Under an agreement announced by Sens. Dianne Feinstein, D-Calif., John Thune, R-S.D. and Amy Klobuchar, D-Minn., the ethanol tax credit would expire July 31 instead of Dec. 31, producing a savings of roughly $2 billion, the Minnesota Star Tribune reported Thursday.
However, in a compromise, not all of the saving will go for deficit reduction; $668 million is to be allocated to support other renewable energy efforts such as plug-ins for electric cars, natural gas development and efforts to produce ethanol from sources other than corn.
The credit granted ethanol refiners had helped support a $3 billion industry in Minnesota.
Minnesota's Klobuchar, who co-authored three other pieces of legislation that would have phased out the credit over four or five years, said in the end a compromise was inevitable.
The $668 million for other renewable fuel efforts is $300 million less than what she sought, she said.
"We had $1 billion going for deficit reduction [and $1 billion going for renewable energy initiatives]," Klobuchar said, calling the compromise a "shared sacrifice."
"Do I think we're going to have to explain it to people?" Klobuchar asked. "Yes, because it was so complicated. But was that a reason to walk away from it and just let the tax credit end? No. It was the best thing to do for our state and for our country."
Notable deaths of 2014 [PHOTOS]