Tax incentives, infrastructure investments seen as key to commercialization

(May 4, 2011) Washington - The Advanced Ethanol Council (AEC), compromised of 10 of the world's leading advanced ethanol producers, today welcomed legislation from Iowa Senator Chuck Grassley and a bipartisan group of senators to transform current ethanol tax policy and reinvest in this uniquely American industry.

The legislation, the Domestic Energy Promotion Act of 2011, would transition the current blender's credit to a variable tax credit based on the price of oil, improve tax incentives for blender pumps and ethanol refueling infrastructure, and extend crucial tax incentives for advanced and cellulosic ethanol production that are set to expire at the end of the 2012.

Brooke Coleman, Executive Director of the AEC, released the following statement:

"We applaud Senator Grassley’s continued leadership on this issue. The proposal strikes the right balance between providing savings to the taxpayer, developing the infrastructure necessary to incorporate growing volumes of ethanol from all feedstocks, and extending the incentives that are critical to the development of next generation ethanol fuels. The tax incentives for advanced and cellulosic ethanol contained in Senator Grassley’s proposal will help our industry put steel in the ground and create jobs and economic activity that cannot be exported. They are the type of tax incentives already provided for the fossil fuels industry, and extending these incentives helps begin the process of leveling an uneven playing field with gasoline and other petroleum fuels. Most importantly, this proposal establishes a durable and consistent tax framework for our industry, which in turn will facilitate substantial investment in domestically-produced advanced ethanol fuels and allow our sector to reach its full potential.”

About the Advanced Ethanol Council: The AEC represents worldwide leaders in the effort to develop and commercialize next generation ethanol fuels.. In partnership with the Renewable Fuels Association, the AEC is focused on developing and implementing responsible policies that accelerate the commercialization of advanced ethanol technologies and expands the market for ethanol use. The founding members of the AEC are: Abengoa Bioenergy, BlueFire Renewables, Coskata, Enerkem, Fulcrum BioEnergy, Inbicon, Iogen, Mascoma, Osage Bio Energy and Qteros.