AEC Executive Director Brooke Coleman issued the following statement in response to today’s Senate Finance Committee Hearing: Reforming America’s Outdated Energy Tax Code.
“The advanced and cellulosic biofuels industry commends Chairman Wyden for restarting the conversation about energy tax reform. The title of the hearing is right. While it may have been prudent decades ago to dedicate federal energy tax policy to derisking fossil fuel investments, it no longer makes sense from either an economic or environmental perspective to put all our eggs in one basket. Investors are highly sensitive to protections offered by tax law, and today’s energy tax regime drives investment away from viable petroleum alternatives like cellulosic biofuels because oil tax breaks are richer and permanent. The short term fix is extending recently expired and existing tax incentives for clean energy this year, to buttress against those offered to fossil fuels permanently. But any broader discussion about America emerging as the leading energy innovator in the world starts and ends with the federal tax code. It simply won’t happen without serious energy tax reform.”