The Governors' Biofuels Coalition is circulating a draft proposal to modify the ethanol tax-credit structure. In the draft, the coalition is proposing that Congress extend the expiring ethanol blender's tax credit for one year, roughly halve the 45-cent-per-gallon credit, provide incentives for biorefineries with fewer greenhouse-gas emissions and create programs to boost deployment of E85 and flexible-fuel vehicles. "These changes to the ethanol tax-credit structure represent a fiscally responsible way to modernize the tax and regulatory framework for the nation's ethanol industry," the coalition added.

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