(March 26, 2012) Washington - In a letter to Senate Finance Subcommittee on Energy, Natural Resources, and Infrastructure Chairman Jeff Bingaman (D-NM) and Ranking Member John Cornyn (R-TX), the Advanced Ethanol Council voiced support for extending key cellulosic ethanol tax provisions set to expire at the end of 2012.

“As you convene a Subcommittee hearing on expired and expiring energy tax incentives tomorrow, the Advanced Ethanol Council (AEC) is writing to encourage you to include in an energy tax extenders package the extension of two critical tax incentives. The Cellulosic Biofuels Producer Tax Credit (PTC) and the Special Depreciation Allowance for Cellulosic Biofuel Plant Property are vital to the ongoing development of the domestic advanced ethanol industry,” wrote Brooke Coleman, Executive Director of the AEC.

The AEC has been a vocal advocate for extending these important tax provisions. In reaction to a failed amendment by Senator Debbie Stabenow to the transportation bill that would have extended these provisions, Coleman noted, “Unfortunately the Senate missed an opportunity to put to bed the pressing need to extend expiring tax incentives for cellulosic biofuels and other sources of domestically produced clean energy. The underlying reality is the lack of policy certainty is driving clean energy investment overseas and putting the United States behind the eight ball when it comes to clean energy development.”

The complete AEC letter is pasted below:

Dear Chairman Bingaman and Ranking Member Cornyn:

As you convene a Subcommittee hearing on expired and expiring energy tax incentives tomorrow, the Advanced Ethanol Council (AEC) is writing to encourage you to include in an energy tax extenders package the extension of two critical tax incentives. The Cellulosic Biofuels Producer Tax Credit (PTC) and the Special Depreciation Allowance for Cellulosic Biofuel Plant Property are vital to the ongoing development of the domestic advanced ethanol industry.

The U.S renewable fuels industry is already an American success story. The advanced and cellulosic biofuels industry is now in the process of building new plants, helping drive innovation at existing production facilities with emerging technologies, and introducing new product streams that will allow the renewable fuels sector to become more profitable, diversified and efficient. Over the last several years, the advanced ethanol industry has vastly increased the efficiency and reduced the cost of producing ethanol from new sources of biomass – including but not limited to municipal solid waste, agricultural waste, energy crops and grasses, and sustainably harvested wood resources.

Several billion dollars have been invested in the development of advanced biofuels with the expectation that Congress will stay the course with regard to its commitment to the industry. The PTC and accelerated depreciation allowance provide investment certainty in a high‐risk marketplace largely supply‐and price‐controlled by OPEC. A tax increase on advanced biofuels at this time would curtail investment by creating uncertainty for the industry and undercut an industry just starting to close deals and break ground on its first commercial plants. Further, allowing the PTC and accelerated depreciation allowance to expire runs counter to the goals set forth by Congress to foster the development of advanced biofuels under the Renewable Fuels Standard.

With gas prices soaring, it is increasingly important to diversify U.S. motor fuel markets with viable and competitive alternatives to gasoline, such as advanced ethanol, that will offer American consumers greater choice at the pump.

We appreciate your ongoing support for the advanced biofuels industry and look forward to further discussion of this important matter.

Sincerely,

R. Brooke Coleman

Executive Director

The executive members of the Advanced Ethanol Council (AEC) include: Abengoa BioEnergy, Beta Renewables, BlueFire Renewables, Coskata, Enerkem, Fulcrum BioEnergy, Inbicon, Iogen, Mascoma, Osage BioEnergy, Qteros and ZeaChem