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OPINION

Senators in Talks on Ethanol Compromise

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Senators in Talks on Ethanol Compromise
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.
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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.

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