Group requests $5 billion in tax subsidies for gasoline refiners.
AMI has joined a coalition of food and agriculture groups in signing a letter to Congressional leaders in support of the development of second generation biofuels. The group urged Congress to support policies in the economic stimulus package to help commercialize cellulosic and other advanced biofuels that will end the reliance on food and feed sources for fuel production.
To help finance new investments in second generation fuels, the groups are requesting that Congress redirect a $5 billion-a-year tax subsidy for gasoline refiners who blend corn ethanol to a production tax credit for the producers of cellulosic and advanced biofuels.
“As you know, a five-fold increase in the production of conventional biofuels since 2000 - in combination with other factors, such as rising energy prices, poor weather and global demand - has contributed to volatile commodity prices and a sustained period of commodity and food inflation. Investing in second generation biofuels is one way Congress can help ensure that we are not pitting our energy policies against the need for affordable food,” the letter concludes.
To read the letter, click here.