An ethanol deal has been reached between a bipartisan group of United States Senators in which they have agreed to end the Volumetric Ethanol Excise Tax Credit as of July 31, 2011. The compromise will shift the funds saved from ending the tax credit towards federal deficit reduction, blender pump infrastructure and advanced biofuel tax credits.
The deal stems from Senators John Thune and Amy Klobuchar’s Ethanol Reform and Deficit Reduction Act and will put $1.3 billion towards the federal deficit and $668 million towards ethanol blender pump infrastructure.
“After productive discussions with industry stakeholders over the past several weeks, we have reached a bipartisan solution that reduces the federal deficit and modifies current biofuels policy without pulling the rug out from under American renewable energy producers,” said Thune. “Domestic biofuels production in South Dakota and throughout the country continues to play an important role in reducing our nation’s dependence on foreign oil and creating American jobs. I look forward to moving our bipartisan plan through both the Senate and the House of Representatives.”
Senator Thune has been a longtime supporter of ethanol and his efforts do not go unnoticed with his work in shaping the industry’s future.
“I thank Senator Thune for his work in crafting a bipartisan path forward for the ethanol industry,” said Lisa Richardson, Executive Director of South Dakota Corn Growers Association. “Senator Thune continues to fight for rural America. With the significant budgetary challenges facing our country, it is important that the ethanol industry in South Dakota has common-sense policies in place to keep the biofuels industry moving forward. The enhanced blender pump tax credit will help give access to the market place, and the extended small producer tax credit will help our farmer-owned plants compete against foreign oil imports. We appreciate the work of Senator Thune and thank him for his continued support of agriculture producers in South Dakota.”