US ethanol groups praise new legislation seeking to promote industry versus imported oil
A pair of ethanol organizations praised new legislation from the US Congress, claiming that such policies are needed to compete with imported oil.
The Advanced Ethanol Council (AEC), compromised of 10 of the world's leading advanced ethanol producers, welcomed new Senate legislation from Chuck Grassley (R-Iowa) and a bipartisan group of senators that it says would transform current ethanol tax policy.
The legislation, the Domestic Energy Promotion Act of 2011, would transition the current blender's credit to a variable tax credit based on the price of oil, improve tax incentives for blender pumps and ethanol refueling infrastructure, and extend crucial tax incentives for advanced and cellulosic ethanol production that are set to expire at the end of the 2012.
"The proposal strikes the right balance between providing savings to the taxpayer, developing the infrastructure necessary to incorporate growing volumes of ethanol from all feedstocks, and extending the incentives that are critical to the development of next generation ethanol fuels,” said Brooke Coleman, executive director of the AEC.
“The tax incentives for advanced and cellulosic ethanol contained in Senator Grassley’s proposal will help our industry put steel in the ground and create jobs and economic activity that cannot be exported,” Coleman continued.
“They are the type of tax incentives already provided for the fossil fuels industry, and extending these incentives helps begin the process of leveling an uneven playing field with gasoline and other petroleum fuels.
“Most importantly, this proposal establishes a durable and consistent tax framework for our industry, which in turn will facilitate substantial investment in domestically-produced advanced ethanol fuels and allow our sector to reach its full potential.”
On the House side, US trade group Growth Energy applauded a bill introduced by the House Energy Working Group that it says would “help the US wean itself off imported oil”.
“ As we have said before, to address our nation’s energy crisis, we must consider every option on the table. A commitment to invest in renewable fuel infrastructure like flex-fuel pumps and flex-fuel vehicles, which will give consumers access to fuels other than oil, is essential to securing our economic and energy future,” said Growth Energy CEO Tom Buis.
“At a time of near-record gas prices and continued volatility in world oil markets, America’s growing production of domestic alternative energy sources, like ethanol, is creating jobs, keeping gasoline prices down, and reducing our nation’s dependence on imported oil.
"The proposal announced today by Tim Waltz (D-Minn.) would ensure that we continue to invest in the clean, American fuels that will help us reach our nation’s energy independence goals.”
The latest ethanol bills were introduced in the same week that the US Senate is considering a repeal of tax breaks for the five largest oil companies. A vote on that is scheduled for next week.
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