Grainnet

ACE Praises Introduction of Renewable Strategy Act of 2007

Sioux Falls, SD--The American Coalition for Ethanol (ACE), the nation's largest ethanol association, praised U.S. Senators Dorgan (D-ND) and Lugar (R-IN) for their bipartisan leadership in introducing the Renewable Fuels Strategy Act of 2007.

The legislation contains several provisions that are integral to moving away from dependence upon expensive crude oil and toward energy self-sufficiency through renewable fuels such as ethanol.

"The American Coalition for Ethanol is very grateful to Senators Dorgan and Lugar for their bipartisan leadership in the nation's movement toward renewable energy and for making key ACE-supported policies an integral part of the Renewable Fuels Strategy Act of 2007," said Brian Jennings, ACE Executive Vice President.

"A comprehensive approach to the production, distribution, and consumption of ethanol is absolutely crucial to advancing this country's energy situation from its current state to a more positive, diversified future."

The legislation calls for:

• A larger Renewable Fuels Standard (RFS), calling for 36 billion gallons of annual renewable fuel use by 2022, similar to the Senate-passed language in HR 6.

• More Flexible Fuel Vehicles (FFVs), with automakers required to produce 50% FFVs by 2012, increasing 10% annually until 80% is reached by 2015.

• Expanded renewable fuels infrastructure, including an increase in the tax credit from 30% to 50% and from $30,000 to $50,000 per property through December 31, 2010. The infrastructure provisions apply to E85 pumps, but also to Blender Pumps, which dispense mid-level ethanol blends between 10% and 85%.

"With the U.S. consuming 145 billion gallons of gasoline annually, and that gasoline being refined from oil costing upwards of $90 per barrel, the current Renewable Fuels Standard threshold of 7.5 billion gallons of ethanol simply cannot be America's final goal," Jennings said.

"Ensuring that alternatives to oil continue on a growth path each year is necessary to the economic and environmental health of this nation.

"Outlining an ambitious, yet achievable new RFS such as this and moving beyond E10 to higher ethanol blends, through the use of E85 and Blender Pumps, are major steps in the right direction.

"Not taking action on these important energy issues is simply not an option for America's Congress."

The Renewable Fuels Strategy Act is supported by bipartisan co-sponsors Senators Lugar (R-IN), Cantwell (D-WA), Craig (R-ID), Johnson (D-SD), McCaskill (D-MO), and Klobuchar (D-MN).

For more information about ethanol or ACE call Kristin Brekke at 605-334-3381.