By Ben Geman - 12/09/10 05:01 PM EST
Refiners and gasoline blenders currently receive a 45 cent-per-gallon credit for each gallon of ethanol mixed in, an incentive ethanol producers call vital to ensuring a robust market for the fuel. It is scheduled to expire at the end of the year.
Sen. Dianne Feinstein (D-Calif.) — who is among the lawmakers battling the credits — also told reporters that the deal contains an extension. She believes it is at the 45-cent level but was uncertain about the duration.
“Ethanol tax credits — that’s a problem. As far as I know they are in and they should not be,” she told reporters.
Continuation of the incentives would be a victory for ethanol producers and farm-state lawmakers, who have been battling a left-right coalition of lawmakers and interest groups trying to kill the credits.
This post was updated at 12:09 p.m.