At the end of December, Congress allowed a $.54 per gallon tariff on imported ethanol in a $.45 per gallon credit to US oil companies for purchase and use of ethanol to inspire. Great move! We need ethanol to substitute for gasoline like we need another hole in our collective head.
In that context, does Congress have a hole in its head as it continues to subsidize ethanol production from cellulosic materials, such as wood chips, grass, etc.?
Let's make an analogy. Wheat is a staple food in the US diet. Fortunately, we have enough, so that there is no present shortage. But, suppose we started to run a bit short and the price began to rise. In its wisdom, government would not allow farmers to increase wheat production. Instead, it would give farmers a subsidy to grow oats.
We have a large untapped reserve of petroleum, which could be refined to gasoline. Why are we fooling around with ethanol and wasting taxpayer money in the fooling around?
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