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Jefferson
City, MO – Legislation that promises to streamline
often complex and confusing tax issues surrounding E85
blending finally passed the U.S. Senate today by an
overwhelming vote of 69 to 17. The Volumetric Ethanol
Excise Tax Credit (VEETC) provision contained in this
FSC/ETI Jobs Bill,
will significantly improve the distribution and
availability of both E85 and biodiesel fuels. The U.S.
House of Representatives passed the bill with a 280 to 141
vote last week, and the legislation has been sent on to
President Bush, who has ten days to sign.
“We have been
working on this legislation for about three years,” said
Phil Lampert, Executive Director of the NEVC. “It is
great to see all the hard work result in success!”
If President
Bush signs the legislation, E85 will be blended and
delivered with the same ease as gasoline.
“We feel
confident the President will sign this important bill,”
commented Lampert.
VEETC will include the
following advantages for E85:
- Any terminal
location that now stores fuel ethanol and gasoline is a
potential E85 distribution point.
- Any terminal
operator, refiner or marketer (distributor, jobber or
retailer) who buys gasoline and ethanol as separate
commodities can receive the $.52 per gallon federal
incentive and produce ethanol blends of up to E85
regardless of their company’s tax obligations.
- These same
suppliers can sell E85 to any reseller or end user with
out concern about the customer’s tax obligations. This
could open E85 sales up to agriculture uses and off road
equipment that can be converted to E85.
- E85 could be
sold through retail service station blending pumps if
those stores also converted their premium gasoline tanks
to ethanol.
- E85 blends
can be blended and sold with no loss of cash flow due to
funds locked in escrow until year-end income tax
settlement.
- E85 profit
margins can more easily be determined at the time of
sale with out having to wait until year-end tax
settlement.
The bill will
also include major benefits for biodiesel blending and
will lower the cost of biodiesel to consumers and fleets.
“We would like to thank such organizations as the National
Corn Growers Association and the Renewable Fuels
Association for their assistance in addressing VEETC,”
added Lampert. "While
the effort to pass the VEETC enjoyed broad and bipartisan
support in the Senate, Senator Grassley and Senator Baucus,
the Chairman and Ranking Member of the Finance Committee,
were instrumental in shepherding the VEETC into the
FSC/ETI bill. Absent their personal intervention, this
critical legislation would not have been approved in this
session of the Congress.”
About four
million owners of E85-compatible vehicles will be able to
benefit from the passage of VEETC. Vehicles such as the
Ford Taurus, the Dodge Ram, and the GM Tahoe can fuel with
E85.
For a complete
listing of E85 compatible vehicles or E85 fueling
facilities, visit the National Ethanol Vehicle Coalition
website at
www.E85Fuel.com.
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