Senators Urged to Extend Advanced Ethanol Initiatives

Cindy Zimmerman

Advanced ethanol producers are urging a Senate subcommittee to extend key cellulosic ethanol tax provisions set to expire at the end of 2012.

RFA AECWith the Senate Finance Subcommittee on Energy, Natural Resources, and Infrastructure holding a hearing this week on expired and expiring energy tax incentives, the Advanced Ethanol Council (AEC) sent a letter to Chairman Jeff Bingaman (D-NM) and Ranking Member John Cornyn (R-TX) outlining the importance of two critical tax incentives.

“The Cellulosic Biofuels Producer Tax Credit (PTC) and the Special Depreciation Allowance for Cellulosic Biofuel Plant Property are vital to the ongoing development of the domestic advanced ethanol industry,” wrote Brooke Coleman, Executive Director of the AEC. “With gas prices soaring, it is increasingly important to diversify U.S. motor fuel markets with viable and competitive alternatives to gasoline, such as advanced ethanol, that will offer American consumers greater choice at the pump.”

Coleman notes that several billion dollars have already been invested in the development of advanced biofuels “with the expectation that Congress will stay the course with regard to its commitment to the industry” and that “allowing the PTC and accelerated depreciation allowance to expire runs counter to the goals set forth by Congress to foster the development of advanced biofuels under the Renewable Fuels Standard.”

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