Congress Funds Cellulosic Ethanol, Cuts Corn-Based Ethanol Subsidies (A Little)
Buried in a bill that reads like a wish-list for special interests— including a tax break for racehorse owners and increased loans for sugar producers — Congress initiated an additional $1.25 per gallon additional subsidy for ethanol from cellulosic sources (i.e. wood chips, sugar cane waste, etc.). It also included a cut in ethanol subsidies from 51 cents to 45 cents a gallon (a 12% cut).
Shifting ethanol production from food crops to agricultural waste products, especially in this time of rising food prices, would seem to be a sensible move— especially as increased ethanol consumption would push farmers to switch their land from food crops to energy.
AP reports that though President Bush has promised to veto the bill, Congress has a veto-proof margin.
Shifting ethanol production from food crops to agricultural waste products, especially in this time of rising food prices, would seem to be a sensible move— especially as increased ethanol consumption would push farmers to switch their land from food crops to energy.
AP reports that though President Bush has promised to veto the bill, Congress has a veto-proof margin.
Comments