Former Senator John Edwards (D-N.C.) -- now a presidential hopeful -- has just published his latest energy plan. One important plank of that plan foresees the nation producing (not just consuming, which would allow for imports) 65 billion gallons a year of ethanol by 2025. ("I'll meet your bid for 2030, Barack, and raise it by five billion!")
If the 51 cents a gallon volumetric ethanol excise tax credit (VEETC) is extended beyond the end of 2010 -- as most commentators and even the USDA expect will happen -- here's what the cumulative cost to the U.S. Treasury would be from 2007 through 2025, assuming straight-line growth:
Almost $350 billion (=$0.51 x 19 x [7+(65-7)/2]).