Much of Bush's advocacy stems from ethanol's current cost. Despite the 51 cents-per-gallon federal tax credit enjoyed by domestic ethanol producers, consumers pay roughly the same price per gallon of ethanol to regular gasoline. Worse, the corn-based version grown is not as effective as gasoline, making consumers reluctant to switch. Both issues could be resolved if ethanol is imported: Brazil's sugar-based ethanol is not only more efficient than its corn-based counterpart, but would cost a third to half compared to gasoline. Current federal law imposes 54-cent-a-gallon tariff on any sugar-based ethanol which effectively removes the cost advantage. Corn growers oppose the removal of the tariff.
- Florida energy bill promotes renewables, conservation
- Letting the best ethanol win
- Corn growers happy with ethanol demand
[Source: Environment News via Heartland Institute]