On May 5 Sen. John Kyl (R-AZ) announced that he and Sen. Dianne Feinstein (D-CA) “will introduce legislation on Monday [May 8] to strike the 54 cent [per gallon] ethanol import tariff:” Kyl’s press release is reproduced below; an essentially identical version is on Sen. Feinstein’s website.
Snips from Sen. Kyl:
“Suspending the tariff on ethanol is another step that Congress can take to ease the pressure at the pump,” said Senator Kyl. “The federal government set mandates for ethanol use in gasoline. Due to this mandate, the demand is outpacing supply, which further contributes to the soaring gas prices we are experiencing. Suspending the ethanol tariff will help open alternative avenues of supply.”
Snips from Sen. Feinstein:
“Giving the ethanol industry a triple subsidy in the energy bill last year was a terrible mistake,” Senator Feinstein said. “If they are going to be forced to use ethanol, our refineries should have the choice to buy it from the cheapest seller. They should not be constrained by artificial protectionist tariffs. Now that the ethanol mandate is law, U.S. taxpayers should no longer be asked to shoulder the costs of these subsidies. So the time has come to strike the 54 cent per gallon import tariff and give drivers a break at the gas pump.”
The Kyl-Feinstein bill is not yet posted in Thomas.