I said this over at Lord Omlette’s !blog, but I figured I should repeat it over here on my blog:
Apparently, through inaction, Congress let the program to subsidize ethanol with Federal funds expire. So there was a little rejoicing on the Internet about that. I was sort of relieved to hear it, but I noticed that ethanol gasoline hasn’t jumped up by more than $.06 in the last month (and most of it was this week, based on the news about Iran wanting to block the Gulf). So I looked into it a little deeper.
It appears – according to the Nebraska budget for this year – that they shall be using a portion of federal money being given to Nebraska every year to improve infrastructure to replace the subsidies. So the state, using federal money, will be paying ethanol producers to continue making ethanol gasoline. So money that could be used to better maintain our railroads, highways and powerlines (including creating jobs that would do so) is actually going to ethanol producers to keep them going.
Hey, guess what? So is Kansas. And Iowa. And other states in the Midwest. Everyone who produces ethanol today.
I guess those ethanol bastards will not be giving up their money for ethanol so they can continue to sell blended gas for $3.15 or lower. Therefore, people in the Midwest will never leave ethanol until the Federal government puts a huge tax on ethanol blended gasoline that pushes it above $4.15.
So … this did nothing. And with elections just around the corner, I’m sure the subsidies will return in no time flat. Greedy motherfuckers.