Ethanol Legislation Introduced

Washington, Mar 25 - Washington, D.C. – Joined by advocates of America's renewable fuels industry, Congressman Earl Pomeroy and Congressman John Shimkus unveiled legislation that would extend tax incentives that are critical to the nation's ethanol industry and the preservation of hundreds of thousands of jobs.
The bipartisan Pomeroy-Shimkus bill would extend the current Volumetric Ethanol Excise Tax Credit (VEETC), the Small Ethanol Producers Tax Credit and tariff on imported ethanol for five years.　 In addition, it will extend the Cellulosic Ethanol Production Tax Credit for three years.

Industry experts say allowing the incentives to expire would deal a heavy blow to America's home-grown fuel industry. A recent study warned that if the VEETC credit is allowed to expire at the end of this year it would cost 112,000 jobs and reduce domestic ethanol production by 38 percent. This loss of production would be made up for with imported fuels.

"At a time when our economy is struggling, we cannot afford to let these tax incentives expire and stymie the growth we have seen in our ethanol industry," Congressman Pomeroy said. "This is a bipartisan bill that will promote not only economic growth, but also the transformation of our energy industry from one that is reliant on foreign oil to one that is based on energy that's grown in farm fields in the heartland of America."

"I have been a long-time supporter of renewable fuels," Congressman Shimkus said. "Extending the ethanol and cellulosic tax credits helps give much needed certainty to the industry and will continue to help our nation’s energy security."

"Allowing the tax incentives for ethanol to expire is simply not an option," said RFA President Bob Dinneen. "Failure to extend these incentives would force 112,000 Americans out of their jobs and shutter nearly 2 out of every 5 ethanol plants operating today. Long term extensions of these important incentives are good policy that encourages investment in current and next generation ethanol technologies. Reps. Pomeroy, Shimkus and their colleagues are showing important leadership in driving America toward a more independent, sustainable energy future. I encourage all Members to follow their lead, relying on American farmers and American ingenuity, and allow our domestic renewable fuels industry to continue its evolution."

"Without the tariff, American taxpayers will be allowing foreign-subsidized ethanol to subvert American companies and American workers. And it would do nothing to end our dependence on foreign energy. It would replace our nation’s addiction to foreign oil with dependence on foreign ethanol – and not make our nation one bit more energy secure," said Tom Buis, CEO of Growth Energy, which released a study yesterday showing that if the tariff were to lapse, steep job losses and economic declines would follow over a 10-year period, with single-year high job losses of more than 160,000 and single-year economic losses reaching a high of more than $39 billion.

"NCGA applauds the work Congressmen Pomeroy and Congressmen Shimkus have done to introduce The Renewable Fuels Reinvestment Act," NCGA President Darrin Ihnen, a grower from Hurley, S.D., said.　 "The extension of VEETC would contribute to energy independence, create and secure thousands of jobs in rural America and allow for a stronger agriculture sector."

Source: pomeroy.house.gov