December 08, 2010

Manchin Joins Bipartisan Effort to End Ethanol Subsidies, Tariffs

Letter to Sen. Harry Reid Expresses Opposition to Preferential Pricing Support by the Federal Government for Ethanol

Washington, D.C. - Senator Joe Manchin today sent a letter to Senator Harry Reid expressing opposition to continued preferential pricing support by the federal government for ethanol.  Senator Manchin joins Senators Dianne Feinstein and Jon Kyl along with a bipartisan group of 15 other Senators in opposition to this measure.
Manchin states in his letter, “I understand that if the current subsidy for blending ethanol into gasoline is extended for five years, the cost to the Federal Treasury is estimated to be $31 billion, while the one-year cost for extending both the tariff as well as the ethanol subsidy is scored at roughly $6 billion. These are funds that we do not have, being dedicated to an industry that is economically viable and less deserving than many other energy stimulus efforts.”
Manchin stated that the extension of the 45 cent-per-gallon subsidy for blending ethanol into gasoline and the 54 cent-per-gallon tariff on ethanol imports has proven to be fiscally irresponsible and seems to be making the country more dependent on importing foreign oil.
“I respectfully request that if an effort is undertaken to include these provisions in any tax extender legislation that may be considered in the remainder of this session that it be in order to offer an amendment to strike that provision,” Manchin added.
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