A draft of the bill could be released in the next few days, committee spokesperson Matt Beck told the newspaper. The Hill, a congressional newspaper cited by the report, [image-nocss] said that the committee's action on the bill would likely be delayed until September.
Senate Democratic leaders are working on a broader energy bill that could include subsidies for biofuels, the report added.
Senator Jeff Bingaman (D-N.M.), who chairs the Energy & Natural Resources Committee, has said that the current 45-cents-per-gallon tax credit would not be automatically continued, said the National Association of Convenience Stores (NACS). On Tuesday, NACS sent a letter (click here) to representatives Earl Pomeroy (D-N.C.) and John Shimkus (R-Ill.) in support of a provision in their bill, H.R. 4940, which would extend the ethanol tax credit until Dec. 31, 2015.
"At a time when retailers are being forced to sell a renewable fuels product, NACS does not believe it is appropriate to remove or reduce a critical mechanism that enables retailers to do so in a competitive and consumer-friendly manner," wrote NACS vice president of government relations John Eichberger. "The extension of the ethanol tax credit will facilitate the continued marketing of ethanol-blended fuels in a manner that is price competitive with gasoline."
Rep. Leonard Boswell (D-Iowa) said that "it may come down to either extending the ethanol credit another year at 36 cents or not extending it at all."
The chairman of the House Agriculture Committee, Rep. Collin Peterson (D-Minn.) said a cut of that size could doom the bill. He also said a proposal floated by an ethanol industry groupa coalition of U.S. ethanol supportersto shift some of the subsidy into retrofitting gas stations and convenience stores to sell higher ethanol blends was considered too late and too complex, said the report.
The proposal, by the group Growth Energy, has split the industry the Register said. Groups including the Renewable Fuels Association (RFA) and the National Corn Growers Association (NCGA) said they want the existing tax credit extended.
Growth Energy spokesperson Chris Thorne said the proposed cut showed why his group's plan was needed. Biofuel tax credits "are proving themselves vulnerable," while redirecting the money into infrastructure "is a lasting improvement that will outlive the funding," he told the paper.
Meanwhile, the fuels group reached a deal with groups representing gasoline distributors and retailers to address their liability concerns linked to sales of higher ethanol blends. They are all backing a bill introduced Tuesday that would set up a process for the Environmental Protection Agency (EPA) to certify the safety of tanks, pumps and other equipment, said the report.
Growth Energy called for the redirection and eventual phasing out of government support for ethanol in return for a level playing fieldinfrastructure investments that will create competition in the fuels market and give consumers true freedom to choose their fuel.
"We are confident that in a fair and open market, ethanol can and will compete successfully against oil," said Tom Buis, CEO of Growth Energy, in a statement. "Creating that competitive market will save money for both taxpayers and motorists, since it takes the control out of the hands of Big Oil and puts it into the hands of the consumer."
The "Fueling Freedom" plan calls for the phasing out of current ethanol supports over time, by redirecting a portion of those funds to build out the infrastructure for the distribution and use of ethanol, and shifting the remaining portion away from the oil companies to opening the market. The primary elements of the plan include: Funds currently going to the oil industry as an incentive for blending ethanol into gasoline (the VEETC) would be redirected to provide backing for the build out of distribution infrastructure for ethanolsuch as tax credits for retailers to install 200,000 blender pumps and federal backing of ethanol pipelines. This will provide Americans the access to choose ethanol in an open and free market, and would allow for the elimination of the tax supports over time in exchange for that level playing field. Requiring that all automobiles sold in the United States be flex-fuel vehiclesas many as 120 million. This requires no additional cost to taxpayers and a minimal cost (about $120 per vehicle) to vehicle manufacturers.
Growth Energy's Fueling Freedom plan, once implemented, would build out the infrastructure in the United States to create a path that leads to a genuinely free marketan open market that is free of government supports. Redirecting monies currently paid to oil companies to blend ethanol into gasoline toward infrastructure improvements would enable consumers to choose between gasoline and renewable, homegrown ethanol, it said.
"Fifty-five years ago, President Eisenhower, himself a former general, proposed an Interstate Highway System to give Americans the freedom to travel our country," said Growth Energy Co-Chair Gen. Wesley K. Clark (Retired). "Today, Growth Energy is proposing to give Americans the freedom to choose an American fuel to travel those highways. By creating an open fuel market, we can break OPEC's monopoly, improve our national security and create jobs here at home."
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