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RFA stresses urgency of VEETC extension

Members of the Renewable Fuels Association lobbied on Capitol Hill last week for an extension of the Volumetric Ethanol Excise Tax Credit.

RFA president Bob Dinneen says they reinforced the urgency of finding a vehicle to get the ethanol tax incentive extended when Congress returns in November.

“You failed to get the biodiesel tax credit done and we lost jobs. The same thing will happen if you fail to get the ethanol extension done,” says Dineen. “Nobody up there wants to see more job loss. They’re all focused on ‘we’ve got to jump start the economy and we’re looking for ways to add jobs.’ Well, how about the first thing you do is not dig a deeper ditch.”

Another ethanol lobbying group in Washington, Growth Energy, has proposed reducing or eliminating the tax credit in exchange for more government support of ethanol infrastructure improvements.  RFA’s Dineen agrees it may be time to consider ethanol policy reform, but he says it’s a conversation that needs to happen next year.

“What we need to do now is take a look at how we can get an extension that allows the industry to continue to grow and evolve next year—while that conversation occurs,” he says.

Meanwhile, a White House official who spoke at RFA’s annual meeting last week, reiterated the administration’s support for ethanol and VEETC.  The deputy assistant to the President for energy and climate change policy, Heather Zichal, said the administration continues to view first generation corn-ethanol as “a critically important fuel source.  At the same time, we’re also looking forward and are working to accelerate the creation and rapid deployment of advanced biofuels, which we think will ultimately become one of the nation’s most important industries in the years to come.”