Brasher: Deficit worries stall biofuel incentives

Washington, D.C. — Worries over the federal budget deficit are raising concerns in the biofuels industry about the future of its existing subsidies and chances for getting new incentives.

Congress must renew the 45-cent-per-gallon tax credit for ethanol or else the subsidy will expire at the end of the year. At the same time, the industry is seeking subsidies to install new pumps at service stations and fund the development of biorefineries that can make biofuels from crop residue and other new feedstocks.
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