In a move that directly defies the open goals of the White House, the Senate has managed to dramatically reverse its course and overwhelmingly passed a vote to end federal subsidies for ethanol production.
The move was unexpected to most as just two days prior the same legislation failed to pass by a vote of 40-59, 20 votes shy of the necessary count. Now, the Associated Press is reporting that a second vote was taken and passed 73-27, easily surpassing the required vote tally.
What caused the dramatic change of heart?
Some senators explained that it was nothing more than procedural grounds, while others apparently changed their mind on the issue itself with no given explanation. The votes came from a joint effort led by Republicans and Democrats alike, but also garnered the support of independents which typically vote along Democratic party lines.
While the legislation passed is mostly described as an end to the annual $5 billion in ethanol subsidies, the legislation is actually multifaceted – simultaneously repealing a $.54-per-gallon tariff on imported ethanol as well. The logic behind the joint move is to move the U.S. ethanol market back towards a true free market, allowing both local and global competition that will help to determine the true viability of the fuel source.
“The best way for ethanol to survive is to stand on its own two feet, without spending something we don’t have to get something we’re going to have anyway,” said Senator Tom Coburn, a Republican from Oklahoma.
While the Senate handily passed the most significant anti-subsidy legislation its second time around, a second measure aimed at federal support for the national distribution of ethanol failed to pass, with a final vote of 59-41 to reject the measure.
Destined for a veto?
The White House has made it clear that it will continue to push and support ethanol through subsidies and other measures, meaning a veto is likely when the Senate’s legislation reaches President Obama’s desk.
Critics of the subsidies argue that existing federal mandates for ethanol are sufficient to sustain the industry, meaning the subsidies and tax credits are nothing more than “a gift to oil companies and grain producers, a gift that actually harms American consumers and our environment,” said Senator Ben Cardin, a Democrat from Maryland.
References
1.’Senate reverses…’ view
2.’U.S. Senate…’ view
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