(January 25, 2011) Washington – Renewable Fuels Association President and CEO Bob Dinneen today is addressing the annual meeting of the Iowa Renewable Fuels Association. Dinneen is joining Iowa Governor Terry Branstad, former House Speaker Newt Gingrich, and former Senator Rick Santorum in addressing the role of ethanol production in America’s ethanol future.

A full copy of Dinneen’s remarks as prepared for delivery can be read here.

In addressing the debate over reform ethanol tax policy, Dinneen says, “We can’t legislate with wishes and bumper sticker slogans. We need to recognize the need to reform the existing tax incentive to reduce cost, encourage innovation and reflect changing market conditions. But we should not be bullied into abandoning a structure that has worked quite well, enabling marketers to invest in the infrastructure for a growing industry while lowering consumer gasoline prices for consumers.”

Additionally, Dinneen points to the need for any reform efforts to recognize the importance of advanced and cellulosic ethanol production. “The discussion about future ethanol policy must also include a meaningful effort to accelerate the commercialization of cellulosic ethanol and other advanced biofuels. Clearly, existing policy isn’t doing the job. The technology is there. But investment dollars have been slow to flow to this important sector.”

On the issue of ethanol infrastructure, Dinneen notes that smart tax policy can help achieve our goals. “Tax policy can also do much more to encourage the investment in necessary infrastructure. We need more blender pumps out there to enable more widespread use of E15, other mid-level ethanol blends and E85. The existing infrastructure credit is unnecessarily restrictive and needs to be expanded if we are to build beyond the 2,300 pumps nationwide currently offering more than 10% ethanol blends. As a soon to be released RFA report will outline, we can achieve the goals of the RFS through increased ethanol infrastructure with a smart, targeted approach and let the marketplace take it from there.”

However, Dinneen cautions that any discussion of future ethanol tax policy must be done in a broader energy context. “It’s critically important that we not allow a unilateral disarmament for ethanol. Let’s demand a broader conversation about motor fuel tax policy. Why, for example, must taxpayers continue to subsidize petroleum fuels that have enjoyed a monopoly in fuel markets for a hundred years? Why should we have to defend the investments made in renewable fuels every year, while the subsidies for petroleum remain embedded in the tax code permanently?

Dinneen notes that this broader discussion is particularly needed, “Because in the energy market, it’s more than just access, it’s economics that will determine the future of our transportation fuels.”

Dinneen also touches on the issues that remain before the nation can see E15 widely available. Namely, Dinneen singles out the need for an informative not inflammatory label, ongoing health effects testing required for any new fuel, octane certification, state regulatory hurdles, and gasoline retailers’ concerns about misfueling.

Read more of Dinneen’s remarks here.