The Biotechnology Industry Organization (BIO) has recently sent thanking letters to senators John Thune, Amy Klobuchar and Dianne Feinstein for their supportive action in the withdrawal of the Volumetric Ethanol Excise Tax Credit (VEETC) and their steady policies on advanced biofuels.
The letter also has suggested for small changes in the signed accord to guarantee constant investments in the advanced biofuels sector.
Brent Erickson, Industrial & Environmental Section Vice President of BIO, has stated that BIO and its member organizations are appreciative of the policy support suggested by the senators for a stable government policy to assist the biofuel developers to venture into advanced commercial level projects. He talked on the tax agreement, which included a number of critical conditions for algae and cellulosic- based biofuels such as extension of production tax credit for cellulosic biofuels and quickened depreciation for cellulosic biofuel assets up to 2015 and inclusion of algae-based fuels in the government programs.
Nevertheless, he expressed his apprehensions about the introduction of annual ceilings on cellulosic manufacture in the recently introduced biofuels tax accord. He said that such annual ceiling will create uncertainty among the investors, and will limit the efficiency of the program in drawing more finance for biofuel projects. He also said that the accord does not have enough provisions to encourage marketing of newly developed fuel molecules, which are vital to tackle challenges in the transportation of the fuel segment.
He urged the senate to include an investment tax credit option for non-commercial type of advanced biofuel technologies and protraction of the alternative alcohols tax credit to encourage the efforts in commercializing alternative alcohols and butanol.