WASHINGTON — The Senate voted down controversial legislation Tuesday meant to end $5.4 billion in federal ethanol subsidies.

Minnesota Sens. Amy Klobuchar and Al Franken opposed the legislation, which would have ended a 45-cent per gallon tax credit and a 54-cent per gallon tariff on imported ethanol at the end of the month instead of its current expiration at the end of the year. The bill failed 40-59.

Sen. Tom Coburn, R-Okla., proposed the amendment, which was identical to legislation offered by California Democrat Diane Feinstein. Before the vote, Feinstein had asked Coburn to withdraw the legislation and try to negotiate a deal with Klobuchar, who had offered an alternative bill.

Klobuchar’s legislation would have ended the per-gallon tax credit and used the savings to pay for new renewable fuel infrastructure as well as extend a series of tax credits related to the production of biofuels. Klobuchar introduced the legislation with South Dakota Republican John Thune and a bipartisan group of senators including Minnesota Sen. Al Franken. It did not receive a vote.

Devin Henry can be reached at dhenry@minnpost.com.

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2 Comments

  1. A note to Senators Klobuchar and Franken: We’re not going to make any real headway on the federal budget until people quit looking at savings in one area as a means of funding another.

  2. I think that Klobuchar’s ideas are good ones. Instead of never ending cash subsidies aiding producers, use one time money to build an environment in which the ethanol industry is more likely to thrive. The money would, as I understand it, largely be spent on the installation of “blender pumps” at gas stations. There are a lot of flex fuel vehicles out there who don’t have access to E85, I’m willing to bet…this could change that and increase actual market demand for ethanol rather than simply distorting the market through subsidies and tariffs. Oh my God, I sound like a Republican.

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