Today, Sen. Feinstein (D-CA) struck a deal with Sens. Klobuchar (D-MN) and Thune (R-SD) to eliminate the ethanol tax credit (and tariff). Unfortunately, they also agreed to provide further subsidies to the ethanol industry. Just a couple weeks ago, 73 Senators voted to end the tax credit and the tariff by July 1st. And the House voted overwhelmingly to not spend federal funds on blender pumps (in the Ag approps bill) – but that’s just what this proposal would do.

Taxpayers for Common Sense president Ms. Ryan Alexander commented on the deal:
“After 30 years, taxpayers have done enough to prop up companies like BP and Shell that cash in on the tax credit. It’s good that it’s ending, but we shouldn’t be providing more subsidies for blender pumps. That’s simply the cost of doing the ethanol business.”

Below is a release from the broad coalition of groups opposed to ethanol.

Coalition Statement on Ethanol Subsidy “Deal”

Contact: Brendan McLaughlin, Resource Media, 206-374-7795, ext. 108
Kelly Trout, Friends of the Earth, 202-222-0722

Today, Senator Feinstein announced a deal with Senators Klobuchar and Thune to end the Volumetric Ethanol Excise Tax Credit (VEETC) and the tariff on imported ethanol. VEETC provides ethanol blenders with $0.45 for each gallon of ethanol blended into gasoline and is due to cost $6 billion dollars this year. Recently, 73 Senators voted to end this credit by July 1st.

The deal between Senators Feinstein, Klobuchar and Thune also includes a three-year extension of the cellulosic production tax credit, a three-year extension of tax credits for ethanol and alternative energy fueling infrastructure, and a one-year extension of the small producer’s tax credit.

A coalition of diverse interests opposed to ethanol subsidies issued the following statement in response:

“We appreciate Sen. Feinstein’s tireless work on this important issue and continue to support an immediate end to ethanol subsidies. We are encouraged that the agreement ends the existing ethanol tax credit for conventional ethanol; however, we are concerned about provisions that expand support for ethanol infrastructure. Our goal has always been to eliminate all subsidies for conventional ethanol, and we will continue to work to ensure their end.”

ActionAid USA
American Frozen Food Institute
American Meat Institute
Americans for Prosperity
Clean Air Task Force
Clean Water Action
Dairy Producers of Utah
Environmental Working Group
Friends of the Earth
Milk Producers Council
National Black Chamber of Commerce
National Chicken Council
National Meat Association
National Restaurant Association
National Turkey Federation
National Wildlife Federation
Natural Resources Defense Council
Oxfam America
Southeast Milk Inc.
Taxpayers for Common Sense