Senators John Thune (R-SD) and Amy Klobuchar (D-MN) along with a bipartisan group of senators have introduced the Ethanol Reform and Deficit Reduction Act.
The senate bill modifies the current Volumetric Ethanol Excise Tax Incentive (VEETC) to a variable tax incentive tied to the price of oil.
Currently, the tax incentive goes to ethanol blenders at .45 per gallon.
Other co-sponsors include Senators Chuck Grassley (R-IA), Mike Johanns (R-NE), Tom Harkin (D-IA), Richard Lugar (R-IN), John Hoeven (R-ND) Tim Johnson (D-SD), Jerry Moran (R-KS), Ben Nelson (D-NE), Al Franken (D-MN), Richard Durbin (D-IL) and Mark Kirk (R-IL).
The bill would also allocate funds saved through the updated ethanol tax incentive, to be used to expand fueling infrastructure through the vehicle of improved tax policies.
The legislation would reduce the federal deficit by $1 billion, end current ethanol subsidies on July 1, 2011, offer a three-year bridge safety net to protect ethanol jobs from oil price volatility, and enable large scale oil displacement through investing in infrastructure and advanced biofuels.
The bill would be an alternative to current ethanol tax credits due to expire at the end of this year.
The Senate will vote today on whether to proceed to a debate on a bill Sen. Tom Coburn (R-OK) bill to end the ethanol tax credits immediately
Good and Balanced Food and Fuel News!