In a Senate often paralyzed by partisanship, a rare bipartisan effort was launched last week by confirmed liberals and conservatives to urge their Senate leaders to allow federal programs supporting domestic ethanol production to expire at the end of December.
In a letter signed by 17 senators, the group argues that a subsidy for domestic ethanol production and a tariff on imported ethanol are "fiscally irresponsible and environmentally unwise." Extending them, the senators argued, would "make our country more dependent on foreign oil."
Signers of the Senate letter argue that the subsidies are redundant because a federal renewable-fuels mandate included in the 2005 energy law already guarantees ethanol producers a market. "We cannot afford to pay industry for following the law," the senators wrote.
At issue are the 45-cents-per-gallon tax credit that oil companies receive for blending ethanol into gasoline and the 54-cents-per-gallon tariff on ethanol imports. Both provisions were designed to encourage greater use of domestically made ethanol.
Leading the effort are Sens. Dianne Feinstein (D-Calif.) and Tom Coburn (R-Okla.). Others who signed the letter include Robert Bennett (R-Utah), Richard Burr (R-N.C.), Ben Cardin (D-Md.), Jon Kyl (R-Ariz), John McCain (R-Ariz.) and Jim Webb (D-Va.).
