Efforts to Shift Biofuel Industry Incentives Gains Foothold in Washington
The president administration and biofuels domain followers had been constantly refusing from traditional tax donations to corn based fuel and started to invest in infrastructure, the task of which is to grow the diffusion of alternative fuels.
The most passionate ethanol follower Tom Vilsack the Agriculture Secretary informed during his speech at National Press Club that the changes in current donation system may occur in the nearest future by thus decreasing the prices for imported ethanol. Having told about ethanol tax donations extensions Secretary informed about the changes the industry needs to get ready. He mentioned that the country needs to think about amendments in ethanol credit program in order to make it more efficient for solving a complete set of problems the country faces when achieving its goals for traditional and next generation biofuels.
Tom Vilsack had also informed about the launching Agriculture Department programs aimed at next generation biofuels pumps and other infrastructure development. This plan had been created by biofuels policy follower during last few months. This program will assist at financing of five biorefineries and bioenergy plants, 10,000 pumps and storage tanks for new mixtures of petroleum with higher ethanol percentage, as well as donating biofuels new crops shipping and conservation.
Vilsack described his Secretariat actions as the first step. Mixture pumps, proposing wide choice of fuel types, including the ones with higher ethanol percentage would be built at less than tenth of the more than 100,000 pumps and convenience stores in the US. On the Secretary opinion, the government should promote the manufacturing of more cars with hybrid engines. He has also mentioned that the country has to find ways to use such sources in order to extend supply system and prompt greater product demand. At the same type Vilsack specified that he didn't have right answers, but had others who offered him some ideas
About industry organizations offer
The secretary's plan on hybrid engine cars manufacturing promotion and biofuels pumps and storage tanks network expanding coincides with Growth Energy group plan. Tom Buis the Growth Energy CEO approved Agriculture Department Secretary statement having mentioned that his organization is completely sure that Agriculture Secretary and Obama administration are aware about the necessity to support country biofuels industry as the mean to decrease the US dependence on foreign oil import
Last summer this organization proposed to direct some portion financing flows in the amount of 6 billion USD a year coming to the domain to the investment of infrastructure projects aimed at expansion of mixed pumps and biofuel pipelines grid. This program another aim is to make all cars with hybrid engines with the capacity to use fuel with 85% of ethanol in its composition. Most petroleum now has 10 percents of ethanol in their composition.
This offer divided the opinions of biofuels industry followers, some of whom named such changes to be too quick. But, Growth Energy and other principal ethanol groups had gained consensus and elaborated mutually satisfactory program, which had been presented at Congress and the White House.
Proxies of the American Coalition for Ethanol, Growth Energy, the Renewable Fuels Association and the National Corn Growers Association informed about the elaboration of long term policy directions, where they foresee the transition to infrastructure projects assistance. These groups administration had conducted the meetings with lawgivers and administration CEOs.
These groups' immediate objectives are to ask for at least one year extension for ethanol tax donations. Darrin Ihnen, chairman of the National Corn Growers Association explains such objectives by their necessity to have time for market assessment development
Important time
According to experts opinion such actions had been done on ethanol programs federal assistance crisis, as the term of existing ethanol donations ends at the end of this year unless lawgivers giber their extension approval during lame-duck meeting. Plus Congress didn’t manage to give extension to less expensive and disputable biodiesel tax donation, ended last year.
Midwestern lawgivers have been hastening the prolongation by motivating their actions with the statement that 10000 of jobs may be lost unless not extended, while others argue that such extension would be too expensive.
At the same time Senate Energy and Natural Resources Chairman Jeff Bingaman (D-N.M.) provided Congressional Budget Office report, where such goals had been severely criticized, by saying that such credits can't be extended all the time.
Taking into account the opinion of environmental, taxpayer, livestock and food industry groups' coalition the lawgivers had been forced to abort donations for corn ethanol and obtained the criticism for new offer on infrastructure assistance. Anyway, corn growers continue their tries, while Ihnen confirmed his doubts about the possibility of extension for more than one year.
Efforts to Shift Biofuel Industry Incentives Gains Foothold in Washington
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