E2-Wire

Left-right Senate pair takes aim at ethanol subsidy

by Ben Geman - 03/09/11 4:06 PM ET

Coburn and Cardin, in announcing the bill, pointed to a recent Government Accountability Office report on duplicative federal programs.

The study noted other federal drivers of the ethanol market including the Renewable Fuel Standard — which mandates increasing ethanol use — that was expanded in a 2007 law.

“The ethanol tax credit and the renewable fuel standard can be duplicative in stimulating domestic production and use of ethanol, and can result in substantial loss of revenue to the Treasury,” GAO found, noting that the tax credit resulted in $5.4 billion in foregone federal revenue last year.

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