"We have a dangerous dependence on foreign oil. The time is right to expand our use of alternative sources of energy, including ethanol and biodiesel," Grassley said. "Iowa's farmers are ready to help America meet the growing need for domestic sources of energy."
The Renewable Fuels Standard that was included in the comprehensive energy bill mandates the minimum use of ethanol to 5 billion gallons per year by 2012. The energy bill must now be passed by the House and Senate. The bill will then be sent to the President for his signature.
"The ethanol industry has shown that it can withstand the growing demand for this fuel that will help improve air quality, strengthen national security, reduce the trade deficit, decrease dependence on foreign oil, and expand markets for agricultural products," Grassley said. "It's time to tap into renewable farm-ready resources."
Grassley also was the chief architect of a renewable fuels tax package that was included in the energy bill. The renewable energy tax package includes several of Grassley's longstanding priorities. These priorities include: an extension of the wind energy production tax credit; an income tax credit and excise credit for biodiesel fuel mixtures; an extension of the tax credit for the production of electricity from biomass; an expansion of the definition of an eligible small ethanol producer; and a production tax credit for electricity generated from agriculture animal waste.
Here is the text of a letter from the Coalition for a Renewable Fuels Standard endorsing the Renewable Fuels Standard and renewable energy tax package and encouraging passage of the comprehensive energy bill. The Coalition consists of 13 organizations.
Coalition for a Renewable Fuels Standard
November 17, 2003
| The Honorable Pete Domenici, Chairman Senate Energy and Natural Resources Committee 364 Dirksen Senate Office Building Washington, DC 20510 |
The Honorable Billy Tauzin, Chairman House Energy and Commerce Committee 2125 Rayburn House Office Building Washington, DC 20515 |
| The Honorable Jeff Bingaman Senate Energy and Natural Resources Committee 364 Dirksen Senate Office Building Washington, DC 20510 |
The Honorable John Dingell House Energy and Commerce Committee 2125 Rayburn House Office Building Washington, DC 20515 |
Dear Conferees:
The undersigned organizations have worked over the past several years to increase the productionand use of domestic, renewable fuels such as ethanol and biodiesel. We are writing today toenthusiastically endorse the Renewable Fuel Standard (RFS) and renewable energy tax provisions included in the conference report to H.R. 6, the Energy Policy Act of 2003.
We strongly support the bill's creation of a nationwide RFS that will gradually increase thecontribution of ethanol and biodiesel to our nation's fuel supply, such that 5 billion gallons of renewable fuels will be required by 2012. The RFS contained within H.R.6 is not only good for family farmers and rural America, but it will increase U.S. energy independence, protect our air and water quality, reduce greenhouse gas emissions, reduce oil imports, create jobs and strengthen homeland security through dispersed fuel production facilities across the country.
H.R. 6 also includes important renewable fuel tax provisions. The Volumetric Ethanol ExciseTax Credit (VEETC) ensures that renewable fuels will pay the full amount of user excise taxes levied to the Highway Trust Fund (HTF). When fully implemented, VEETC will generate more than $2 billion per year in additional HTF revenue for improvements to the nation's transportation infrastructure. H.R. 6 modifies the small ethanol producer tax credit to enable cooperatives to pass along the credit to their farmer owners. The bill also provides a new tax incentive for biodiesel that will stimulate production from both soybeans and other agricultural products, as well as from animal fats, while similarly protecting the Highway Trust Fund.
The RFS and fuel tax provisions included in H.R. 6 present an historic opportunity to promoteenergy independence through the increased production and use of domestic, renewable fuels in the U.S. fuel supply. Because of the importance of the RFS and the renewable energy tax provisions to a sustainable energy future, we urge a yes vote on final passage of H.R. 6.
Sincerely,
| Renewable Fuels Association American Farm Bureau Federation American Coalition for Ethanol National Grain Sorghum Producers National Sunflower Association American Corn Growers Association Women Involved in Farm Economics |
National Corn Growers Association American Soybean Association National Biodiesel Board National Farmers Union U.S. Canola Association Ethanol Producers and Consumers |