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Entries in Ethanol Subsidies (2)

Wednesday
Jan042012

Ethanol Industry Loses Its $6 Billion Subsidy; Gas Prices Likely to Rise

Jupiterimages/Thinkstock(WASHINGTON) -- It's a new era for the ethanol industry and not necessarily a good one.

Congress has allowed a 30-year subsidy to lapse, meaning the ethanol industry won't be getting its $6 billion tax credit in 2012.  That's good for taxpayers as long as they don't drive.

The end of the subsidy means that unleaded gas that is mixed with ethanol will probably rise four or five cents a gallon by as early as next week.

Industry analysts say that while production of the corn-based additive could be affected, the ethanol industry is strong enough to sustain itself without the $6 billion.

Copyright 2012 ABC News Radio

Thursday
Jun162011

Senate Votes to End Costly Ethanol Subsidies

Comstock Images/Thinkstock(WASHINGTON) -- The Senate on Thursday overwhelmingly voted to end subsidies for ethanol, which will abolish the industry’s 45- cent-per-gallon subsidy for ethanol blenders, which was due to expire at the end of the year.

By a vote of 73-27 the Feinstein, D-Cali.,-Coburn, R-Okla., amendment was adopted within the unrelated Economic Development Administration Reauthorization legislation. Thirty-three Republicans and 38 Democrats supported the amendment -- 14 Republicans and 13 Democrats voted against it.

The amendment, ending the 45-cent-per-galon subsidy given to refiners for blending ethanol into gasoline, saves nearly $6 billion per year and $3 billion this year alone.

Also voted on Thursday was a Sen. McCain, R-Ariz,. amendment that would block taxpayer dollars from funding ethanol blending pumps and storage infrastructure. That was ultimately not adopted, defeated by a vote of 41 to 59.

Copyright 2011 ABC News Radio







ABC News Radio