LEGISLATIVE NEWS
May 6, 2008
Response from farm state Senators to today's request by McCain and other Senate Republicans asking the EPA to review Ethanol Mandates...Read full story below
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House and Senate farm bill leaders appear to have reached agreement today on the main elements of a new Farm Bill. Details are expected to be presented to all Farm Bill conferees on Monday. The new 5-year Farm Bill would provide an additional $4 billion for conservation programs -- including $1.1 billion for the Conservation Security Program -- and $10.361 billion for domestic and international food aid programs. The agreement also includes a new disaster program, but cut $250 million from the planned $4 billion funding.
As part of the overall agreement, negotiators reached a deal on a tax package favored by the Senate in return for more money for domestic and international food aid, a priority for the House, particularly Speaker of the House Nancy Pelosi (D-CA). Farm Bill negotiators agreed to reduce the volumetric ethanol excise tax credit (VEETC) from 51 cents to 45 cents, and to extend the secondary ethanol tariff. The secondary ethanol tariff will be reduced (from 54 cents to 45 cents) to line up with the decrease in VEETC. The secondary ethanol tariff will be extended, but it is as yet unclear how long the extension of the tariff will be. Further, the tax package closes the duty drawback loophole for imported ethanol that allows major U.S. petroleum companies to claim duty drawback on jet fuel and other petroleum products to offset the duties paid on imported ethanol. The tax package includes a new production tax credit for up to $1.01 per gallon of cellulosic ethanol available through the end of 2012. An extension of the biodiesel tax credit, which expires at the end of 2008, will not be included in the Farm Bill tax package.
April 14, 2008
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