May 16 Opponents of N.D. Ethanol Subsidies Seek to Refer Legislation

June 1, 2003

Opponents of an ethanol subsidy plan approved by the N.D. legislature this spring are seeking to put it to a vote. A group led by two men from the western part of the state submitted a petition to Secretary of State Al Jaeger, who has until May 27 to review it. The bill, signed by Gov. John Hoeven, would take effect July 1. It provides $1.28 million over the next two years in subsidy payments for new North Dakota ethanol plants, and $1.8 million for existing plants in Walhalla and Grafton. The subsidies would be financed by using 40 percent of registration fees on farm vehicles, and by lowering a farm tax refund for fuel used off the road. Muecke said that is one reason for the referral. "We're supposed to grow the corn for it, and the same time, we're supposed to foot the bill for it, too," he said.

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