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Published May 05, 2011, 08:50 AM

Klobuchar, Franken Back End to Ethanol Subsidies

Minnesota Democrats Amy Klobuchar and Al Franken are among a bipartisan group of U.S. senators backing a bill to eventually end tax subsidies for ethanol producers.

By: Associated Press,

MINNEAPOLIS (AP) — Minnesota Democrats Amy Klobuchar and Al Franken are among a bipartisan group of U.S. senators backing a bill to eventually end tax subsidies for ethanol producers.

A coalition of ethanol industry groups supports the bill that would gradually reduce the amount of ethanol subsidies over the next five years. One tax credit provides oil companies an incentive to blend ethanol with gasoline and ensure market access. Savings from reducing and ending the subsidies would be applied to the budget deficit for now.

The Star Tribune reports (http://bit.ly/jNL6fD ) Klobuchar wants to eventually use the savings for the next generation of biofuels.

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