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]

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