I guess we'll get to see if last year's "Valero says ethanol subsidy not needed" works for the rest of the industry or if the big refiner will get a chance to pick up more assets on the cheap.
In a prior post I had suggested that we start rebuilding our stocks of corn. This won't do that immediately because of the Federal mandate to blend 13.95 billion gallons of renewable fuels into the gasoline supply.
So it's on to repeal of the mandate.
First up, Platts:
US senators say could announce deal on ethanol subsidies
US senators could roll out a proposal for ending billions of dollars in ethanol subsidies as soon as Thursday, two senators negotiating the measure said Wednesday.From The Hill's e2 Wire:
Speaking to reporters in the US Capitol Wednesday, Senator Amy Klobuchar, Democrat-Minnesota, said the deal would end about $2 billion worth of ethanol tax credits and direct the savings to reducing the federal deficit and funding an array of energy programs.
"It would be something that would allow us to put a major chunk of change into the debt and at the same time use some of the existing money to focus on things like cellulosic and blender pumps as well as [infrastructure] for electric cars," said Klobuchar, who declined to describe how the money would be divided.
The agreement could be included in a deal to raise the federal government's borrowing limit, or as an amendment to another tax bill, she said. ...MORE
A bipartisan group of senators developing a compromise proposal to eliminate a key ethanol tax break while extending incentives for renewable fuels could ink a final agreement as soon as Thursday, a Senate aide familiar with the discussions said.And from Politico:
Sens. Amy Klobuchar (D-Minn.) and John Thune (R-S.D.), both ethanol supporters, are working with Sen. Dianne Feinstein (D-Calif.), a critic of the fuel, on a plan to quickly end the credit of 45 cents for each gallon of ethanol blended into gasoline.
The proposal would use savings from the credit's repeal to boost support for cellulosic ethanol and blender pump infrastructure, among other things. The savings would also go toward reducing the deficit....MORE
A trio of senators should be able to reach a deal on ethanol subsidies by Thursday, a key Republican said.
"We should have something we will be able to report to you tomorrow about that," Sen. John Thune (R-S.D.) said Wednesday afternoon.
Thune has been in talks with fellow corn ethanol backer Sen. Amy Klobuchar (D-Minn.) and ethanol subsidy critic Sen. Dianne Feinstein (D-Calif.) about ending an existing tax credit for blending ethanol in gasoline but keeping alive for now other incentives for the gasoline additive."It needs to be worked on today," Thune said, adding he is optimistic that "we're going to have, I think, everybody signed off on some final details" by Thursday. "It's been dragging on for a long time," he added.
The three senators — along with ethanol subsidy foe Sen. Tom Coburn (R-Okla.) — started negotiations when 73 senators voted June 16 for an amendment from Feinstein and Coburn immediately repealing a 45 cent per gallon blender tax credit and a 54 cent per gallon tariff on imported ethanol set to expire at the end of the year.
“We’re close,” Feinstein said Wednesday, adding that “it’s possible” that lawmakers could reach a deal this week.
“We’d like to get it done this week,” Klobuchar said.
Coburn has since left the talks, arguing that no additional ethanol subsidies of any type are warranted....MORE