US Senate votes to kill $6bn federal ethanol subsidy

16 June 2011 19:54  [Source: ICIS news]

US Senate votes to kill $6bn federal ethanol subsidyWASHINGTON (ICIS)--The US Senate on Thursday voted to end a $6bn (€4.26bn) annual subsidy for corn ethanol.

In a 73-27 vote the Senate approved an amendment that would kill the 45 cent/gal taxpayer subsidy for ethanol blended into the nation’s gasolines.

The amendment also would end the 54 cent/gal tariff on US imports of foreign bio-ethanol, which has long protected domestic corn ethanol producers from competition.

With the vote, the bipartisan amendment was attached to a larger bill, S-782, the Economic Development Revitalisation Act, a small-business development measure.

That legislation was expected to pass in the Senate, but approval by the US House of Representatives is not certain with the anti-ethanol measure attached.

There is strong support in the House for the ethanol subsidy, which supports ethanol production and corn farms in more than a dozen US Midwestern states.

($1 = €0.71)

By: Joe Kamalick
+1 713 525 2653

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