Senate ethanol battle heats up with dueling bills

“When crude oil is more than $90 a barrel, there will be no blenders’ credit. When crude oil is $50 and below, the blenders’ credit will be 30 cents. The rate will vary when the price of crude is between $50 and $90 a barrel,” according to Grassley’s office.

The bill would also extend through 2016 tax credits for installing ethanol infrastructure at gas stations, but modify them somewhat.

Credits for cellulosic ethanol producers and the depreciation allowance for cellulosic biofuel plant property would also remain through 2016, while the import tariff would continue at reduced levels.

“Affordable energy is a major concern for Americans, and Congress needs to keep energy security on the front burner. Now more than ever, it’s time to ramp up production of traditional energy sources here at home and to expand alternative fuels and renewable energy sources,” Grassley said in a statement on the bill, which also drew praise from ethanol industry trade groups.

The other sponsors are Sens. Tom HarkinTom HarkinThe Hill's 12:30 Report Distance education: Tumultuous today and yesterday Grassley challenger no stranger to defying odds MORE (D-Iowa), Mike JohannsMike JohannsFarmers, tax incentives can ease the pain of a smaller farm bill Lobbying World To buy a Swiss company, ChemChina must pass through Washington MORE (R-Neb.), Amy KlobucharAmy Jean KlobucharFacebook shifts strategy under lawmaker pressure Competition law has no place raising prices some say are ‘too low’ CNN to host town hall featuring Nancy Pelosi MORE (D-Minn.), Al FrankenAlan (Al) Stuart FrankenThe Hill's 12:30 Report The Hill's 12:30 Report John Oliver rips AT&T-Time Warner merger MORE (D-Minn.), Tim JohnsonTim JohnsonCourt ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit Former GOP senator endorses Clinton after Orlando shooting MORE (D-S.D.) and Ben Nelson (D-Neb.).

The bill comes a day after ethanol opponents Sens. Dianne FeinsteinDianne Emiel FeinsteinGun proposal picks up GOP support Gingrich: Banning rapid fire gun modification is ‘common sense’ House bill set to reignite debate on warrantless surveillance MORE (D-Calif.) and Tom CoburnTom Coburn-trillion debt puts US fiscal house on very shaky ground Al Franken: 'I make fun of the people who deserved it' The more complex the tax code, the more the wealthy benefit MORE (R-Okla.) united around a bill to end the blenders’ credit and the import tariff. They had previously offered competing plans. Co-sponsors include Sens. Ben CardinBenjamin (Ben) Louis CardinOvernight Cybersecurity: Equifax CEO faces outraged lawmakers | Dem presses voting machine makers on cyber defense | Yahoo says 3 billion accounts affected by 2013 breach Key Dem: Did Kushner use private emails to talk with foreign governments? Dem senator pitches ideas for gun control after shooting MORE (D-Md.) and Richard BurrRichard Mauze BurrTrump: Why isn't Senate looking into 'Fake News Networks'? Overnight Cybersecurity: Equifax security employee left after breach | Lawmakers float bill to reform warrantless surveillance | Intel leaders keeping collusion probe open Special counsel looking into dossier as part of Russia probe: report MORE (R-N.C.).

Feinstein argues the ethanol industry is awash in billions of dollars in unnecessary subsidies.

“Ethanol subsidies and tariffs sap our budget, they’re bad for the environment, and they increase our dependence on foreign oil. It’s time we end subsidies that we cannot afford and tariffs that increase gas prices,” she said in a statement Tuesday.

Feinstein’s office argues the blenders’ credit is unneeded given the national renewable fuels mandate ensures a market, and that the tariff increases reliance on oil imports by raising the price of imported ethanol.