Congress adjourned this month without extending the $6 billion annual tax subsidy for blending corn ethanol into gasoline and the steep import tariffs on the industry’s foreign competitors.
I can’t figure out whether the ethanol mandate also died. If not, it’s going to be weird to have a mandate that ethanol be blended into gasoline but no subsidy because the stuff wasn’t very economical to make even with the subsidy. While ethanol plants were going bankrupt more and more ethanol was being produced, so much that the U.S. was actually exporting the stuff. When government runs something these sorts of anomalies are to be expected. I would think that without the subsidy production will dry up, but if the government is still forcing it to be blended into gasoline it’s going to get interesting, Gasoline shortages because refineries aren’t allowed to produced gasoline that doesn’t contain ethanol, but there is no ethanol?
This one can’t be blamed on Obama. We have George W. Bush to thank for the ethanol boondoggle.
You can get gasoline for your small engines that does not contain ethanol. Check this out.