Ethanol industry applauds US Senate for saving incentives

June 15, 2011

The ethanol industry yesterday praised the U.S. Senate for voting down an amendment by Senator Coburn (R-OK) to repeal ethanol tax incentives, including the Volumetric Ethanol Excise Tax Credit (VEETC) or the “blenders’ credit” by a vote of 59 to 40.

American Coalition for Ethanol (ACE) Executive Director Brian Jennings said the vote sends the “right message” to the American public.

“This vote is a major victory for the biofuels industry and American consumers and a setback for those clinging to our status-quo dependence on oil. It proves political stunts aimed at ethanol won’t be tolerated in the U.S. Senate. Now we can focus on continuing our work with the White House and both chambers of Congress to support meaningful and responsible legislation to reform ethanol policy, such as S. 1185, the Ethanol Reform and Deficit Reduction Act, introduced by Senators Thune, Klobuchar, and many others this week,” Jennings said.

Jennings added that ethanol supporters should also be praised for the work that they did in defeating Senator Coburn’s amendment.

“ACE grassroots members from around the nation took the initiative to make phone calls and send emails to Senate offices, making a persuasive case that this vote was important and could make a difference at the pump and in the pocketbook. We thank our members for their efforts and we urge them to stay involved as these discussions continue to develop in the months to come,” Jennings said.

Jeff Broin, Chairman and CEO of the world’s largest ethanol producer, POET, said the ethanol tax credit had been responsible for building America’s “most successful renewable fuel into 10 percent of our gasoline supply”.

The decision of Congress to preserve the credit was a “bridge to meaningful reform”, showing that America recognizes the importance of domestic, renewable fuels, he said.

Broin said: “Over the years as the tax credit has declined, we have been able to improve our efficiency and stay competitive with gasoline. Now it is time for the ethanol industry to take the next step in competing with oil. That can only happen if ethanol is allowed greater access to the fuel market.

“We must transition away from the tax credit and make a short-term investment that will reap long-term rewards. The expansion of flex pumps, dedicated ethanol pipelines and Flex Fuel Vehicles would create a competitive market between ethanol and gasoline that would lower prices at the pump.”