Move will Benefit American Drivers, Provide Greater Access to Advanced Renewable Fuel
WASHINGTON, Dec. 23, 2011 /PRNewswire-USNewswire/ -- With the 112thCongress going home for the holidays, securing the long awaited expiration of the tariff on imported ethanol and corresponding tax credit, the Brazilian Sugarcane Industry Association (UNICA) issued the following statement. It should be attributed to Leticia Phillips, UNICA's Representative in North America.
A day many thought might never arrive is finally just around the corner. We can now say confidently that ethanol's 30-year-old tax credit and import tariff will finally expire on December 31st. Ending these costly and unnecessary subsidies just eight short days from now will save taxpayers money, help lower fuel prices, and provide Americans with greater access to advanced renewable fuels like sugarcane ethanol. This change in ethanol policy produces three big winners.
American Taxpayers. In these times of economic uncertainty and skyrocketing deficits, the $6 billion annual price tag for ethanol subsidies became a major target for deficit hawks – especially when the American industry's exports are booming and leaders admitted they could do without. Eliminating the ethanol subsidies should give every American taxpayer six billion reasons to cheer.
American Drivers. Ending the ethanol import tax and removing trade barriers will reduce price volatility and help ensure drivers get the lowest price available at the pump. While predicting future fuel prices is a guessing game, consumers win when businesses have to compete in an open market because competition produces higher quality products at lower costs. Now this same principle will hold true for renewable fuels.
Clean Energy Supporters. The U.S. Environmental Protection Agency designates sugarcane ethanol as an advanced renewable fuel because it reduces greenhouse gas emissions by more than 50 percent compared to gasoline. With the import tax gone, this sweeter alternative can now be a larger part of the solution for diversifying U.S. energy supplies and improving America's energy security.
We applaud members of both the House and Senate who fought to let these subsidies expire as planned on December 31st, and whose bold leadership was invaluable throughout this past year. Additionally, we want to celebrate the tens of thousands of Americans who took action for clean energy by calling or writing their members of Congress during critical moments within the past two years. Real people from all 50 states came to understand how sugarcane ethanol is a clean and affordable renewable fuel that can help save money at the pump, cut U.S. dependence on Middle East oil and improve the environment. This victory is a testament to their involvement, enthusiasm and persistence.
Sugarcane ethanol producers look forward to welcoming a new era of tariff free trading opportunities and playing an important role supplying America's clean energy future.
The Brazilian Sugarcane Industry Association (UNICA) is the leading trade association for the sugarcane industry in Brazil, representing nearly two-thirds of all sugarcane production and processing in the country. For further information on sugarcane ethanol, please visit www.SweeterAlternative.com.
SOURCE Brazilian Sugarcane Industry Association (UNICA)