Senate bill would stop biomass crop subsidy

Reuters
By Charles Abbott
WASHINGTON Wed Dec 15, 2010 7:13pm EST

WASHINGTON (Reuters) - A mammoth government funding bill awaiting a Senate vote would cut off funding for a program that pays farmers to experiment with biomass crops.

Spending on the Biomass Crop Assistance Program, or BCAP, would be halted less than two months after the Obama administration unveiled rules for it.

The Agriculture Department, which runs BCAP, urged senators on Wednesday "to make the corrections necessary so there are resources to continue building a sustainable biofuels industry."

BCAP spending was estimated for $196 million this fiscal year, which ends on Sept 30. The Senate planned to vote on the $1.1 trillion bill on Saturday, with the House to act later.

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