Senate holds up energy package

Senate Republicans on Thursday blocked an energy tax package that includes new incentives for cellulosic ethanol and other biofuels.

But Iowa Sen. Charles Grassley, who supports the tax provisions, predicted that they would eventually get through Congress.


Grassley is the senior Republican on the Senate Finance Committee, which drafted the tax package. It includes a new 50-cent-per-gallon tax credit for ethanol made from crop residue, wood chips and other sources of plant cellulose.

A move to cut off debate on the tax package fell three votes short of the 60 that were needed. The measure would tax the oil industry an extra $29 billion to fund incentives for renewable energy. Republican opponents said the legislation could increase gasoline prices.

Des Moines Register