• WisBusiness

Tuesday, June 21, 2011

A detour in the ethanol debate


By Bob Sather
Last week, Wisconsin’s ethanol blenders kept a close eye on the Senate as they twice voted on whether or not to continue the existing Volumetric Ethanol Excise Tax Credit (VEETC) for ethanol producers.

Though the first attempt to end VEETC was not successful, a second amendment was passed late last week. Wisconsin’s state Senators remained consistent in their view of the amendment, with Senator Herb Kohl advocating for continued support of the ethanol industry and Senator Ron Johnson rejecting such support.

The votes cast by Wisconsin Senator Ron Johnson in support of eliminating the VEETC is a concerning one to this essential state industry. The votes do not take into account the economic impact of the existing ethanol industry in Wisconsin or its future growth and potential.

Wisconsin ranks ninth in the nation in ethanol production with overall capacity of more than 500 million gallons. There are nine large-scale ethanol plants in the state. In 2010, Wisconsin’s $1.168-billion ethanol industry produced 462 million gallons of ethanol.

Members of the Wisconsin Bio Industry Alliance are open to and seek proactive, constructive debate on the issue of subsidies and welcome a dialogue with our elected officials. A vote to discontinue this subsidy without equal consideration for long-time subsidies in place for Big Oil is very troubling. From a fiscal standpoint, the attack on ethanol is arbitrary and shows a lack of long-term vision for the American bio fuel industry.

The ethanol industry welcomes the opportunity to operate on a level playing field with Big Oil. For that to happen, however, all subsidies must be addressed. We import nearly $1 billion in oil each day, meaning that in one week, we spend more on imported oil than on an entire year of biofuel-related tax incentives. On an international level, global-fossil fuel subsidies reached $312 billion in 2009.

The VEETC was originally created as part of the American Jobs Creation Act of 2004. It provides a $0.45-per-gallon tax incentive to qualifying ethanol blenders of pure ethanol blended with gasoline. Through a market-based approach, the VEETC enhances the sustained, cost competitiveness of ethanol with gasoline, and provides long-term protection against a volatile petroleum fuel market. As such, VEETC has been a major factor behind the spectacular increase in ethanol use, production and continued innovation in the industry.

Together with the Renewable Fuel Standard, which requires a certain amount of biofuel to be blended into the nation’s existing transportation fuel supply, VEETC helps ensure that the goals of energy security and job creation are met with the production of clean, renewable, home-grown alternatives to foreign oil.  While the RFS encourages the use and consumption of ethanol, VEETC ensures that those volumes are met with domestically produced ethanol, rather than imported ethanol.  By ensuring that U.S. ethanol is used to satisfy the volumes mandated by RFS, VEETC allows our nation to achieve the intended goals of energy independence and domestic economic development.

The VEETC is also a critical part of the ethanol industry in our own state. This credit helps Wisconsin’s ethanol producers and blenders focus on further economic development efforts, opening up further opportunities, not just for physical expansion but also in adding more good-paying jobs to Wisconsin’s employment base.

According to a recent study, termination of the VEETC would result in an ethanol production reduction of nearly 38 percent nationwide, and a reduction of nearly 5,000 jobs in the state of Wisconsin alone.

It’s time to bring the debate back to a collaborative discussion between ethanol producers, industry representatives and our elected officials. This is not the time for knee-jerk reactions based on short-term impacts. Investing in ethanol production through producer subsidies requires a longer-term view, and we look forward to working with our state’s elected officials on this issue.

-- Sather is president of the Wisconsin Bio Industry Alliance and is the director of government relations and member of Ace Ethanol LLC, based in Chippewa Falls, Wis.

Labels:


Comments: 12

At June 22, 2011 at 8:20 PM, Blogger Deekaman said...

Perhaps our friends in the ethanol lobby might like to pay my food bill? They can claim all they want that it has no impact on food prices, but it doesn't pass the smell test. Therefore, not only are they hurting us to enrich themselves at the public trough, they are lying to us as well. Ethanol is a bad fuel. An energy "wash" at best and a complete failure without government subsidies and mandates. They are stealing our food and water while taking our money both in taxes and at the pump.

In the words of the Lefties in Madison,"SHAME!"

 
At February 19, 2017 at 10:30 PM, Blogger Himanshu Pal said...

Data is a set of values of qualitative or quantitative variables. An example of Microsoft more convenient to move or process.

 
At February 19, 2017 at 10:33 PM, Blogger Himanshu Pal said...

Data is a set of values of qualitative or quantitative variables. An example of Microsoft more convenient to move or process.
August 2017 Calendar

September 2017 Calendar

October 2017 Calendar

November 2017 Calendar

December 2017 Calendar

April 2017
Calendar


May 2017 Calendar

June 2017 Calendar

July 2017 Calendar more convenient to move or process.




 
At May 25, 2017 at 6:41 AM, Blogger Devyansh Rajvanshi said...

wood
rocket
printcalendartemplate
crocodile
bullet
Gun

 
At July 2, 2017 at 11:18 PM, Blogger allformtemtemplates said...

learn arabic


arabic language learning

 
At November 18, 2017 at 12:23 AM, Blogger dokter suketi said...

I like the post format as you create user engagement in the complete article. It seems round up of all published posts. Thanks for gauging the informative posts.
cara menggugurkan kandungan
obat aborsi
kalkulator kehamilan
tanda tanda kehamilan

 
At March 27, 2018 at 5:01 AM, Blogger dilip123 said...

ALL OF HAVE DONE SOME MISTAKES IN OUR DAY TO DAY LIFE..SO WE SHOULD APOLOGIZE FOR OUR MISTAKES ..
BEST WAY TO DO IT IS BY WRITING LETTERS TO CONCERNED PERSON ..GIVEN LINK IS THE BEST TO CHOOSE THE LETTERS

sample apology letter to boss
apology letter to girlfriend after fight
how to write an apology letter to a teacher
sincere apology letter
apology letter to wife
apology letter to customer

 
At May 2, 2018 at 12:14 AM, Blogger calendartemplate Free said...

Mothers Day Quotes From Daughter

 
At June 22, 2018 at 5:36 AM, Blogger Mark Parker said...

It isn't always a criminal offense to are attempting to find assist and mind from folks that keep enjoying in the challenge rely upon or writing such paper. Statistical dissertation help creator is the most asked professional dissertation writing carrier inside the contemporary records of instructional writing offerings.

 
At June 22, 2018 at 5:38 AM, Blogger Mark Parker said...

If we speak approximately super, reliability and comfort into your rate range prices than Best garbage disposal under 150 come to mind proper away are the which facilitates me to reduce strive within the kitchen.

 
At July 2, 2018 at 2:27 AM, Blogger Mark Parker said...

Students are regularly brief of the sensible publicity and technical know-how which is crucial for writing obligations. professional assignment help in melbourne vic has the writers who themselves went thru this case and knows the way to tackle the pressure of cut-off date whilst providing the excellent paper so that it will fetch good rankings.

 
At July 4, 2018 at 2:59 AM, Blogger Raya Resmana said...

Take every chance you get in life, because some things only happen once
Cara Mengobati Nyeri Ulu Hati Seperti Ditusuk Tusuk

 

Post a Comment

Back to BizOpinion main page

: See newer blog items : : See older blog items :

BizOpinion site feed
ADVERTISEMENT
ADVERTISEMENT

wisbusiness.com Social News

Follow Us

Site Sponsors

ARCHIVE

· January 2009
· February 2009
· March 2009
· April 2009
· May 2009
· June 2009
· July 2009
· August 2009
· September 2009
· October 2009
· November 2009
· December 2009
· January 2010
· February 2010
· March 2010
· April 2010
· May 2010
· June 2010
· July 2010
· August 2010
· September 2010
· October 2010
· November 2010
· December 2010
· January 2011
· February 2011
· March 2011
· April 2011
· May 2011
· June 2011
· July 2011
· August 2011
· September 2011
· October 2011
· November 2011
· December 2011
· January 2012
· February 2012
· March 2012
· April 2012
· May 2012
· June 2012
· July 2012
· August 2012
· September 2012
· October 2012
· November 2012
· December 2012
· January 2013
· February 2013
· March 2013
· April 2013
· May 2013
· June 2013
· July 2013
· August 2013
· September 2013
· October 2013
· November 2013
· December 2013
· January 2014
· February 2014
· March 2014
· April 2014
· May 2014
· June 2014
· July 2014
· August 2014
· September 2014
· October 2014
· November 2014
· December 2014
· January 2015
· February 2015
· March 2015
· April 2015
· May 2015
· June 2015
· July 2015
· August 2015
· September 2015
· October 2015
· November 2015
· December 2015
· January 2016
· February 2016
· March 2016
· April 2016
· May 2016
· July 2016
· August 2016
· October 2016
· December 2016
Copyright ©2013 WisBusiness.com All rights reserved. | WisOpinion.com | WisPolitics.com  |  Website development by wisnet.com LLC  | Website design by Makin’ Hey Communications