ACE and Advanced BioFuels Groups Urge Congress to Protect the RFS

Dear Leader Reid, Speaker Boehner, Leader McConnell and Leader Pelosi;

We are writing to express our strong support for extending and maintaining federal policies that are critical to the ongoing development of advanced biofuels.

As you know, Congress made an historic commitment to advanced biofuels in the Energy Independence and Security Act of 2007, as part of a comprehensive strategy to reduce oil dependence, improve national security, and spur economic growth. With gas prices recently spiking to record levels and remaining highly volatile, it is self-evident that the United States needs to develop homegrown alternatives to oil to protect American consumers at the gas pump.

The availability of cellulosic biomass resources, such as sustainably harvested crop residues, waste materials, and perennial crops is substantial and well documented. The advanced and cellulosic biofuels industry is now in the process of building new plants, innovating at existing production facilities with emerging technologies, and introducing new product streams that will allow the renewable fuels sector to become more profitable, diversified and efficient. Significant investment dollars are being secured with the expectation that Congress will remain committed to advanced biofuels. Rapidly commercializing these technologies will provide substantial oil savings to consumers with far lower environmental impacts than today’s fuels.

Specifically, we are asking for three things to ensure continuity for the advanced biofuels sector: First, Congress must protect the federal Renewable Fuel Standard (RFS). The RFS is the cornerstone for building an advanced biofuels industry in the United States. It not only provides the advanced biofuels industry with a long-term demand signal, but includes critical innovation support for new feedstock technologies that will enhance sustainable rural livelihoods and energy security. Providing a stable policy landscape will assure a robust build-out of advanced and cellulosic biofuel facilities and ensure continued U.S. leadership in the global clean energy marketplace. Any effort to open up the RFS would send a chilling signal to a sector where decades-old policies and incentives continue to push investment dollars to the incumbent petroleum industry.

Second, Congress should extend existing tax incentives for cellulosic biofuels – the Production Tax Credit (PTC) for cellulosic biofuels and the accelerated depreciation allowance for cellulosic biofuels facilities – that expire at the end of the year. These policies, similar to those offered to fossil fuel industries on a permanent basis, drive private-sector investment and level the tax playing field. Third, we support ongoing efforts to more comprehensively reform energy tax policy to level the playing field between incumbent industries and cleaner alternatives and enhance U.S. competitiveness in the global $2.4 trillion clean energy marketplace. A reformed tax policy should reflect 21st century energy challenges by complementing the RFS, rewarding environmental performance and driving innovation. We appreciate your ongoing support for advanced biofuels and look forward to working with you on this important issue.

Sincerely, Rolf Nordstrom Executive Director Great Plains Institute

Jeremy I. Martin, Ph.D. Senior Scientist, Clean Vehicles Program Union of Concerned Scientists

Carol Werner Executive Director Environmental and Energy Study Institute

Jim Kleinschmit Director, Rural Communities Program Institute for Agriculture and Trade Policy

Nathanael Greene Director of Renewable Energy Policy Natural Resources Defense Council

cc: Senator Max Baucus Senator Jeff Bingaman Senator Barbara Boxer Representative Dave Camp Senator Orrin Hatch Senator James Inhofe Representative Sandy Levin Senator Lisa Murkowski Representative Richard E. Neal Representative Pat Tiberi Representative Fred Upton Representative Henry Waxman

Brian Jennings Executive Vice President American Coalition for Ethanol

Brooke Coleman Executive Director Advanced Ethanol Council

Michael McAdams President Advanced Biofuels Association

Brent Erickson Executive Vice President, Industrial and Environmental Division Biotechnology Industry Organization