ACE Praises Introduction of Security and Fuel Efficiency Energy Act of 2007

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ACE Praises Introduction of Security and Fuel Efficiency Energy Act of 2007

Sioux Falls, SD -- The American Coalition for Ethanol today praised U.S. Senators Byron Dorgan (D-ND) and Larry Craig (R-ID) for their bipartisan leadership in introducing the Security and Fuel Efficiency Energy Act of 2007. The SAFE Energy Act contains many provisions aimed at increasing the use and production of homegrown, renewable ethanol, according to the association.

"The American Coalition for Ethanol is very grateful to Senators Dorgan and Craig for their bipartisan leadership to promote the further growth of the U.S. ethanol industry by including provisions supported by ACE in the SAFE Energy Act," said Brian Jennings, executive vice president of ACE, the nation’s largest ethanol association with more than 1600 members across the country.

Though the ACE Board has not yet taken an official position on the legislation, ACE worked closely with Senators Dorgan and Craig on the key biofuels provisions in the bill, which are consistent with ACE policy:

• Increasing the Renewable Fuels Standard (RFS) to 30 billion gallons per year by 2020, including a call for 15 billion gallons per year of ethanol to come from cellulosic sources.
• Increasing the tax credit for E85 infrastructure from 30 percent to 35 percent.
• Increasing the number of Flexible Fuel Vehicles on America’s roads by 10 percent annually.
• Creating a new investment tax credit for blender pumps valued at 40 percent.

"ACE is particularly pleased with the inclusion of a new and meaningful tax credit for the purchase and installation of blender pumps which can dispense blends of ethanol beyond 10 percent," Jennings said. "The ACE board of directors recently voted to support infrastructure for higher ethanol blends by working with Congress to provide incentives to petroleum marketers to purchase and install blender pumps, and the Dorgan-Craig legislation is a product of that effort."

ACE believes it is critically important to act now to ensure the refueling infrastructure is in place to dispense the higher blends of ethanol that will be used in the future.

"These incentives, if enacted, would be today's infrastructure investment in the biofuels of tomorrow. We applaud Senators Dorgan and Craig for this visionary step and for their leadership on this issue," he added.

In addition, ACE believes that increasing the RFS is critically important to creating a sustainable market for both corn-based and cellulosic ethanol. Such a move would send a signal to corn farmers, lenders, investors, and dry-mill and cellulosic ethanol producers that the U.S. is committed to making biofuels a centerpiece of the nation’s energy strategy for the long-term.

"As the only national ethanol organization embracing and pushing for an RFS increase, ACE values the strong momentum building in Congress in support of this critical policy step. A long-term commitment to a strong, meaningful RFS is critically important to the health and success of the U.S. ethanol industry," Jennings said.