So we are now subsidizing other countries at 47.5 cents/gallon? And if we didn’t slap a 54 cent/gallon tariff on Brazilian ethanols we WOULD be an importer and save taxpayers money.
Bottom line: It costs 65% more energy to produce ethanol than the energy we derive from ethanol. If it wasn’t a subsidy program, why would we do it?
The subsidy is paid at the blending of gasoline. It is paid regardless of the source. If we eliminated the tariff, the subsidy would still be paid, but we would be promoting the foreign import over domestic production without the tariff.
It costs 65% more energy to produce ethanol than the energy we derive from ethanol.
That has been proved false multiple times.
I am not a fan of the subsidy. But as long as we have it, the tariff is needed so we are not subsidizing foreign production.