Ace Letter On Obama Inter Agency Biofuels Working Group

November 20, 2009

The Honorable Steven Chu Secretary U.S. Department of Energy 1000 Independence Avenue, SW Washington, D.C. 20585 The Honorable Tom Vilsack Secretary U.S. Department of Agriculture 1400 Independence Avenue, SW Washington, D.C. 20250 The Honorable Lisa Jackson Administrator U.S. Environmental Protection Agency 1200 Pennsylvania Avenue, NW Washington, D.C. 20460

Dear Secretary Chu, Secretary Vilsack, and Administrator Jackson: On behalf of the nearly 1 million individuals and employees represented by members of the American Coalition for Ethanol (ACE), the nation’s largest grassroots biofuels advocacy organization, I write to express our appreciation for President Obama’s unwavering support for ethanol and other biofuels as embodied in his May 5, 2009, Presidential Biofuels Directive. This historical directive established a Biofuels Interagency Working Group to be co-chaired by each of you, and that would coordinate with the National Science and Technology Council’s Biomass Research and Development Board. Three of the priorities the President directed that the Working Group address include: • • •

Developing the nation’s first comprehensive biofuel market development program; Coordinating infrastructure policies for biofuels; and Identifying new policy options to promote the environmental sustainability of biofuels

President Obama followed his directive by writing the Governors’ Biofuels Coalition (GBC), a coalition of 36 U.S. governors committed to increased production and use of biofuels, on May 27, 2009, thanking them for their efforts and leadership in promoting a strong future for biofuels. In that letter, he noted the governors’ helpful role in the development of the directive, and welcomed the GBC’s support in implementing it.

2010 will be a watershed year for the biofuels industry. The volumetric ethanol excise tax credit (VEETC), which helps keep ethanol-blended fuel cost-effective relative to gasoline, will be up for reauthorization in Congress. EPA will determine what midlevel blend of ethanol, beyond E10 which is already blended in over 80 percent of the nation’s gasoline, will be allowed for use by conventional automobiles. Petroleum marketers around the country will take advantage of programs and incentives to install “blender pumps” to dispense midlevel blends of ethanol. The Renewable Fuels Standard II (RFS2) rule will be implemented by EPA, and this rule will determine the level of cellulosic biofuel to be introduced into commerce for the first time. Finally, DOE will complete its current round of testing of higher ethanol blends. The President’s important goals cannot be met without strong leadership from your Working Group on these and many other issues, and it is critical that we all work together to identify how biofuels can help improve the nation’s economy and environment. The significance of these issues and the efforts of the Working Group are amplified as the President prepares to convene the Forum on Jobs and Economic Growth on December 3 at the White House. As the Administration works to identify how to accelerate job creation in the U.S., the role that domestic biofuels play in developing green jobs which cannot be exported and that will get our economy moving again on clean energy should be highlighted during this forum. Furthermore, Congress and the Administration will focus on historic climate, energy, and tax legislation next year, policies that can create millions of jobs, lower energy bills, reduce dependence on foreign oil, and truly pivot our economy to one based on clean energy instead of fossil fuels. The nation depends upon the three of you, and your agencies, to ensure that the President’s goals for expanding the development and use of renewable, homegrown biofuels are realized. It is our hope that the Working Group can immediately become fully engaged in all these issues in the coming months, convening meetings with key stakeholders, and developing Administration policy positions that will foster greater energy security for America, the creation of high-skill, high-wage green jobs in the biofuels sector, and progress toward a clean energy economy. ACE appreciates your willingness to work through the Working Group to define and implement a broad vision for the expanded use of biofuels, and looks forward to working closely with you and your staff on this task in the months ahead. Sincerely,

Brian Jennings, Executive Vice President American Coalition for Ethanol (ACE)

cc: The Honorable Carol Browner, Assistant to the President for Energy and Climate Change