Federal Ethanol Incentives and Laws ...
Legislation has been a key element in advancing the ethanol industry. Requiring petroleum marketers to meet clean air standards and cities to reduce their levels of pollution have lead to the high demand for oxygenated fuels.
MTBE, a petroleum-based product had been widely used as a fuel oxygenate until it was discovered that this suspected carcinogen was contaminating ground water. MTBE bans have taken effect in several states and more will take effect in the near future. Ethanol is the oxygenate of choice to replace MTBE.
Tax credits for producers, blenders and vendors have also been key to the growth of the ethanol industry in the U.S.
The Volumetric Ethanol Excise Tax Credit (VEETC), signed into law in October 22, 2004 extends the ethanol tax incentive at 5.2¢ per gallon through December 31, 2010.
Click here for some highlights of the VEETC.
In August 2005, President George W. Bush signed a comprehensive Energy Bill which includes a Renewable Fuels Standard (RFS). The RFS requires that 7.5 billion gallons of ethanol be included annually in the nation's transportation fuel supply by the year 2012.
Here are links to some key legislative elements:
Advanced Energy Initiative Federal E85 Incentives and Laws
Position Papers from the RFA site
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