Senate Votes 73 Aye 27 Nay to End Ethanol Subsidies and Tariffs.
Count me as one (of many) who never saw much sense in making fuel from food, and even less sense in subsidizing the process while effectively prohibiting the import of ethanol. When one considers that ethanol actually reduces the energy per unit mass of vehicle fuel, and the deleterious effects on the fuel systems of older vehicles, the whole arrangement fails to make any economic sense.Oh my: Senate votes to end ethanol subsidies, 73/27
ALLAHPUNDIT | Hot AirYesterday's vote failed for procedural reasons but they cleaned it up today and nailed down a remarkably bipartisan consensus. Eyeball the roll: 38 Democrats, 33 Republicans, and both independents voted yes, with no votes coming mainly from plains-states senators eager to keep the campaign cash flowing. When you've got both senators from California and both senators from Oklahoma on the same side of an issue, you're working magic, my friends.
The vote also could have ramifications on future votes to reduce the deficit. Much of the GOP conference supported Feinstein's bill even though it does not include another tax break to offset the elimination of the ethanol tax credit.
As such, the vote could also represent a setback for influential conservative Grover Norquist, head of Americans for Tax Reform (ATR), who said a vote for the plan would violate the anti-tax pledge most Republicans have signed unless paired with a separate tax-cutting amendment...
Feinstein's amendment to an economic development bill would quickly end the credit of 45 cents for each gallon of ethanol that fuel blenders mix into gasoline. The credit led to $5.4 billion in foregone revenue last year, according to the Government Accountability Office.
The amendment also ends the 54-cent per gallon import tariff that protects the domestic ethanol industry.
Can we now move on to lifting the ban on incandescent light bulbs? Perhaps even an end to the mandate for low flow toilettes? One can but hope.
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Filed under:
Economics, Environment, Oil, Politics
Tags: Big Government, ethanol, subsidies
Comments (21)
Was this about:Mor... (Below threshold)1. Posted by epador | June 16, 2011 6:31 PM | Score: 3 (3 votes cast)
Was this about:
More Ethanol for Voters!!!
or
More Ethanol for Senators!!!
TK RIH
1. Posted by epador | June 16, 2011 6:31 PM |
Score: 3 (3 votes cast)
Posted on June 16, 2011 18:31
2. Posted by Rodney Graves
| June 16, 2011 6:32 PM | Score: 4 (6 votes cast)
Neither!
Less Tax Money squandered on ethanol.
2. Posted by Rodney Graves
| June 16, 2011 6:32 PM |
Score: 4 (6 votes cast)
Posted on June 16, 2011 18:32
3. Posted by recovered liberal democrat | June 16, 2011 6:36 PM | Score: 3 (3 votes cast)
Now maybe the cost of Fritos will come down. Tortilla chips and guacamole was becoming awfully expensive.
3. Posted by recovered liberal democrat | June 16, 2011 6:36 PM |
Score: 3 (3 votes cast)
Posted on June 16, 2011 18:36
4. Posted by Tsar Nicholas II | June 16, 2011 6:41 PM | Score: 2 (2 votes cast)
This is good news. It's been sheer lunacy to spend taxpayer dollars to subsidize a product that raises the prices for corn and pretty much all other food products and then doesn't do anything on the flip side to reduce gasoline prices.
4. Posted by Tsar Nicholas II | June 16, 2011 6:41 PM |
Score: 2 (2 votes cast)
Posted on June 16, 2011 18:41
5. Posted by Bill Johnson | June 16, 2011 6:42 PM | Score: 8 (8 votes cast)
Now to get the darned stuff out of our gas tanks, where it is wreaking havoc on small engines and auto fuel mileage....
5. Posted by Bill Johnson | June 16, 2011 6:42 PM |
Score: 8 (8 votes cast)
Posted on June 16, 2011 18:42
6. Posted by Rodney Graves
| June 16, 2011 6:44 PM | Score: 3 (5 votes cast)
Bill Johnson @ 5 opines:
Hear him! Hear him!
But keep in mind that a journey of a thousand miles begins with a single step.
6. Posted by Rodney Graves
| June 16, 2011 6:44 PM |
Score: 3 (5 votes cast)
Posted on June 16, 2011 18:44
7. Posted by cirby | June 16, 2011 6:49 PM | Score: 3 (3 votes cast)
I'm in the middle of a carburetor rebuild/fuel line replacement job on my old Honda motorcycle because of ethanol in gasoline, so I'm ready for them to cut the stuff completely...
7. Posted by cirby | June 16, 2011 6:49 PM |
Score: 3 (3 votes cast)
Posted on June 16, 2011 18:49
8. Posted by retired military | June 16, 2011 6:51 PM | Score: 4 (6 votes cast)
Umm Obama hasnt signed the bill yet and I am assuming that he wont.
8. Posted by retired military | June 16, 2011 6:51 PM |
Score: 4 (6 votes cast)
Posted on June 16, 2011 18:51
9. Posted by mpw280 | June 16, 2011 7:22 PM | Score: 4 (4 votes cast)
Corn prices at the CBOT/CME were down about $1/bu over the past several sessions on the idea this would happen. This is one huge component of higher food prices world wide, biofuels, if you take the subsidy leg from under the ethanol lobby it will reduce the price of food and meat, but if they leave the mandate it will make gas more expensive as we will have to pay more for ethanol to blend to 10 and 15% as per the mandate. mpw
9. Posted by mpw280 | June 16, 2011 7:22 PM |
Score: 4 (4 votes cast)
Posted on June 16, 2011 19:22
10. Posted by Sep14 | June 16, 2011 7:23 PM | Score: 4 (4 votes cast)
Now can we have a vote on the oppressive ObamaRomney care or whatever it is?
These destructive politicians have reached critical mass. Time for an eruption or collapse.
10. Posted by Sep14 | June 16, 2011 7:23 PM |
Score: 4 (4 votes cast)
Posted on June 16, 2011 19:23
11. Posted by rodney dill | June 16, 2011 8:26 PM | Score: 3 (3 votes cast)
I have an 09 Chevy Impala that is E-85 compatible. While E-85 is cheaper than gas, The mileage per gallon is about 20% less than regular unleaded, so the price has to be about 20% less to even break even pricewise. Only happened for a few weeks when the price broke above $4 per gallon for unleaded.
11. Posted by rodney dill | June 16, 2011 8:26 PM |
Score: 3 (3 votes cast)
Posted on June 16, 2011 20:26
12. Posted by MunDane | June 16, 2011 8:36 PM | Score: 4 (4 votes cast)
If you use more than 1.6 gpf, then God kills a kitten. Are you in favor of killing kittens?
12. Posted by MunDane | June 16, 2011 8:36 PM |
Score: 4 (4 votes cast)
Posted on June 16, 2011 20:36
13. Posted by Jay Guevara | June 16, 2011 8:46 PM | Score: 4 (4 votes cast)
Definitely an outbreak of common sense: ethanol subsidies and Weiner gone in the same day.
I feel a disturbance in the force.
13. Posted by Jay Guevara | June 16, 2011 8:46 PM |
Score: 4 (4 votes cast)
Posted on June 16, 2011 20:46
14. Posted by Sky Captain | June 16, 2011 8:48 PM | Score: 3 (3 votes cast)
Yes, I am!
14. Posted by Sky Captain | June 16, 2011 8:48 PM |
Score: 3 (3 votes cast)
Posted on June 16, 2011 20:48
15. Posted by jim m | June 16, 2011 8:49 PM | Score: 4 (4 votes cast)
Not sure how this ever passed.
It means spending fewer tax dollars.
It means reducing gas prices at the pump.
It means more corn available for food use ergo lower food prices.
It benefits the nation by lowering costs of gas and food while saving tax dollars. Pod people must have captured and replaced most of the Senate. Our Senate would never vote for something that made this much sense.
15. Posted by jim m | June 16, 2011 8:49 PM |
Score: 4 (4 votes cast)
Posted on June 16, 2011 20:49
16. Posted by Murgatroyd | June 16, 2011 9:25 PM | Score: 5 (5 votes cast)
Our Senate would never vote for something that made this much sense.
Don't worry. Our Beloved President will veto it.
16. Posted by Murgatroyd | June 16, 2011 9:25 PM |
Score: 5 (5 votes cast)
Posted on June 16, 2011 21:25
17. Posted by Billll | June 16, 2011 11:27 PM | Score: 5 (5 votes cast)
Read the article carefully. It ends the subsidy but not the requirement to blend it into gasoline. You'll pay more at the pump and still get lower gas mileage and less horsepower. In addition to increasing pump prices by the vanished subsidy, no countervailing tax cut was proposed. More money for the gov, and higher pump prices for you. The prez will sign this in a heartbeat.
17. Posted by Billll | June 16, 2011 11:27 PM |
Score: 5 (5 votes cast)
Posted on June 16, 2011 23:27
18. Posted by Jim Addison | June 17, 2011 2:26 AM | Score: 2 (4 votes cast)
Ditto Bill Johnson @ #5. I'll believe they are serious when they repeal the ethanol requirement (which is a net polluter and creates costs far in excess of any benefits) for gasoline AND the tariff on imported ethanol (hey, I don't object to it being offered as an option to fools who think they are being "green" by using it, as long as I'm not forced to buy it too).
18. Posted by Jim Addison | June 17, 2011 2:26 AM |
Score: 2 (4 votes cast)
Posted on June 17, 2011 02:26
19. Posted by Rodney Graves
| June 17, 2011 10:06 AM | Score: -1 (1 votes cast)
MunDane @ 12,
If that's what it takes to get a consistent bowl emptying flush, then that's what it takes.
19. Posted by Rodney Graves
| June 17, 2011 10:06 AM |
Score: -1 (1 votes cast)
Posted on June 17, 2011 10:06
20. Posted by retired military | June 17, 2011 10:38 AM | Score: 0 (0 votes cast)
ref Post 17. Good point. Welcome to $5 a gallon gas probably within the next 6 months. Obama will never sign into law a bill requiring ehtanol being removed from gasoline.
20. Posted by retired military | June 17, 2011 10:38 AM |
Score: 0 (0 votes cast)
Posted on June 17, 2011 10:38
21. Posted by RYan | June 18, 2011 6:20 PM | Score: 0 (0 votes cast)
2/3 majority of congress overrides. Thats a two thirds majority of the senate, what is the majority on the bill in the house?
21. Posted by RYan | June 18, 2011 6:20 PM |
Score: 0 (0 votes cast)
Posted on June 18, 2011 18:20