CBO finds corn ethanol costs taxpayers nearly $2 a gallon in subsidies (on top of the price at the pump)

By Sasha Lyutse
Yesterday afternoon, the nonpartisan Congressional Budget Office (CBO) released its evaluation of the costs and benefits of federal biofuels tax credits, including the Volumetric Ethanol Excise Tax Credit (VEETC), the largest U.S. subsidy for renewable energy that goes almost entirely to corn ethanol. The release comes against the backdrop of a full court press by corn ethanol industry lobbyists to push Congress to extend the VEETC and a disappointing attempt by Senator Amy Klobuchar to attach a 5-year extension of the corn ethanol tax credit to a Senate energy bill ostensibly supporting renewable energy, which we discussed here and the NRDC Action Fund discussed here.