BusinessWeek reports that the U.S. House Ways and Means Committee is considering a 20 percent reduction in ethanol subsidies, from the current 45 cents to just 36 cents per gallon of ethanol. The reduction would help cut government spending at the expense of ethanol refiners and blenders across the nation. The pressure to reduce the subsidy comes because the Committee is faced with the challenging task of extending the ethanol credit before it expires December 31. The proposal to reduce the credit is a compromise to please members of the committee who would rather see it vanish altogether.
[Source: BusinessWeek | Image: Jan Tik – C.C. License 2.0]