Wednesday, May 10, 2006

Congress Discusses Lowering Tariffs On Ethanol

Question: Does it make sense to swap one energy resource supply dependency to another potential resource supply dependency?

These excerpts from the National Association of Convenience Stores -

Members of Congress Fuel Talks on Ethanol Tariff
News & Media Center - May 10, 2006

WASHINGTON -- U.S. House Majority Leader John Boehner (R-OH) said on May 9 that a temporary reduction of the U.S. tariff on ethanol imports would help ease prices at the pump, reports Reuters.

"We don't have enough ethanol in production today. It's coming on board, but if we were to temporarily reduce the tariff on ethanol coming into our country, I think that would ease the pressure that's out there, resulting in lower gasoline prices," Rep. Boehner told reporters.

Last week, President Bush called on Congress to lift the current tariffs on ethanol imports. When asked if the House and Senate had enough votes to lift the tariffs, Boehner told reporters, "I think it's possible."

"Lifting the tariff would be a victory for the oil companies, a kick in the face to rural America where the ethanol comes from, and leave consumers with the same high gas prices we have today," said Sen. Charles Grassley (R-IA), chairman of the Senate Finance Committee, which is the committee that would review tariff legislation.

Rep. Boehner commented to Reuters that not all ethanol industry representatives are opposed to the idea of easing U.S. ethanol import tariffs.
"Our two countries need to accelerate their cooperation … Brazil and the United States should combine their strengths to contribute to the region's economic, social and political development," notes the op-ed. "We both face challenges to our energy security from the sharply rising worldwide demand for energy … But amid this new energy threat, we also have an opportunity to fashion a win-win response that could benefit both our countries."
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In all truthfulness, we need to have the issue of ethanol supply, as we do for petrol fuel supply, be our own. Open up ANWAR for more oil, create more refineries, and internally expand the distilling of ethanol through tax incentives.

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