April 20, 2010
Conrad, Grassley introduce VEETC extension (Ethanol Producer Magazine)
Almost a month after Reps. Earl Pomeroy, D-N.D., and John Shimkus, R-Ill., presented legislation to extend ethanol tax credits and the ethanol tariff, Sens. Kent Conrad, D-N.D., and Chuck Grassley, R-Iowa have proposed a Senate version of the ethanol tax credit extension. Like the House bill, Conrad and Grassley’s companion bill to HR 4940, the “Renewable Fuels Reinvestment Act,” proposes an extension of the credits through 2015. In a statement issued regarding the reasoning for the bill, Conrad noted the importance of providing an alternative to foreign oil, pushing economic growth in the U.S. and boosting rural economies.
“Our country is in serious danger because of skyrocketing energy costs,” Conrad said. “This growing crisis demands urgent action. We must be committed to coming together in a bipartisan way to lessen our dependence on foreign oil, while aggressively pursuing alternative sources of energy such as biofuels.”
In a statement of his own, Grassley pointed out the consequences associated without a renewal of the tax credits by citing the lapse of the biodiesel tax credit, which expired at the end of 2009. “We can’t risk a repeat performance with ethanol, where 112,000 jobs are at stake,” Grassley said.
Joined on the legislation by Sens. John Thune, R-S.D., Tim Johnson, D-S.D., Ben Nelson, D-Neb. and Mike Johanns, R-Neb., Grassley also said, “the U.S. already provides generous duty-free access to imported ethanol under the Caribbean Basin Initiative, but the CBI cap has never once been fulfilled. In fact, last year, only 25 percent of it was even used by Brazil and other countries.”
The Renewable Fuels Association President Bob Dinneen said the leadership by Conrad, Grassley and the other co-sponsors of the bill shows a keen understanding of the importance for a domestic ethanol industry. “Tax incentives aiding the expansion of America’s ethanol industry are sound public policies by any economic, environmental or energy measures,” Dinneen said, adding, “Passage of their bill would ensure that the evolution of American ethanol technologies continues.”
Citing the need for foreign oil independence and the economic impact of the extension, Growth Energy also commended the Senate bill. “Extending these measures will ensure job growth and economic development across the entire country,” Tom Buis, CEO of Growth Energy said. “All while reducing our dependence on foreign oil and clearing our skies.” Buis added, “We commend Senators Grassley and Conrad for recognizing the need for this vital extension. Extending the tariff and the tax credit will ensure a cleaner, more secure future for America.”
