WASHINGTON - U.S. ethanol producers praised a bill introduced earlier this week by Senate Budget Chairman Kent Conrad (D-MT) and Senate Finance ranking member Chuck Grassley (R-IA) that would extend ethanol tax credits and a tariff on ethanol imports, Congress Daily reports.

The bill seeks to extend through 2015 the 45 cents per gallon volumetric ethanol excise tax credit (VEETC), the 10 cents per gallon small ethanol producers?? tax credit, and the $1.01 per gallon cellulosic biofuel producer tax credit. The VEETC and ethanol producers?? tax credit are set to expire at the end of this year; the cellulosic biofuel producer tax credit is set to expire at the end of 2012.

Additionally, the bill would extend the tariff on imported ethanol, which is set to expire at the end of this year, until the end of 2015.

The senators said that extending the tax credit is necessary because the use of biofuels is an appealing alternative to foreign oil and generates domestic economic activity. Grassley said that the biodiesel tax credit lapse, which expired last year, has already cost 29,000 jobs while imperiling 23,000 more. "We can't risk a repeat performance with ethanol, where 112,000 jobs are at stake," he said.

As for the tariff, Grassley said, "The United States already provides generous duty-free access to imported ethanol under the Caribbean Basin Initiative, but the CBI cap has never once been fulfilled. In fact, last year, only 25 percent of it was even used by Brazil and other countries."

Renewable Fuels Association President Bob Dinneen praised the moves. "Tax incentives aiding the expansion of America's ethanol industry are sound public policies by any economic, environmental or energy measure. Domestic ethanol use is lowering the price of gasoline, reducing imports of foreign oil, and helping stabilize and reinvigorate rural economies all across the country."

"NACS supports extending the blenders?? tax credit for biofuels because without it, these fuels are not economically viable," explained NACS Vice President of Government Relations John Eichberger. "The industry is mandated by federal law to sell these fuels and the tax incentives benefit retailers and consumers by offsetting some of the associated costs. To that end, NACS believes it is time to eliminate the import tariff in order to expand available, cost-competitive supplies. This will ease the ability of the industry to comply with federal mandates and reduce costs to consumers. Protectionist measures like this do not benefit consumers ?" they only lead to increased costs."