U.S. Senate Votes to Cut Billion Dollar Ethanol Subsidies

[Nathanael]

The U.S. Senate has voted to not only eliminate billions of dollars in subsidies for the country's ethanol industry, but also decided to rescind tariffs against imported ethanol.

In a vote of 73 to 27, the Senate approved legislation which would end the 45-cent-per-gallon subsidy ethanol refiners and mixers currently receive from the government. Additionally, the Senate approved eliminated the 54-cent tariff on ethanol imported from across the globe.

The new measure will be added to an economic development bill, which is expected to have a tough time passing through the Senate. Thursday's measure, sponsored by Senator Dianne Feinstein (D-California) and Tom Coburn (R-Oklahoma), was actually an amendment from an ethanol measure which was failed to pass earlier in the week.

Link: http://www.energyboom.com/biofuels/us-senate-votes-cut-billion-dollar-ethanol-subsidies

[kenfrequed]

1. Honestly this was an illusory solution to fossil fuel addiction anyhow

The corn required to make all the ethanol was ridiculous and destroying plenty of land as well. This is not an environmental solution. Solar or wind and electric cars would be.

[Andy823]

2. Well...

Now they need to end corporate farm subsidies, and subsidies and tax cuts to big oil! I won't be holding my breath for any of these to actually pass though!

[lfairban]

3. Like the subsidy elimination, can't see the tariff elimination.

Eliminating the tariff is just losing revenue in a cash stressed budget, increasing balance of payment problems, and allowing more foreign competition. I don't see it.

[kristopher]

4. The ethanol industry says this is a show vote.

And that it isn't likely to become law.

The bill received wide bi-partisan support and was approved 73-27. Fourteen Republicans and 13 Democrats -- mostly from corn-producing states -- voted against the measure. The amendment will be tacked on to an unrelated bill that may have trouble passing a Senate vote. However, the vote underscores the political momentum facing the ethanol industry as a showdown over the budget and the debt ceiling looms.

A separate bill that has yet to be voted on, and one that is getting support from the ethanol industry, would end the subsidy, but would implement a variable subsidy that would be tied to oil prices. A portion of the revenue from the new subsidy would then be used to pay down the national debt.

<snip>

Because the bill has little chance of becoming law, the Renewable Fuels Association saw it more as political maneuvering during a time of budget tightening than a serious attempt at crafting energy legislation.

“This vote was a freebie with no real consequences,” the statement went on to read. “With this theater now in the past, the ethanol industry stands ready to work with the Senate, House, and the Obama Administration to enact thoughtful policies that responsibly address fiscal concerns while moving American ethanol production forward.”

http://www.renewableenergyworld.com/rea/news/article/2011/06/u-s-senate-votes-to-kill-ethanol-subsidy