Senators John Thune, R-S.D., and Amy Klobuchar, D-Minn., have introduced the Ethanol Reform and Deficit Reduction Act, which will switch the current ethanol tax incentive, Volumetric Ethanol Excise Tax Credit, to a variable tax incentive tied to oil prices and make funds saved by that transformation available to expand ethanol fueling infrastructure. This would be done by improving tax policies available now for blender pumps.
The Renewable Fuels Association applauds the introduction of the bill that also will extend current tax incentives for the next generation of ethanol technologies using cellulosic and other feedstocks.
"This is thoughtful, responsible legislation that addresses the need for sound budget policy with progressive and innovative strategies for creating jobs and ending America's addiction to imported oil," RFA President and CEO Bob Dinneen said. "The approach stands in stark contrast to others that would seek to end America's efforts to replace imported oil with domestically-produced renewable fuels like ethanol."
A large group of Senators from both sides of the aisle have signed on as sponsors of the bill. Dinneen says America's entire ethanol industry supports the effort. The bill, if passed, would take effect on July 1.
Growth Energy also supports the legislation to reform and reduce the current ethanol policy to save money for consumers at the pump, reduce U.S. dependence on foreign oil and promote growth of the nation's ethanol industry. Growth Energy CEO Tom Buis says the legislation being proposed is a fiscally-responsible bill that reforms the ethanol tax policy in a way that creates U.S. jobs among other things. He urges Congress to pass the bill that he says ultimately provides both near and long-term solutions to higher gas prices and the unwanted influence of OPEC on the nation's economy.
National Corn Growers Association President Bart Schott says NCGA appreciates the work of the Senators who have crafted the Ethanol Reform and Deficit Reduction Act. Schott says this legislation will help provide certainty for the future and strengthen the ethanol industry over the next several years. He says the legislation also will protect thousands of jobs, which is of great importance to rural America. Schott emphasizes the legislation comes at a time when the ethanol industry is trying to reform.