Let the VEETC Expire: Moving Beyond Corn Ethanol Means Less Waste, Less Pollution and More Jobs
Transitioning to low-carbon fuels is crucial to breaking America's dependence on oil and curbing global warming. But while some biofuels reduce pollution, others pollute more than the oil they replace. Unfortunately, the biggest government incentive program for biofuels -- the Volumetric Ethanol Excise Tax Credit (VEETC) -- fails to differentiate between biofuels, and has wasted $20 billion taxpayer dollars subsidizing a polluting corn ethanol industry. By subsidizing any type of ethanol, the VEETC comes at the expense of supporting clean energy technologies like wind, solar, and advanced biofuels -- made from sustainable crops like willow -- that create more green jobs and far less pollution. Congress is considering a 5-year extension of the VEETC that would cost taxpayers $31 billion. NRDC urges Congress to let the VEETC expire and replace it with a smarter, cheaper, and greener biofuels tax credit that rewards real environmental performance.