Minnesota legislative auditor proposes scrapping state ethanol subsidies

In Minnesota, a Legislative Auditor’s report on biofuel policies and programs recommended that the state’s decade-old ethanol producer payment program should be ended.

The audit report revealed that ethanol producers had received $92 million in subsidies while racking up $692 million in profits over a five-year period, and the report recommended that subsidies should be redirected in support of cellulosic ethanol or other greenhouse gas-reducing technologies. 20 ethanol plants in the state would be affected by a cessation of subsidy payments.

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