Reducing ethanol protections won’t hurt industry, report finds

The report also projects that taxpayers would benefit if the tax relief and protections were allowed to expire. 

“The
Renewable Fuel Standard is the primary driver of ethanol demand,” the
report states. “The tax credit prompts blenders to use about 900
million gallons of ethanol each year above mandated levels. This costs
taxpayers some $6 billion annually (or almost $7 per gallon). Ending
the subsidy would save that amount.” 

Ways and Means Chairman
Sandy Levin (D-Mich.) looks reduce ethanol tax relief in a green energy
jobs bill he hopes to move through his chamber after the August recess.
The Senate also seeks to move an energy bill later this year.