Senator Dianne Feinstein from California has introduced legislation that would repeal the 45-cent-per gallon subsidy for corn ethanol blenders, saving the nation approximately 6-billion dollars a year. In addition, the bill would lower the tariff on imported ethanol to match the 45-cent-per gallon subsidy that will remain in place for non-corn, second generation “advanced biofuels.” Feinstein explains, – we allow refiners to purchase cheaper, environmentally-friendly ethanol from foreign sources while at the same time preventing foreign producers from benefitting from U.S. subsidies.
Growth Energy CEO Tom Buis says – this does nothing to help our nation reduce its dependence on foreign oil. Look at what is happening in the Middle East and North Africa. Take Libya for example. The disruption in Libya over the past few weeks has reduced one half of their output of oil. The price of gasoline for U.S. consumers has sky rocketed and resulted in consumers paying an additional $70 billion annually in higher gas prices.
According to Tom Buis, – the U.S. ethanol industry produces the equivalent of a million barrels of oil a day and we are the second largest supplier of fuel to our nation. Therefore, risking the production of U.S. ethanol would be even more disruptive and more costly to our consumers and to our economy.