keep the tariff 56-36, according to the Des Moines Register. This tariff makes imported ethanol more expensive, just as the 51-cent-per-gallon tax credit makes domestic ethanol cheaper. New Hampshire Republican Senator Judd Gregg was one who spoke in favor of repealing the tariff, but it's not like the increased cost is stalling imports. Last year, America sucked in 729 million gallons from outside sources. A likely addition to the energy bill would keep the tariff through 2010 and reduce the tax credit to 46 cents a gallon and shift the nickels over to other biofuels.
[Source: Des Moines Register]
Reader Comments (Page 1 of 1)
charlie 11:51AM (6/22/2007)
"but it's not like the increased cost is stalling imports. Last year, America sucked in 729 million gallons from outside sources."
What are you talking about? Of course its stalling imports. That just means that we'd be importing possibly billions of gallons of ethanol if we didnt have it.
We shouldnt be protecting ethanol specifically anyway. Its not a very good technology as far as cleaning the environment and decreasing dependence from foreign oil. Our incentive programs need to be technology so the best technology, not just the technology that the farmers currently like, wins out.
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