BP sucks $600 million from taxpayers on ethanol credits

By Peter Cohn
Congress Daily

Ethanol Credits Have a Major Beneficiary in Big Oil Firms

BP could stand to reap federal tax credits approaching $600 million this year for blending gasoline with corn-based ethanol, making the British oil and gas giant one of the largest beneficiaries of the 45 cents-per-gallon ethanol incentive.

The credit expires Dec. 31, and the House Ways and Means Committee is preparing as early as next month to debate a “green jobs” bill eyed as a vehicle for an extension. Environmentalists are seizing on the generally low esteem the public holds for BP at the moment, with the future of the roughly $5 billion-a-year ethanol credit in the balance.

“Generally, we feel that after 30 years, it’s finally time for ethanol to stand on its own,” said Dusty Horwitt, senior counsel at the Environmental Working Group. “These massive handouts flow to oil companies like BP and only cement our dependence on environmentally damaging sources of energy … the other issue here, with BP, is that Congress has created this $5 billion-a-year energy program and taxpayers have little idea who’s getting the money.”

Ethanol backers say the BP argument is a straw man. “I don’t think that has any legs,” said House Agriculture Chairman Collin Peterson. He said the credit keeps ethanol competitive with oil until it can be marketed on a level playing field, including special blenders’ pumps at gas stations and boosting the limit on how much ethanol can be blended with gasoline.

Read full post at Congress Daily

3 responses to “BP sucks $600 million from taxpayers on ethanol credits

  1. I despise ethanol– and the power politics and votes it buys– fraudulent science. Ethanol wastes fed to cattle. If you like this article I wrote 2 years ago, I will put up how America is Being Transformed through environmental schemes just like this.


  2. amicus curiae

    cover ups cons and MONEY!
    the people who believed in Green being good, like myself have had a rapid and rude awakening seeing Agenda 21 used to the corporations and govts monetary benefit, while people go without, and the world goes to hell around us.
    ethanol IS a con, a waste of resources, no better for the environment, and in fact worse!
    the corn is GM so is the soy, the cattle suffer so does the soil, the crappy GM corn is used to poison human foodstuffs and the taxpayer funds the corn etc plantings then they fund the ethanol and who? gains/ yup the oil barons and the govt. along with MONopoly agri/chem and ADM etc
    Sucks Big Time!

  3. It helps their bottom line though and their stock price/dividend. And you are almost forced to give your life savings over to them in hopes to get a 10% return so you can retire from the rat race.

What do YOU think?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s