In the US, at the end of 2010 Congress extended the ethanol tax credit (VEETC) of $0.45/gal. for one year with the clear message to the industry and lobby groups that it wanted a long-term solution to be passed and implemented by the end of 2011. Following are some of the policy options that are being considered in 2011:
- Continue the 45 cent/gallon subsidy and the import tariff as at present
- Shift the subsidy from blender to biofuel producer
- Subsidy that varies with the price of crude oil or gasoline
- Subsidy based at least in part on performance in reducing GHG
- Subsidy based on energy content of the biofuel
- Subsidy that is applied only for the quantity of biofuel in excess of the RFS
- Eliminate the subsidy and the import tariff, and use funds for other purposes
- Combinations of these options
"Description of 2011 Biofuels Policy Alternatives,"
Global Policy Research Institute (GPRI) Policy Briefs:
1, Article 1.
Available at: http://docs.lib.purdue.edu/gpripb/vol1/iss1/1