Green groups, GOP hopefuls oppose corn-based ethanol subsidies

From the New Mexico Independent - By Eartha Jane Melzer - Much of the attention on corn-based ethanol has focused on the role that this supposedly renewable fuel is playing in driving up global food prices. Now environmental groups and some conservative politicians are pointing out another problem — corn-based ethanol consumes the bulk of federal funding on renewable energy and the big oil companies that blend the ethanol into gasoline are collecting subsidies to the tune of about $6 billion a year. The Volumetric Ethanol Excise Tax Credit (or VEETC) is a 45 cents per gallon credit that goes to the refiner that blends the ethanol into fuel. Because the government already mandates that ethanol be added to gasoline and bans the import of foreign ethanol, critics say that the VEETC is unnecessary to maintain supply and is now only a handout to the oil industry. British Petroleum has not been open about the benefits it receives from the credit, but is widely believed to be the largest recipient of the credit. Read more

Green groups, GOP hopefuls oppose corn-based ethanol subsidies