Reports of the demise of the ethanol tariff in the new White House budget were apparently greatly exaggerated.
Despite hints from Energy Secretary Sam Bodman last week that changes might be made to the expiring U.S. ethanol import tariff in its new 2009 government budget that was sent to Congress on Monday, no such changes were included.
Reuters reports that an energy department spokesperson said while the 54-cent-a-gallon tariff is set to expire at the end of December during the 2009 budget year, which begins this October 1, the administration will have discussions with lawmakers later this year on what should be done with the tariff.
The tariff is designed to protect the U.S. ethanol industry from other countries taking advantage of the 51 cent per gallon blenders’ tax credit.