Compromise on Ethanol Subsidies

The 45-cent per gallon Volumetric Ethanol Excise Tax Credit (aka, Ethanol Subsidies) has been extended for one year, along with a continuation of the 54-cent per gallon U.S. tariff on biofuel imports. These credit and tariff were set to expire at the end of 2010.

Extending these provisions "will boost jobs and investment in the alternative energy sector, exactly when the economy needs a real shot in the arm," [Sen. Chuck] Grassley [R-Ia] said.

Industry trade groups will continue to lobby hard into 2011. Growth Energy is focused on phasing out subsidy dollars and shifting them to other energy infrastructure needs.

"We need to get to an open market where we have the cars and pumps to move our product to market," Broin [president and CEO of Poet LLC, foundering member of Growth Energy] said at a Capitol Hill conference Thursday on renewable energy.