EPA Sets Timeline for RFS Volume Requirements

epa-150Under a court settlement with the oil industry, the Environmental Protection Agency today announced they will propose the 2015 Renewable Fuel Standard (RFS) renewable volume obligations by June 1, 2015, and issue the final 2014 and 2015 RFS blending targets by November 30, 2015. In addition, EPA will also release the proposed 2016 RFS RVOs by June 1 and the 2016 numbers will be finalized by Nov. 30.

The biofuels industry reacted immediately to the announcement. “This consent agreement is a good start,” said Renewable Fuels Association president and CEO Bob Dinneen. “We are particularly pleased that the Agency has committed to addressing the 2016 RVO in the same time frame even though that is outside the scope of the consent agreement.”

“By taking this action, they are ensuring that the RFS is back on a path to certainty for the biofuels industry, providing the necessary guidance for the industry to continue to thrive and advance alternative fuel options for American consumers,” Growth Energy CEO Tom Buis said.

“ACE has consistently said it is much more important for EPA to get the RFS done right than it is for them to get the RFS done quickly, and that bears repeating given today’s announcement that the RFS will be getting back on track for implementation,” said American Coalition for Ethanol (ACE) Executive VP Brian Jennings.

National Biodiesel Board is pleased the EPA announcement said they would “re-propose volume requirements for 2014, by June 1, that reflect the volumes of renewable fuel that were actually used in 2014.”

“The volumes for Biomass-based Diesel in 2014 were approximately 1.75 billion gallons so EPA reaffirming its commitment to “actual use” appears to be a step in the right direction,” said NBB Vice President of Federal Affairs Anne Steckel.

Advanced Ethanol Council (AEC) executive director Brooke Coleman says the announcement sends a good signal to the advanced biofuels industry. “Now that we have a better idea of when it will happen, we look forward to working with EPA to make sure that the new RFS proposal supports the commercial deployment of advanced biofuels as called for by Congress.”

EPA intends to issue a Federal Register Notice allowing the public an opportunity to comment on the proposed consent decree.

Think Tank Ponders Cellulosic Ethanol Link

3rd-wayA new report from centrist think tank Third Way ponders the quest for cellulosic biofuels and concludes that the pathway is via corn ethanol.

This report confirms what the biofuels industry has been saying for some time now – that you cannot have cellulosic ethanol without the continued production and support of grain-based ethanol,” said Growth Energy CEO Tom Buis.

One of the takeaways from the Third Way report is that, “proposals to reform the Renewable Fuel Standard (RFS) would discourage engagement from the corn ethanol industry” and thus delay commercialization of cellulosic ethanol and steer investment overseas.

Renewable Fuels Association (RFA) president Bob Dinneen says the report highlights the importance of consistent policy for the continued evolution of biofuels. “Legislative efforts to undermine either will set the nation’s energy and economic future back generations,” said Dinneen. “Third Way should be commended for adding a thoughtful component to this ongoing discussion and I can only hope that it is read with interest by Senators Feinstein and Toomey.

“(T)he biggest point, coming from a thought leader in the space like Third Way, is that Congressional intervention on the RFS would be highly detrimental to the deployment of cellulosic biofuel,” said Brooke Coleman of the Advanced Ethanol Council.

“The success of the conventional ethanol industry has driven serious investment in the cellulosic industry and there is an important linkage between them,” says Adam Monroe, President Americas for Novozymes which produces enzymes used for cellulosic ethanol production. “Tinkering with the corn portion of the RFS now will only hurt both industries.”

The report also concludes that “companies with an extensive background in the corn ethanol industry are cracking the cellulosic code,” and continued investment from these companies in facilities and innovation is critical to growing U.S. cellulosic capacity.”

Advanced Ethanol Progress and Concerns

nec15-advance-panelWhile it’s making progress, there are still plenty of questions and concerns regarding advanced ethanol production. During the the 20th National Ethanol Conference, a panel of advanced ethanol producers talked about the challenges and opportunities facing their industry.

Advanced Ethanol Council Executive Director Brooke Coleman moderated the panel which included Bill Feehery of DuPont Industrial Biosciences (pictured at the podium), Adam Monroe of Novozymes, Paula Corollo with Beta Renewables, and Abengoa’s Chris Standlee. Coleman said while there are naysayers, who try to talk down the cellulosic industry, saying it’s not going fast enough or isn’t successful enough, he sees incredible progress over the last five years for the industry. But it’s not going to get easier.

“This is a crossroads and the part where it gets hard. This is the part where we diversify feedstock, introduce new technologies, and the [Environmental Protection Agency] has to look down and decide if we’re going to change the fuel markets at a fundamental level or just change them to where the oil industry is comfortable,” Coleman said.

Feehery’s presentation focused on the progress cellulosic ethanol has made, calling the recent advancements that are delivering a cleaner, more sustainable transportation fuel that’s also invigorating rural America’s economy. “It’s a victory of science, industry policy, and plain good, old-fashioned hard work, and it’s an accomplishment we all share together.”

Looking ahead, Feehery said it’s also important to look back at what has been successful to see the path forward. He pointed to efficiencies and technologies, such as enzymes, that are making cellulosic more affordable and more commercially viable. He’s also excited by how celluslosic ethanol is being embraced by American companies not just within the fuels markets, such as Procter & Gamble, which is using cellulosic ethanol in its formulation for Tide laundry detergent. He concluded that these technologies and adoptions by industry are key drivers in how cellulosic ethanol will grow in the years to come.

“What we see is the beginning of a bioeconomy in action,” Feehery said.

Listen to Feehery’s presentation before the group here: NEC 15 Advanced Ethanol Panel

2015 National Ethanol Conference Photo Album

Hear Biofuels Reps Talk About RFS Delay

epa-150Biofuels industry representatives spent Friday afternoon fielding calls from reporters to comment on the Environmental Protection Agency decision to put off finalizing 2014 volume standards under the Renewable Fuel Standard program until next year.

Domestic Fuel caught up with four of the industry groups, starting with Bob Dinneen with the Renewable Fuels Association (RFA), already posted previously.

Listen to the interviews below:

American Coalition for Ethanol (ACE)Interview with ACE Executive Vice President Brian Jennings

Growth Energy
Interview with Growth Energy CEO Tom Buis

National Biodiesel Board (NBB)Interview with NBB Vice President of Federal Affairs Anne Steckel

On Monday, biofuels industry leaders will hold briefings for Capitol Hill staff and the media to discuss the implications of the decision and where we go from here. The Fuels America briefing will feature Buis, Dinneen, Advanced Ethanol Council (AEC) Executive Director Brooke Coleman, and Brent Erickson with the Biotechnology Industry Organization (BIO).

EPA Decision Impacts Advanced Biofuels

The Environmental Protection Agency’s decision to hold off on issuing a final rule for 2014 volume obligations under the Renewable Fuel Standard (RFS) continues the atmosphere of uncertainty for the advanced biofuel industry, according to the Biotechnology Industry Organization (BIO).

BIO logo“We appreciate that EPA will not be finalizing a proposed 2014 RFS rule containing a flawed methodology for setting the renewable fuel volumes,” said BIO President & CEO Jim Greenwood. “Unfortunately, the delay in this year’s rule already has chilled investment and financing of future projects, even as first-of-a-kind cellulosic biofuel plants are right now starting up operations. The industry needs a final rule that is legally appropriate and continues to support our efforts.”

aeclogoAdvanced Ethanol Council (AEC) Executive Director Brooke Coleman says that pulling back on the 2014 RFS rule is “the right thing to do at this stage in the game when it comes to preserving the integrity of the program.”

“While the cellulosic biofuel industry will not get the policy certainty it needs from this decision, it does suggest that the Administration is listening when it comes to our concerns about giving oil companies too much power to avoid its obligations under the RFS going forward,” Coleman added. “This battle was never about the 2014 volumes for the oil industry, and we appreciate the Administration’s willingness to pivot in the right direction this late in the game. The key now for advanced biofuel investment is to move quickly to fix what needs to be fixed administratively so we can reestablish the RFS as the global gold standard for advanced biofuel policy.”

abfaThe Advanced Biofuels Association (ABFA) president Michael McAdams says the announcement was a surprise.

EPA hit the big reset button. Given the fact that we are already at the end of 2014, we appreciate EPA’s recognition that the real importance is to set the program on a clear glide path for 2015 and 2016. The numbers do matter, and utilizing the actual production will be a positive step from what was a proposed. We appreciate how EPA recognized that cutting requirements for advanced biofuels would be a mistake. This emerging industry deserves better considering it has already demonstrated the capacity to generate 3.2 billion gallons of advanced biofuel annually. But, at least EPA’s decision leaves the glass more than half full and allow us to get back on track next year.

Is Obama is Own Worst Enemy on Climate?

The People’s Climate March” has received worldwide attention to kick off Climate Week in New York and an ad in the New York Times is asking if President Obama is his own worst enemy when it comes to climate. The ad tells the president that if his administration accepts the Environmental Protection Agency’s proposal to alter the Renewable Fuel Standard (RFScreen Shot 2014-09-22 at 11.37.27 AMS) he “will have inadvertently done more to damage [his] climate legacy than [his] worst enemies.”

The ad warns that the proposal would let oil companies off the hook for blocking competition from American renewable fuels, and prompt an exodus of investment in cellulosic ethanol—the world’s cleanest motor fuel—to China and Brazil.

In the ad, the Advanced Ethanol Council and Biotechnology Industry Organization caution President Obama that investments in additional cellulosic production beyond these four plants will likely shift overseas if the President adopts the flawed methodology of the EPA proposal, regardless of whether he decides to actually raise the renewable fuel targets in the rule. This month, two commercial scale cellulosic ethanol biorefineries came online in Iowa and Abengoa will be hosting a grand opening for its cellulosic ethanol plant in Kansas in October.

Senate Committee Considers Energy Tax Reform

The Senate Finance Committee held a hearing today on Reforming America’s Outdated Energy Tax Code, led by chairman Ron Wyden (D-OR).

“It’s past time to replace today’s crazy quilt of more than 40 energy tax incentives with a
modern, technology-neutral approach,” said Wyden at the start of the hearing, adding that the disparity in how the tax code treats energy sources needs to end. “Traditional sources benefit from tax incentives that are permanently baked into law. But clean energy sources are stuck with stop-and-go incentives that have to be renewed every few years.”

The main goal of the hearing is to focus on extending the dozen or so tax incentives for alternative energy sources such as advanced biofuels, wind, and solar.

aeclogo“The title of the hearing is right,” said Advanced Ethanol Council Executive Director Brooke Coleman. “Investors are highly sensitive to protections offered by tax law, and today’s energy tax regime drives investment away from viable petroleum alternatives like cellulosic biofuels because oil tax breaks are richer and permanent. The short term fix is extending recently expired and existing tax incentives for clean energy this year, to buttress against those offered to fossil fuels permanently. But any broader discussion about America emerging as the leading energy innovator in the world starts and ends with the federal tax code. It simply won’t happen without serious energy tax reform.”

Among those testifying at the hearing today was former Sen. Don Nickles (R-OK), now a lobbyist who has represented several energy companies, who spoke against continuing wind energy tax incentives.

Ethanol Report on Advanced Ethanol Concerns

ethanol-report-adAdvanced Ethanol Council (AEC) executive director Brooke Coleman commented last week on a new Congressional Budget Office (CBO) report on the impacts of the Renewable Fuel Standard (RFS) so we got him on the phone for this edition of “The Ethanol Report.”

colemanIn this interview, Coleman talks about his take on the CBO report, as well as Phantom Fuels legislation in Congress, and the delay on EPA issuing a final rule for 2014 volume obligations under the RFS.

You may recall that EPA officials said earlier this year that they expected to have a final rule by the end of spring, or at least the end of June, but that has not happened yet and Coleman explains they now have until the end of September. “They were saying the end of June because they had to get it done by July 1st because they had extended the RFS compliance year through June,” he said. “They then extended it again through September.

Ethanol Report with Brooke Coleman, Advanced Ethanol Council

Subscribe to “The Ethanol Report” with this link.

CBO Releases RFS Report

The Congressional Budget Office has released a new report, “Renewable Fuel Standard: Issues for 2014 and Beyond“. The evaluates how much the supply of various types of renewable fuels would have to increase over the next several years to comply with the CBO RFS report June 2014Renewable Fuel Standard (RFS). The U.S. Environmental Protection Agency (EPA) has yet to finalize its 2014 proposed rule, that if finalized based on initial numbers, would set the growth of biofuels backwards. The report also examines how other issues, such as fuel prices and emissions would vary by 2017, under three RFS scenarios:

  • The EISA volumes scenario, in which fuel suppliers would have to meet the total requirement for renewable fuels, the requirement for advanced biofuels, and the cap on corn ethanol that are stated in EISA for 2017—but not the requirement for cellulosic biofuels, because the capacity to produce enough of those fuels is unlikely to exist by 2017;
  • The 2014 volumes scenario, in which the EPA—which has some discretion to modify the mandates of EISA—would keep the RFS requirements for the next several years at the same amounts it has proposed for 2014; and
  • The repeal scenario, in which lawmakers would immediately abolish the RFS.

The report finds that food prices would be similar in all scenarios, including the dismantling of the RFS. However, the report finds that advanced biofuels must increase substantially to meet requirements, and that the increased use of all biofuels would increase the price of fuel at the pump.

In response to the report, Brooke Coleman, executive director of the Advanced Ethanol Council (AEC) noted that the report fails to take into account basic realities when it comes to assessing the program.

“Some reports are simply not worth reading, and this is one of them. You cannot assess the impacts of the RFS without looking at the benefits of reducing consumer demand for gasoline and diesel fuel,” said Caeclogooleman. “That’s the entire point of the RFS and the CBO simply states that ‘it did not account for that effect in this analysis.’ To put that omission in perspective, an oil economist recently concluded that the RFS saved motorists at least hundreds of billions of dollars in 2013 by adding the equivalent of an additional OPEC country to U.S. gasoline supplies during times of extreme tightness between supply and demand.”

“Whatever the savings are, an analysis of a foreign oil displacement program that does not look at the benefits of displacing foreign oil demand should be dismissed out of hand. The gas price claims are really strange as well,” continued Coleman. “A cornerstone assumption in the report has RFS-RIN prices so high that gasoline retailers could give renewable fuel blends away for free and still make a profit. Needless to say, this is never going to happen. CBO reports are supposed to be impartial and objective, and therefore informative.”

Coleman concluded, “This particular report appears to detail a fantasy world that does not inform the current debate.”

Advanced Biofuels Industry: Obama Please Reconsider RFS

More than two dozen advanced biofuel producers have submitted a letter to President Obama today calling on him to reconsider the proposed Renewable Fuel Standard (RFS) rule for 2014. Led by the Advanced Ethanol Council and the Biotechnology Industry Organization (BIO), the groups write: “The RFS is necessary because the highly consolidated, President Obamavertically integrated oil industry is not otherwise going to allow market access for renewable fuels”.

The letter continues, “To reduce the 2014 blending requirements and volumes in future years, EPA is proposing to use its general waiver authority based on ‘inadequate domestic supply.’ But EPA is putting forward a novel interpretation of the word ‘supply’ to mean the ability of current infrastructure to deliver renewable fuel blends to consumers, instead of the available supply of renewable fuel to obligated parties. We believe that this new interpretation is inconsistent with the plain meaning of the statute and its legislative history. But the bigger issue is that this interpretation has the practical effect of handing the future trajectory of the RFS to the oil industry by virtue of the fact that the oil industry itself controls the distribution of fuel to consumers.

The threat that oil companies could simply lie down on the RFS to avoid obligations vastly increases supply-chain risk for new projects, as opposed to those already in the ground. Given that more than 90 percent of future blending obligations under the RFS are for advanced biofuels, the Administration’s new methodology would actually scuttle U.S. investment in advanced, low-carbon biofuels in direct conflict with the Climate Action Plan and your Administration’s goals with regard to reducing oil dependence and promoting advanced biorefineries via USDA and DOE programs.

“We are most concerned about the current proposal’s impact on climate change. Our industry has invested billions of dollars in the development and commercial deployment of ultra-low carbon biofuels during your Administration alone. These investments were made based on the expectation that when we succeed, the RFS will be maintained as a mechanism to create a market for our fuels. The current proposal would break that promise by handing the RFS to incumbent industries that want to see it fail. And by any account, the real world alternative to renewable fuels is marginal, high carbon intensity oil,” the letter concludes.

Advanced Biofuels Group Questions Corn Stover Study

aeclogoA new study about the climate impact of using corn residue for biofuel production raises more questions than it answers, according to Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC).

“In reality, the study confirms what we already know; that excessive agricultural residue removal is bad for the soil and has negative impacts on climate,” said Coleman in a statement, adding that the study uses corn stover removal rates far exceeding those used in the field. “The analysis also models a one-size-fits-all approach to managing soil carbon that, by definition, ignores how farmers manage their land.”

The study at the University of Nebraska-Lincoln used a supercomputer model to estimate the effect of residue removal on 128 million acres across 12 Corn Belt states. Researchers reported that “removing crop residue from cornfields generates an additional 50 to 70 grams of carbon dioxide per megajoule of biofuel energy produced.”

Total annual production emissions, averaged over five years, would equal about 100 grams of carbon dioxide per megajoule — which is 7 percent greater than gasoline emissions and 62 grams above the 60 percent reduction in greenhouse gas emissions as required by the 2007 Energy Independence and Security Act.

“Our industry is more than willing to engage in important discussions about the climate impacts of using agricultural residues to make fuel, but the headline-chasing strategy of trying to sell extreme modeling assumptions as the norm does not facilitate that process,” commented Coleman. “If you look at the full spectrum of peer-reviewed work, cellulosic biofuel is the lowest carbon fuel in the world.”

RFA-logo-13Renewable Fuels Association president and CEO Bob Dinneen believes the study is “fundamentally flawed and its conclusions are highly suspect. The results are based on sweeping generalizations, questionable assumptions, and an opaque methodology. The authors offer no robust explanation for why their findings contradict other recent, highly regarded research. Ultimately, this paper should be seen for what it truly is – a modeling exercise of a hypothetical scenario that bears no resemblance to the real world.”

Advanced Biofuels in Tax Extenders Bill

aeclogoThe cellulosic biofuels industry was very pleased to see the Senate Finance Committee markup of a package of tax extenders that includes the Producer Tax Credit (PTC) and the special depreciation allowance for advanced biofuels.

“The cellulosic biofuel industry is just breaking through at commercial scale. Today’s markup sends a clear signal to the marketplace that Congress is making progress on extending its support for one of the most innovative, low carbon industries in the world,” said Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC). “It will be very important to move this package along quickly, as executives in our industry are weighing the pros and cons of developing the next wave of projects here or abroad.”

Advanced-Biofuels-Association-Logo“We applaud the Finance Committee and Chairman Wyden for supporting the advanced biofuels tax incentives included in the extenders legislation,” added Advanced Biofuels Association president Michael McAdams. “These extenders send a significant signal to the advanced and cellulosic industry and to the markets regarding the sustained support at the federal level, and our members appreciate the certainty of a two-year extension.”

Companies like Novozymes that are members of these organizations are very happy with the action. “When you’re on a road trip, you don’t stop every 10 minutes to put in one gallon—you fill up for the long haul. That’s what these tax credits and renewable fuel policies like the RFS need too: Fuel for the long haul to drive investment, create jobs and move our economy forward.” said Adam Monroe, Novozymes President, Americas.

The Second Generation Biofuel Producer Tax Credit, Special Depreciation Allowance for Second Generation Biofuel Plant Property, Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit all expired at the end of 2013. This package extends them through 2015 adding certainty for the advanced biofuel industry and its investors.

Biofuel Organizations Call for Tax Credits Extensions

US Capitol at dusk photo Joanna SchroederLeaders from several biofuel trade organizations are calling for the extension of some federal advanced biofuel tax credits. The Advanced Ethanol Council, Advanced Biofuels Association, Algae Biomass Organization, Biotechnology Industry Organization, Growth Energy, National Biodiesel Board, and Renewable Fuels Association have sent a letter to the Senate calling for the restoration of the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, the Biodiesel and Renewable Diesel Fuels Credit, and the Alternative Fuel and Alternative Fuel Mixture Excise Tax Credit.

The letter reads, in part, “The advanced biofuels industry is at a critical stage of development. Despite a difficult financial market, we are now operating commercial plants across the country and continue to make progress on dozens of additional projects in the final stages of development. Advanced biofuel tax credits have allowed the biofuels industry to make great strides in reducing the cost of production and developing first-of-kind technologies to deploy the most innovative fuel in the world.

“As leaders in a critical innovation sector in the United States, we are well aware of the financial constraints facing this country. However, the United States’ global competitors are offering tax incentives for advanced biofuels and in fact are attracting construction of new facilities – and associated high skilled jobs. If Congress wants American companies to continue developing these homegrown technologies in the United States, it must extend these credits. Biofuel producers are also competing with incumbent fossil energy industries who continue to enjoy tax incentives on a permanent basis.”

The letter marks the latest effort by biodiesel and ethanol producers and their backers to get better federal government support for their green fuels. Late last year, the Environmental Protection Agency undercut the industries when it proposed drastic reductions in the amount of biodiesel and ethanol to be mixed into the Nation’s fuel supply. In addition, Washington also let these vital federal tax credits expire at the end of the year.

POET-DSM Joins Advanced Ethanol Council

aeclogoPOET-DSM Advanced Biofuels is the newest member to join the Advanced Ethanol Council (AEC).

“As cellulosic ethanol becomes a growing force in fulfilling biofuel requirements in the U.S., it’s important for POET-DSM Advanced Biofuels to work with other industry leaders to help shape policies that ensure consumer understanding of – and access to – its environmental, economic and energy-security benefits,” said Steve Hartig, General Manager – Licensing for POET-DSM Advanced Biofuels.

The joint venture between ethanol production company POET and Royal DSM, a Netherlands-based bio science company, is nearing completion of a 25 million gallon per year cellulosic ethanol biorefinery called Project LIBERTY, located in Emmetsburg, Iowa. The technology developed for the facility is available for licensing to develop other low-carbon, cellulosic ethanol production plants.

“As a key player in the industry that has the proven know-how to scale up its advanced technology to commercial scale, POET-DSM is a strong, strategic addition to the Council’s ranks as cellulosic ethanol moves from the development stage to full-scale commercial production in 2014,” said Brooke Coleman, Executive Director of the AEC.

Camp Releases 2014 Tax Reform Draft

Ways and Means Committee Chairman Dave Camp (R-MI) has released draft of the “Tax Reform Act of 2014,” which he says will spur stronger economic growth, greater job creation and put more money in the pockets of taxpaying Americans. Camp’s goal is to fix America’s broken tax code by lowering tax rates and making tax policy simpler and fairer for families.

Based on analysis by the independent, non-partisan Joint Committee on Taxation (JCT), without increasing the budget deficit, the Tax Reform Act of 2014:

  • Create up to 1.8 million new private sector jobs.
  • Allow roughly 95 percent of filers to get the lowest possible tax rate by simply claiming the standard deduction (no more need to itemize and track receipts).
  • Strengthen the economy and increases Gross Domestic Product (GDP) by up to $3.4 trillion (the equivalent of 20 percent of today’s economy).

organization of the ways and means committeeUsing data provided by JCT, Camp says the average middle-class family of four could have an extra $1,300 per year in its pocket from the combination of lower tax rates in the plan and higher wages due to a stronger economy.

“It is no secret that Americans are struggling. Far too many families haven’t seen a pay raise in years. Many have lost hope and stopped looking for a job. And too many kids coming out of college are buried under a mountain of debt and have few prospects for a good-paying career,” said Camp about the need to fix America’s broken tax code. “We’ve already lost a decade, and before we lose a generation, Washington needs to wake up to this reality and start offering concrete solutions and debating real policies that strengthen the economy and help hardworking taxpayers. Tax reform is one way we can do that.”

The tax code would also affect energy companies including those who are developing and providing renewable energy. In response to the draft proposal, Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC), said, “While the draft plan falls well short of the goal of ensuring that the multi-trillion dollar global clean energy sector sets up shop in the United States, Chairman Camp should be commended for taking tough positions on many of the most distortive oil and gas subsidies in the federal tax code.”

“Inequitable provisions like percentage depletion, last-in/first-out (LIFO) and various incentives for the production of marginal oil and gas distort investment decision-making and drive capital away from renewable fuels,” continued Coleman. “Chairman Camp is right to point out that only extractive industries are allowed to recover more than their investment under current percentage depletion and depreciation rules. Doing away with these provisions will do little to dissuade oil and gas investment given the magnitude of the opportunity, but will help level the playing field when it comes to investments in next generation fuels of all types.”

Coleman concluded that while AEC is not supportive of the proposal’s treatment of the emerging cellulosic and advanced ethanol industry, they are looking to working with the Committee to ensure the U.S. is in the best position to develop  new technologies and commercials clean energy on American soil.