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For Immediate Release:
June 15, 2007

Bipartisan Group of Senators Fights for Economic and Energy Security

WASHINGTON, D.C. - America's energy independence is a pressing issue of not only economic and environmental security, but also national security: roughly 22 percent of the world's oil is in the hands of countries under U.S. or U.N. sanctions, and by some accounts only nine percent of the world's oil is in the hands of "free" countries. To help secure America's energy future, a bipartisan group of Senators, including Senators Ken Salazar (D-CO), Blanche Lincoln (D-AR), Maria Cantwell (D-WA), Wayne Allard (R-CO), Kent Conrad (D-ND), Larry Craig (R-ID) and Ben Nelson (D-NE) have introduced a bill to increase America's production of biofuels derived from cellulosic biofuels. Senators Gordon Smith (R-OR) and Ron Wyden (D-OR) are also co-sponsors.

"Increasing incentives for alternative fuels, and in particular cellulosic biofuels, moves us further down the path toward a new energy economy," said Senator Salazar. "Cellulosic biofuels production will provide our farmers and rural communities a potentially prosperous economic avenue, and has the potential to be an immediate `difference-maker' in America's move towards energy independence. The more we diversify our energy portfolio the more Colorado, with its rich agricultural resources, will prosper."

"In order to make our country more energy independent, we must commit to a necessary, long-term investment in such alternative sources of energy as cellulosic biofuels," Senator Lincoln said. "Rural America has led the way by producing homegrown renewable fuels, and we should give our producers the tools they need to continue that progress."

"Market-based approaches to increasing our use of clean, domestic sources of fuels will diversify our energy portfolio and increase our national security. Cellulosic ethanol has the promise to be part of a brighter energy future," said Allard. "I am pleased to cosponsor this amendment to provide a tax credit for the production of cellulosic ethanol."

"Right now, we're forced to do business with unstable countries, instead of American farmers and innovators," said Cantwell. "We need to transform our energy system and develop new ways to get fuel from local crops and agricultural waste. The next chapter in America's energy story needs to be about getting more for our dollars and growing our economy, rather than fossil fuels and record oil company profits."

"It's time to look to the Midwest rather than the Mid East for our energy. We can turn to our farm fields to produce domestic fuels like biodiesel," Senator Conrad said. "Our dependence on foreign energy threatens both our national security and our economic security. Unless we change course, we will become even more dependent on foreign energy sources and subject to even higher prices and uncertainty."

"To become more energy independent, we must seek innovative solutions that do not dip into our valuable food supply. My home State of Idaho has millions of public and private acres with the needed cellulose, and we are hopeful that our communities and land will benefit from clean energy innovations," Senator Craig said.

"We've come a long way in making ethanol a cornerstone of our nation's energy policy. To complement the continued increase in the production of ethanol, we need to promote the development of biofuels created from cellulosic materials," said Nebraska's Senator Ben Nelson. "Along with my Biofuels Innovation Program legislation, this bill help diversify our domestic supply of biofuels and I'm pleased to join Senator Salazar in this effort."

The bipartisan cellulosic biofuels bill would create a $1.28 producer tax credit for each gallon of eligible methanol, ethanol, butanol or synthetic gasoline or diesel produced and sold as fuel (up to 1 billion gallons). The fuel must be derived from a specific renewable cellulosic resource such as: (i) dedicated energy crops and trees; (ii) wood and wood residues; (iii) plants; (iv) grasses; (v) agricultural crop residues; (vi) agricultural fibers; and (vii) cellulosic matter derived from municipal solid waste.

The full text of the bill (PDF) is available.

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