WASHINGTON—The U.S. House of Representatives and Senate approved two separate measures that would reduce the federal government's support of corn-based ethanol by about $6 billion a year.
On June 16, the Senate voted 73-27 to approve an amendment to the Economic Development Revitalization Act that would immediately repeal a 45-cent per-gallon excise tax credit for ethanol blenders. Federal mandate requires the corn-based fuel to be mixed into the nation's gasoline to reduce fossil fuel use. The proposal also would end a 54-cent per-gallon tariff on imported ethanol.
In a separate measure, the House voted 283-128 to pass an amendment that would prohibit USDA from using appropriated funds for the installation of ethanol pumps and storage facilities.
Last year, lawmakers skepticism increased after U.S. producers of corn ethanol received a 1-year extension of a tax credit giving them nearly 12 cents of federal cash for every liter of corn ethanol they blend into gasoline, and a tariff of more than 14 cents per liter on imported ethanol.
