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TSCRA Daily News Update, June 6, 2008
Increased scrutiny on ethanol import tariff from Congress, World Bank A proposal in the Senate would reduce the 54-cent-per-gallon ethanol import tariff to the same level in effect for the ethanol blender credit (51 cents currently, but scheduled to fall to 45 cents in January 2009). The tariff had been scheduled to expire at the end of this year, but a provision in the farm bill extended it through 2010. Meanwhile, World Bank President Robert Zoellick suggested this week that the United States lift the ethanol import tariff entirely, in order to ease pressure on global food prices. While Zoellick acknowledged that U.S. production of renewable fuels is only one factor in rising food costs, he suggested that lifting the tariff could help the United States satisfy some of its fuel needs more economically than through domestic ethanol production. NCBA member policy supported allowing the import tariff to expire at the end of this year as originally scheduled, because it restricts access to a badly needed source of fuel, increases pressure on a dwindling supply of agricultural land, and insulates grain-based ethanol production from free market competition.
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