Food, green groups call Senate ethanol plan a mixed bag

A coalition of groups that oppose ethanol gave a mixed review Thursday to a new Senate plan to kill a multibillion-dollar tax break that benefits ethanol producers while extending other biofuels incentives.

The groups issued a statement in response to the compromise that Sens. Dianne Feinstein (D-Calif.), John Thune (R-S.D.) and Amy Klobuchar (D-Minn.) floated Thursday morning.

"We appreciate Sen. Feinstein’s tireless work on this important issue and continue to support an immediate end to ethanol subsidies. We are encouraged that the agreement ends the existing ethanol tax credit for conventional ethanol; however, we are concerned about provisions that expand support for ethanol infrastructure. Our goal has always been to eliminate all subsidies for conventional ethanol, and we will continue to work to ensure their end," the coalition stated.

The strange-bedfellows coalition includes livestock and food industry groups (such as the American Meat Institute, the American Frozen Food Institute and the National Chicken Council), as well as environmental groups (such as Friends of the Earth and the National Wildlife Federation), the conservative Americans for Prosperity and others.

Ethanol industry groups were largely supportive of the plan, which comes at a time that political support for industry subsidies is eroding.

"This is not the perfect compromise, but it does demonstrate the willingness of American ethanol producers and advocates to do their part to address budget concerns while not sacrificing the progress and evolution of the industry," said Bob Dinneen, CEO of the Renewable Fuels Association, a major ethanol trade group.