December 12, 2006

U.S. Congress extends ethanol tariff to 2009

Washington, D.C. – Both houses of the U.S. Congress have voted to extend a 54-cent-per-gallon tariff on imported ethanol through January 1, 2009. The tariff was scheduled to expire in October 2007. South Dakota Senator John Thune, who championed the tariff, says that it promotes domestic ethanol production and guarantees a greater market for corn growers.

A Renewable Fuels Standard passed last year requires the use of 7.5 billion gallons of renewable fuels by 2012. Currently, the U.S. has 109 ethanol facilities nationwide, producing 5.2 billion gallons of ethanol; 53 additional plants are under construction, and seven are expanding.

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