End Ethanol Subsidies, Senators Say

Subsidies and tariffs to promote domestic ethanol production are “fiscally irresponsible and environmentally unwise” and should be ended, a bipartisan group of United States senators declared in a letter to the chamber’s leaders on Tuesday. “Eliminating or reducing ethanol subsidies and trade barriers are important steps we can take to reduce the budget deficit, improve the environment, and lessen our reliance on imported oil,” the senators wrote to the Democratic majority leader, Senator Harry Reid, and the Republican minority leader, Senator Mitch McConnell. The letter was circulated by Dianne Feinstein, Democrat of California, and John Kyl, Republican of Arizona. The 15 co-signers included John McCain of Arizona and Tom Coburn of Oklahoma, both Republicans; and Barbara Boxer of California and Jack Reed of Rhode Island, both Democrats. Earlier this week a coalition of advocacy groups from across the political spectrum issued their own call to end the ethanol subsidy for refiners. Their letter, to Congressional leaders in the House and Senate, was signed by Freedomworks, the Heartland Institute and other conservative groups as well as environmental organizations like the Sierra Club and the liberal activist group MoveOn.org. Food and livestock industry groups have made their own calls to end ethanol subsidies, arguing that the policies have led to a rise in the price of feed and basic food commodities...more