Bill to Cut Down Ethanol Tariff Announced
US - Senators Dianne Feinstein, a California Democrat, and Judd Gregg, a New Hampshire Republican, introduced legislation this week (S. 3080) to lower the tariff to on imported ethanol to bring it in line with U.S. ethanol blending subsidies, which a recently enacted farm bill lowered to 45 cents per gallon from 51 cents per gallon.
11 June 2008
2 minute read
The bill would cut import tariffs to 45 cents per gallon from the current level of 54 cents per gallon, and require Congress to lower tariffs again if blending subsidies are cut even further.
The bill has been referred to the Senate Finance Committee.
J. Patrick Boyle, President and CEO of the American Meat Institute (AMI) issued this statement in reaction to the bill:
“We applaud Senators Feinstein, Gregg, Cantwell, Allard and Collins for recognizing the serious challenges these policies have presented to an integral part of the American farm community – America’s livestock producers. Our current food-to-fuel mandates have forced over one-quarter of the U.S. corn crop to be diverted from feed and food to the production of ethanol, driving animal feed prices sky-high. While the bill is a step in the right direction, we would urge Congress to review the appropriateness of any tariff on imported ethanol, as well as the continuing necessity of a tax credit for blending ethanol and the economic impacts of the currently mandated food-to-fuel policies. The soaring feed costs imposed on our livestock will continue to create inflationary pressure on meat and poultry producers and hurt American consumers.”
In addition to this bill, three other biofuels bills have been introduced, including H.R. 6134, which proposes the restoration of certain fuel provisions enacted in the Energy Policy Act of 2005; H.R. 6136, which would amend the Clean Air Act to authorize the President to waive any requirement for an applicable volume of renewable fuels if he find that the applicable volume is not technologically feasible or commercially available; and H.R. 6137 which would remove the additional tariff on ethanol.
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