This seems to survive because it is popular with farm state voters

Debra Saunders:
Ethanol: bad for climate and pocketbook

A federal program, once launched, is impossible to kill. It doesn’t matter if the scheme wastes money. It doesn’t matter if the program doesn’t work. It doesn’t even matter if the program does the very opposite of what it is supposed to do. Every government program enters the world with an army of fairy godmothers prepared to fend off any effort to cut the cord. Hence, the staying power of ethanol.
...
The law mandating ethanol was the product of perceived scarcity of oil  and gas in the US.  That is clearly not the case anymore, yet the US keeps on subsidizing something that is not needed.

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