Group applauds extension of ethanol provisions

Growth Energy, an advocate for green fuel alternatives, applauded Sens. Chuck Grassley (R-Iowa) and Kent Conrad (D-N.D.) for introducing legislation that extends the Volumetric Ethanol Excise Tax Credit and ethanol tariffs for 5 years, and the cellulosic tax credit for 3 years. 

"Extending these measures will ensure job growth and economic development across the entire country -- all while reducing our dependence on foreign oil and cleaning our skies," said Tom Buis, the group's CEO, in prepared remarks, adding that without the extensions "hundreds of thousands of jobs and billions of dollars" would be drained from the economy.

Grassley said the recent lapse of the biodiesel tax credit in 2009 cost the country 29,000 jobs and another 112,000 positions could be lost if Congress fails to extend the ethanol provisions. 

"We can't risk a repeat performance with ethanol," the senator said in prepared remarks. 

Brazil, which competes with the U.S. on the ethanol market, criticized the bill and called on Congress to repeal its ethanol tariffs. The South American country recently eliminated its tariffs on imported ethanol.