Biofuels industry said Pompeo incentive-repeal bill will slow down alternative fuels

In Washington, Novozymes said a bill introduced by Rep. Mike Pompeo (R-Kan.) would make harder to bring renewable fuels to market, impacting consumers and sacrificing jobs unnecessarily. Pompeo’s bill, H.R. 3308, would repeal the ethanol, cellulosic biofuel and alcohol fuels tax credit; the tax incentive for biodiesel and renewable diesel; and the investment tax credit for alternative fuel vehicle refueling property.

“Biofuels represent the type of innovation and scientific discovery that are reenergizing our economy. Alternative energy is already replacing fossil fuel, saving consumers money, creating jobs and protecting the environment,” Adam Monroe, President of Novozymes North America, said. “Repealing the policy support for second-generation biofuels will make it harder to bring renewable energy to market – and give consumers the choices they deserve at the pump. We need consistent policy support.” Monroe recently discussed the energy titles in the REFRESH Act.

A recent analysis by economists from the University of Wisconsin and Iowa State University found growth in ethanol production reduced gasoline prices by an average of $0.25 per gallon, or 16 percent, from 2000 – 2010. Iowa State Professor Dermot Hayes, one of the report’s authors, said if there was an immediate reduction in ethanol output, we would see “a dramatic increase in U.S. gasoline prices and the resulting increase in U.S. gasoline imports…”

Growth Energy CEO Tom Buis added: “This legislation is a classic example of why this country has been dependent on foreign oil for the last 40 years, and exactly why we will continue to be addicted for the next 40 years.”