The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“INTRODUCTION OF IMPORTED ETHANOL FACILITATION ACT” mentioning the U.S. Dept. of Commerce was published in the Extensions of Remarks section on pages E1282 on June 19, 2008.
The publication is reproduced in full below:
INTRODUCTION OF IMPORTED ETHANOL FACILITATION ACT
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HON. MARK UDALL
of colorado
in the house of representatives
Thursday, June 19, 2008
Mr. UDALL of Colorado. Madam Speaker, today I am introducing a bill to facilitate the importation of ethanol. It is cosponsored by my colleague from Colorado, Mr. Perlmutter, and I appreciate his support.
The bill will direct the President to lower the ethanol import tariff, so that it will never be higher than the tax-credit subsidy for blending ethanol into gasoline.
Historically, the ethanol tariff was linked to the subsidy, and so had the effect of precluding foreign ethanol blenders from benefiting from the subsidy. However, the recently-enacted Farm Bill will reduce the subsidy but simultaneously extend the tariff for 2 more years at
$0.54 per gallon.
Unless that changes, the tariff will be changed into a trade barrier that will make it even harder for ethanol imports to enter the U.S. market. This can have serious adverse consequences. For example--
By restricting supplies, it will tend to increase the price of fuel--
including both gasoline and ethanol--in the United States.
It will make it harder to import sugar-based ethanol, which can work in today's cars and, like other ethanol emits considerably less lifecycle greenhouse gas than gasoline.
It works against imports from friendly countries that produce ethanol while oil and gasoline imports from OPEC enter the United States tax-
free.
It hinders the emergence of a global biofuels marketplace that could permit mutually beneficial trade between producing regions and stabilize both fuel and food prices.
And it tends to increase our dependency on fossil fuels--including petroleum from the Middle East--when we should be working to reduce that dependency.
By restoring the role of the tariff as an offset, not a trade barrier, my bill will prevent those consequences. In this respect, it is a companion to legislation (S. 3080) introduced in the Senate by Senator Feinstein.
In addition, my bill will require the Energy and Commerce Departments to report to Congress regarding the possible effect of further reducing--or even eliminating--the tariff on ethanol on fuel supplies and prices in the United States and on the domestic production of ethanol.
I have included this provision because I think it is worth exploring whether legislation to further reduce or eliminate the tariff could help reduce fuel prices without serious harm to our domestic ethanol industry.
Madam Speaker, this bill alone will not do all that should be done to revise and reform our energy policies. But I think it can help, and I think it deserves the support of all our colleagues.
For the benefit of our colleagues, here is an outline of the bill's provisions:
Section-By-Section Outline
Section one provides a short title, ``Imported Ethanol Facilitation Act.''
Section two sets out findings regarding the reasons for the bill. It also states the bill's purpose, which is ``to ensure that the tariff on ethanol does not exceed the tax credit applicable to blenders of ethanol, to avoid erecting a new trade barrier to imports of ethanol while assuring that foreign blenders will not benefit from the tax credit, and to require a study of potential effects of further reduction in or elimination of the duty on ethanol.''
Section three directs the president to act to ensure that the ethanol tariff will not exceed any tax credit applicable to ethanol.
Section four requires the Department of Energy and the Commerce Department to report to Congress regarding the effects any further reduction--or elimination--of the ethanol tariff would have on (1) fuel supplies and fuel prices in the U.S.; and (2) the domestic production of ethanol. The deadline for this report would be 90 days after the bill's enactment.
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