SLATER CALLS FOR CONTINUATION OF ETHANOL TAX EXEMPTION

Topics:  Rodney E. Slater, Ethanol

U.S. Department of Transportation
March 10, 1998

FOR IMMEDIATE RELEASE
Tuesday, March 10, 1998
Contact: Bill Adams
Tel.: (202) 366-5580
DOT 42-98

Transportation Secretary Rodney E. Slater sent the following letter to Senate Minority Leader Tom Daschle stating the Clinton administration’s firm support for continuation of the ethanol excise tax exemption in the reauthorization of the Intermodal Surface Transportation Efficiency Act of 1991.

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March 6, 1998

The Honorable Thomas A. Daschle
The United States Senate
Washington, D.C. 20510

Dear Senator Daschle:

The Administration strongly supports the use of alternate fuels as a meaningful way to address some of the Nation’s air quality, energy conservation and balance of payment problems. The future of U.S transportation will depend heavily on alternative fuels. For these reasons, the Administration is firmly in favor of continuing an ethanol excise tax exemption.

The Administration believes that the ethanol exemption does not reduce needed investments in roads, bridges and transit. Furthermore, given the current balances in the Highway Trust Fund and projected revenues, continuation of the exemption will not affect future Federal spending on transportation projects.

The extension of the tax exemption for ethanol use as a highway motor fuel is part of the Administration’s surface transportation reauthorization proposal, S.468, the National Economic Crossroads Transportation Efficiency Act (NEXTEA). Our proposal would extend the current exemption provision through September 30, 2006, because of the many benefits that domestic ethanol production provides to the Nation.

Sincerely,

signed

Rodney S. Slater