US House bill would to cut ethanol import tariff

Reuters UK
Fri Jun 20, 2008 8:03pm BST
By Tom Doggett

WASHINGTON, June 20 (Reuters) - Two U.S. House lawmakers introduced legislation this week that would lower the U.S. tariff on ethanol imports, boosting supplies of the fuel additive and hopefully lower gasoline prices for consumers.

The bill would reduce the ethanol import tariff from 54 cents per gallon to 45 cents, bringing the tariff in line with U.S. ethanol blending subsidies, which a new farm law lowered to 45 cents per gallon from 51 cents.

The measure's sponsors, Democratic Reps. Mark Udall and Ed Perlmutter, both from Colorado, said the higher tariff would restrict supplies and increase the price of fuel.

"This bill opens the door to lower fuel prices in the short term and promotes the growth of alternative sources of fuel for the long term," said Perlmutter.

The legislation would also require the Energy and Commerce Departments to report to Congress on how even deeper cuts in the tariff would affect fuel prices and domestic ethanol production.

Similar legislation was introduced in the Senate earlier this month.

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