U.S. mulls ending ethanol import tariffs

Administration hoping to alleviate supply crunch ahead of driving season

WASHINGTON – The Bush Administration is considering lifting import tariffs on ethanol in a bid to alleviate any supply crunch of gasoline ahead of the peak summer demand driving season, Energy Secretary Samuel Bodman said Thursday.

“It’s something the administration has considered and will continue to consider,” Bodman told reporters, after a meeting with his counterparts from Canada and Mexico.

He conceded, however, that the power to actually lift the tariffs is out of the administration’s hands. That authority lies with Congress, where any proposed policy changes to the ethanol import tariff scheme could face a huge challenge from key Republican leaders from farm states, particularly Senate Finance Committee Chairman Charles Grassley, R-Iowa., who have strongly opposed lifting the 54 cents a gallon tariff on ethanol imports from countries such as Brazil.

Taking action is largely a Congressional matter, Bodman said, although he noted that President George W. Bush wants lawmakers to seriously consider legislative proposals that would improve the ethanol supply outlook.

AP