OPINION

Senators in Talks on Ethanol Compromise

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After a broad display of support for repealing ethanol subsidies in the U.S. Senate, lawmakers are in talks about a compromise that could preserve some form of an ethanol tax credit while providing a boost to companies that produce the fuel from sources other than corn.

Industry lobbyists are also pressing for incentives for infrastructure that would help ethanol producers expand market share, but preserving a tariff on imported ethanol is not a priority.

All eyes are focused on a group of senators who have floated ethanol-related proposals in recent weeks, including Sens. Dianne Feinstein (D., Calif.) and Tom Coburn (R., Okla.), who have put forward amendments that would immediately repeal the tariff as well as a tax break for blending ethanol with motor fuel.

The Senate voted 73-to-27 Thursday in favor of that plan, but the measure appeared to have little chance of becoming law, not least because it may violate a constitutional requirement that bills for raising revenue originate in the House.