Jun 30, 2021
WASHINGTON – U.S. Senator Amy Klobuchar (D-MN) announced the introduction of a new package of bipartisan bills to expand the availability of low-carbon renewable fuels, incentivize the use of higher blends of biofuels, and reduce greenhouse gas emissions.
"Diversifying our fuel supply, introducing higher blends of biofuels to the market, and making sure retailers have the right equipment to take advantage of these blends will promote clean energy and support our rural economies,” said Senator Klobuchar. “This biofuels infrastructure package will make cleaner fuels more accessible – ultimately benefiting both the economy and the environment.”
“Increasing access to biofuel is critical to our rural economies in Iowa, and across the Midwest, and offers cleaner and more affordable choices for consumers. These bills build on our bipartisan work to support farmers and the biofuel industry who feed and fuel the world,” said Senator Ernst.
“Homegrown biofuels, especially higher-octane blends like E15, offer readily available emissions reductions that are mistakenly being overlooked in the current energy debate,” said Senator Thune. “Biofuels not only support a critical market for our farmers and deepen American energy security, but they offer a lower-carbon fuel for domestic use and export without the unresolved costs, labor issues, and resource constraints of the all-in push for vehicle electrification. This bill will help further expand consumer access to E15, building off the long-soug ht ability to sell the fuel year-round, which was secured in 2019.”
Co-led by Senator Joni Ernst (R-IA), the Biofuel Infrastructure and Agricultural Product Market Expansion Act would expand the availability of low-carbon renewable fuels in the marketplace, resulting in cleaner air, lower fuel process, and rural economic vitality. This legislation would provide for federal investment in renewable fuel infrastructure like blender pumps and storage tanks, allowing small businesses across the nation to provide cleaner and more affordable options to American drivers.
Building on this effort to diversify the use of renewable fuels in the automotive industry, the Clean Fuels Vehicle Act – also co-led by Ernst – would incentivize the manufacture of Flex Fuel Vehicles (FFVs) capable of utilizing higher blends of clean fuels. The bill would create a $200 refundable tax credit for each FFV manufactured for the light duty vehicle market. The credit would be made available to Original Equipment Manufacturers (OEMs) and sunset after a period of 10 years.
The Low Carbon Biofuel Credit Act, co-led by Senator John Thune (R-SD), would create a tax credit for each gallon of fuel containing 15 percent or greater ethanol content (E15). The bill would allow an ethanol blender or fuel retailer to claim a 5-cent tax credit for each gallon of E15 blended or sold and a 10-cent tax credit for each gallon greater than E15 blended or sold. This legislation would also allow the credit to be fully refundable and transferable for small retailers.
Read the original press release here.