Sen. Wyden proposes Clean Fuel Tax Credit

Source: By Ethanol Producer Magazine • Posted: Monday, May 8, 2017

Senate Finance Committee Ranking Democrat Ron Wyden (Ore.) and his colleagues introduced a clean energy tax reform package in early May that includes a proposal for a technology-neutral tax credit designed to encourage the development and production of advanced and cellulosic biofuels.

The Renewable Fuels Association commended the effort, saying it supports Sen. Wyden’s efforts to develop an energy tax policy that provides long term certainty and stability for the second generation ethanol industry, encourages the development of new biofuel technologies and promotes the production and use of greater volumes clean fuel in the United States.

“RFA and its members are truly thankful to Sen. Wyden for having the foresight and commitment to propose a clean energy package that encourages the development of a broad range of technologies to produce clean fuels in the U.S.,” said RFA President and CEO Bob Dinneen. “By reforming the existing tax credit into a technology neutral incentive, it will help stimulate investment among a wider range of production technologies and help promote the growth of the second generation biofuels industry.

“We look forward to working with Sen. Wyden and his colleagues in the Senate Finance Committee to ensure that any final clean energy tax reform proposal is crafted in a way that incentivizes performance based improvements in the production of biofuel, and at the same time promotes industry growth,” Dinneen added.

Growth Energy CEO Emily Skor also thanked Sen. Wyden, “for his efforts to provide long-term tax certainty to advanced and cellulosic biofuels. Corn ethanol reduces greenhouse gas emissions by 43 percent, and under this legislation, credits are based on greenhouse gas reductions and are technology neutral. The bill also recognizes increased payments for improved emissions reductions and has a less complicated formula that does not discriminate against ethanol fuels.

“Ethanol is an advanced biofuel that Americans use every day, and it is moving our nation forward. Policies like those proposed in this legislation will pave the way for the continued growth of this clean-burning, environmentally friendly biofuel.”