On the recordMarch 10, 2011
I have introduced legislation, with my colleague Senator Webb, to repeal corn ethanol subsidies and reduce ethanol tariffs. This legislation has two major provisions. First, it repeals the 45 cent per gallon corn ethanol blender subsidies--26 U.S.C. 6426(b) and 26 U.S.C. 40(h)--as of July 1, 2011, eliminating the corn ethanol subsidy six months early and saving approximately $3 billion for American taxpayers. The bill would not affect the credit for noncorn, second generation ``advanced biofuels'' through 2011. Second, the bill would lower the tariff on imported ethanol to the per gallon level of ethanol subsidies, to reestablish parity between the subsidy and the offsetting tariffs. This removes the real trade barrier on imported ethanol, but also prevents foreign producers from benefitting from U.S. subsidies. This legislation is necessary because the 54 cent-per-gallon tariff on ethanol imports and the 45 cent-per-gallon corn ethanol subsidy are fiscally irresponsible and environmentally unwise.
