Sens. Dianne Feinstein (D-Calif.) and Jim Webb (D-Va.) have introduced legislation that would repeal the 45 cents-per-gallon credit refiners and fuel blenders receive for each gallon of ethanol purchased and mixed into gasoline. But the bill would leave the incentive intact for next-generation "advanced biofuels" that are not made from corn.
"Ethanol is the only industry that benefits from a triple crown of government intervention: Its use is mandated by law, it is protected by tariffs and companies are paid by the federal government to use it. It's time we end this practice once and for all," Feinstein said in a statement.
The bill also would reduce the tariff on imported ethanol. "This lack of parity puts imported ethanol at a competitive disadvantage against imported oil, which discourages ethanol imports from Brazil, Australia and India. It also encourages oil imports from OPEC countries that enter the U.S. tariff-free," according to Feinstein's office.
