DISCLAIMER: I understand the government subsidizes ethanol, and as a conservative, I should despise that concept. But if we're talking subsidies, you right-nuts out there, perhaps we should equally despise fossil fuels?:
•The federal government provided substantially larger subsidies to fossil fuels than to renewables. Subsidies to fossil fuels—a mature, developed industry that has enjoyed government support for many years—totaled approximately $72 billion over the study period, representing a direct cost to taxpayers. -Source: Environmental Law InstituteNo. I'm not for that. Just shutting up the critics for the time being...
Arguments aside, I want to call attention to Senators John Thune and Amy Klobuchar, whose recent editorial in the Forum is calling attention to their efforts in Washington, D.C. on behalf of this renewable fuel.
As a Democrat and Republican, both of us are strong advocates for American-made biofuels. But we also recognize that times have changed. Ethanol is no longer a new industry, and our country is facing serious fiscal challenges. Given the shifting tides in Congress, we felt it was important to get ahead of the curve so that ethanol could determine its own future.I'm for this- eliminating VEETC to save $2 billion. Not rocket science, eh?
Despite divisions in Congress, we worked with Sen. Diane Feinstein of California to map out a compromise that balances the need for deficit reduction with the need to continue promoting domestic renewable fuels as an essential pathway to energy independence.
The outcome of our efforts is a bipartisan agreement reached on July 7 that is supported by ethanol industry groups, as well as the American Farm Bureau Federation and the National Farmers Union.
In summary, this is what our compromise proposes:
It eliminates the Volumetric Ethanol Excise Tax Credit at the end of this month instead of the end of 2011. This change would result in savings of just over $2 billion.
Under the bipartisan agreement, $1.3 billion from the remaining credit will be dedicated to reducing the federal budget deficit.
And unlike many legislative proposals that would have eliminated any support for biofuels, the remaining $668 million of the 2011 VEETC savings will go to targeted incentives for small ethanol producers, infrastructure like electric charging stations and blender pumps that are needed to bring greater competition to the fuel market, and cellulosic incentives. Our agreement gives consumers a real choice at the pump and is good for all families struggling with high fuel prices.
Bipartisan work to support agriculture, development, and energy independence while also making CUTS - snip snip snip. And paying down the deficit. And giving incentives to small producers, which eventually benefits CONSUMERS.
I can hear the scissors rockin'.
That said, get your own ethaknowledge.