WASHINGTON, DC – Today, Growth Energy endorsed a bipartisan letter sent to the leaders of the Senate by Sens. Kent Conrad (D-N.D.) and Charles Grassley (R-Iowa), urging Congress to extend the ethanol tax credits and tariff provisions that are set to expire at the end of the year to prevent tax increases at the pump and economic uncertainty in the market.
In the letter Sens. Conrad and Grassley, along with thirteen other Senators wrote, “Allowing the provisions to expire or remain expired would threaten jobs, harm the environment, weaken our renewable fuel industries, and increase our dependence on foreign oil.”
The ethanol tax credits and ethanol import tariff expire at the end of this year. Economic analyses show that letting the tax credits expire would be equivalent to raising taxes on American drivers. If the Volumetric Ethanol Excise Tax Credit (VEETC) is allowed to expire, drivers will face a 4.5 cent tax increase on every single gallon of E10 (90 percent gasoline, 10 percent ethanol) that they purchase. Increased fuel prices will further harm our nation’s already struggling economy.
Growth Energy CEO Tom Buis noted that as long time veterans on the tax writing Finance Committee, Sens. Conrad and Grassley play a critical role in the energy debate.
“We commend these senators for their efforts to ensure a cleaner, more secure energy future for America,” said Buis. “The current ethanol tax incentives have played a critical role in the development of the ethanol industry in the United States and reducing our dependence on foreign oil.”
Buis added that the ethanol industry can do much more for our economy and environment with greater access to the market.
“Growth energy has proposed reforming ethanol policies in our fueling freedom plan and we stand ready to work with Congress and the Administration to invest in ethanol infrastructure. But, this investment won’t happen overnight. In the near-term, an extension of the ethanol tax incentive and the tariff will stabilize the marketplace, provide added certainty and give Congress the opportunity to consider longer term solutions next year.”
The letter was signed by a total of fifteen senators including:
Kent Conrad, United States Senator
Charles Grassley United States Senator
Amy Klobuchar, United States Senator
John Thune, United States Senator
Al Franken, United States Senator
Christopher Bond, United States Senator
Mike Johanns, United States Senator
Mark Kirk, United States Senator
Claire McCaskill, United States Senator
Sam Brownback, United States Senator
Byron Dorgan, United States Senator
Tom Harkin, United States Senator
Ben Nelson, United States Senator
Tim Johnson, United States Senator
Debbie Stabenow, United States Senator
The full letter can be read here.