(15/01/07) Ethanol Legislation

A number of new ethanol bills have been introduced (summary below). 

Permanent Ethanol Tax — Congressmen Earl Pomeroy (D-ND) and Kenny Hulshof (R-MO) have introduced the “Renewable Fuels and Energy Independence Promotion Act” which would make permanent the biodiesel and ethanol tax incentive and the small agri-biodiesel producer and small ethanol producer credits. Congressman Pomeroy said, “We must do everything we can to encourage the production of renewable fuels as our nation strives for energy independence. Making this tax credit for biodiesel and ethanol permanent is a critical component of that effort.” The biodiesel tax credit expires in 2008 and the ethanol tax credit expires in 2010.

 

The Bio Fuels Security Act by Senators Tom Harkin (D-IA), Dick Lugar (R-IN) Barack Obama (D-IL), Joe Biden (D-DE), and Byron Dorgan (D-ND). This legislation would increase the Renewable Fuels Standard (RFS) to 60 billion gallons of ethanol and biodiesel by 2030. The current RFS is 7.5 billion gallons by 2012. The bill would require large oil companies to install E85 pumps at their stations resulting in approximately 50% of all major brand gasoline stations nationwide having E85 pumps available within a decade. 

 

The American Fuels Act by Senators Barack Obama (D-IL), Dick Lugar (R-IN), and Tom Harkin (D-IA) would increase the production of cellulosic biomass ethanol to 250 million gallons by 2012; require 2 billion gallons of alternative diesels to be mixed into the 40 billion gallon annual national diesel pool by 2015; provide automakers with tax incentives to produce additional Flexible Fuel Vehicles (FFVs); and a short term 35 cents per gallon tax credit for E-85 fuel. 

 

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