US farm state senators offer bill to extend ethanol tax credit

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, Apr. 20 -- US senators from agricultural states introduced legislation on Apr. 20 that would extend the federal ethanol tax credit through 2015. Failure to do so would cost 112,000 jobs nationwide and reduce domestic fuel ethanol production by 40%, they maintained.

Sen. Charles E. Grassley (R-Iowa), the Finance Committee’s ranking minority and the bill’s primary sponsor, said the expiration of a separate biodiesel tax credit at the end of 2009 has cost 29,000 jobs and put 23,000 more at risk. “We can’t risk a repeat performance with ethanol, where 112,000 jobs are at stake,” he said.

Grassley added that the US already provides duty-free access to some ethanol imports under the Caribbean Basin Initiative, “but the CBI cap has never once been fulfilled,” he said, adding, “In fact, last year, only 25% of it was even used by Brazil and other countries.”

Senate Budget Committee Chairman Kent Conrad (D-ND), a cosponsor of the bill, said, “Our country is in serious danger because of skyrocketing energy costs. We must be committed to coming together to less our dependence on foreign oil, while aggressively pursuing alternative sources of energy such as biofuels. Extending these tax credits is a step in the right direction.”

They said the bill would extend by 5 years until the end of 2015 the current 45¢/gal volumetric ethanol excise tax credit and the 10¢/gal small ethanol producers’ tax credit, both of which are scheduled to expire on Dec. 31. The measure also would extend by 3 years the $1.01/gal cellulosic biofuel producer tax credit, currently set to expire on Dec. 31, 2012, and extend by 5 years the ethanol tariff, which is scheduled to expire at yearend.

Other Senate cosponsors include Mike Johanns (R-Neb.), Tim Johnson (D-SD), Ben Nelson (D-Neb.), and John Thune (R-SD). US Reps. Earl Pomeroy (D-ND) and John Shimkus (R-Ill.) introduced a similar bill in the House on Mar. 25.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

White House eyes steps to curb oil, gas methane emissions

03/29/2014 The White House announced additional steps to reduce methane emissions from oil and gas operations as part of a broader strategy. They included reg...

Ethane supply secured for proposed W.Va. ethylene cracker

03/28/2014 Brazil-based Odebrecht SA subsidiary Odebrecht Oil & Gas SA has let a contract to Antero Resources Inc. to become the anchor ethane supplier fo...

Ineos lets contract for Grangemouth ethane terminal

03/28/2014 Ineos Europe AG, Switzerland, said it has reached the latest milestones in its $500 million survival plan to import US shale gas to its 210,000-b/d...

Maintenance underway at Jamnagar refinery

03/27/2014 Reliance Industries Ltd. (RIL) has shut down one of three paraxylene units for planned maintenance at its 660,000-b/d Jamnagar refinery at Gujarat,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected