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 ATA Writes Senate Leadership in Support of Measures that Support the Advancement of Biofuels in the Upcoming Energy Bill

Public Policy section: picture of the Capitol dome

PubZone1
July 20, 2010
 
The Honorable Max Baucus
Chairman, Committee on Finance
United States Senate
511 Hart Senate Office Building
Washington, DC 20510-2602
 
The Honorable Charles Grassley
Ranking Member, Committee on Finance
United States Senate
135 Hart Senate Office Building
Washington, DC 20510-1501
 
Dear Chairman Baucus and Ranking Member Grassley:
 
On behalf of the members of the Air Transport Association, I am writing to voice strong support for the expedited development and commercialization of advanced biofuels. As the Committee on Finance works to put together a comprehensive tax package for the upcoming energy bill, I urge you to include measures that promote the expansion of biorefinery capacity for the production of advanced biofuels in significant commercial volumes in the shortest time possible.
 
The U.S. airline industry is anxious to see the development and commercialization of advanced biofuels in the aviation sector. Unlike many other major consumers of energy, airlines actively support initiatives to promote the development of biofuels for our industry and are enthusiastic about the prospect of becoming customers for this emerging industry. We believe that sustainable bio-jet fuel, made from biomass and other feedstocks is critical to our desire for clean, abundant, renewable, domestically produced jet fuel.
 
Biofuels companies across the country are poised to produce substantial quantities of bio-jet and other fuels from a variety of feedstocks, but federal government policy is the key to making that happen. Among other policy initiatives, it is essential that certain tax credits be extended at or above their current levels for as long as is possible and that they ensure eligibility for fuels made from all promising "next-generation" feedstocks and refining technologies.
 
First, it is vital that the existing $1 per-gallon tax credit for distillates like bio-jet is extended. This credit is necessary to promote the production of aviation biofuels and I commend you for including this credit in your draft bill. The second credit is for alternative alcohols (alcohol fuels other than ethanol) and is currently set at 60 cents per gallon. Like bio-jet, new alternative alcohols such as biobutanol, a "drop-in" biofuel made from biomass, are on the horizon and their development should be encouraged.
 
Just as other biofuel tax credits led to the successful development of the ethanol and biodiesel industries, so too will these credits for new, emerging biofuels. Without consistent federal support at levels sufficient to move the market, the commercialization of these new and vitally important biofuels will be unnecessarily stifled and their significant benefits will be delayed.
 
Thank you for your tremendous efforts to put the country on the path toward energy independence and a more secure sustainable future. We stand ready to assist you in moving this vital energy legislation forward.
 
Sincerely,
James C. May
 

cc: Majority Leader Harry Reid


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