Senator Grassley and a group of 7 bipartisan cosponsors introduced the Domestic Energy Security Act of 2011. For all provisions, this bill would extend them through 2016 – in essence this is a 5 year bill. The following is a humble attempt to walk through them quickly.
- The bill would keep in place the current VEETC structure for 2012 and 2013, but reduce the value to $0.20 per gallon and $0.15 per gallon, respectively.
- In 2014, VEETC would transition to a variable tax credit tied to the price of oil. The variable rate starts at 30 cents and steps down 6 cents for every $10/bbl over $50/bbl. At oil prices above $90 a barrel, no incentive would be available.
- This bill extends the cellulosic producer tax credit, valued at $1.01 per gallon, through 2016.
- This bill enhances the current alternative fuel vehicle refueling property credit (think blender pumps here) by making it available to 100% of the total cost, provided qualified applicants for the credit can show the infrastructure is being used for ethanol blends that include at least one offering of an ethanol blend between E20 and E85.
- This bill extends the secondary tariff on imported ethanol through 2016. It reduces the value to $0.20 in 2012 and $0.15 for years 2013-2016.