Sen. Jim Webb, D-Va., yesterday joined Sen. Dianne Feinstein, D-Calif., to introduce legislation that would repeal the 45-cent-per gallon subsidy for corn ethanol blenders, saving the nation approximately $6 billion a year.
The bill also lowers the tariff on imported ethanol to match the 45-cent-per gallon subsidy that will remain in place for non-corn, second generation “advanced biofuels.”
“Eliminating or reducing ethanol subsidies and trade barriers would help decrease the budget deficit, benefit the environment, and lessen our reliance on imported oil,” Webb said. “Historically our government has helped a product compete in one of three ways: subsidize it, protect it from competition, or require its use. Ethanol may be the only product receiving all three forms of support from the U.S. government at this time.”
In November 2010, Webb signed a bipartisan letter with 16 other Senators that called for an end to ethanol subsidies and tariffs. The senator also partnered with Senators Feinstein and Shaheen in December on an amendment to tax legislation that would redirect funding from ineffective ethanol subsidies and tariffs toward advanced energy technologies and U.S. deficit reduction.
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