NCGA Supports Biofuel Infrastructure Legislation

July 1, 2021

NCGA Supports Biofuel Infrastructure Legislation

Jul 1, 2021

Key Issues:Ethanol

Author: Julie Busse

The National Corn Growers Association thanks Sens. Amy Klobuchar (D-Minn.) and bipartisan co-sponsors for the introduction of three new bills that would help expand the use of higher ethanol blends in the marketplace and thanks bipartisan House members for introducing and supporting similar legislation.  

 

“The three pieces of legislation introduced by Senators Klobuchar, Ernst and Thune offer pathways to include biofuels in ongoing congressional discussions over an infrastructure package and clean energy incentives,” said NCGA Director of Public Policy and Renewable Fuels Kathy Bergren. “Ethanol’s low carbon and environmental benefits should be recognized and utilized in any infrastructure package. Getting higher blends of ethanol into the marketplace and more vehicles on the road that can use those higher blends further reduces greenhouse gas emissions, provides consumers more options, and gives farmers a stable market for their sustainable corn crop.”

 

  • The Biofuel Infrastructure and Agricultural Product Market Expansion Act, S. 2271 co-sponsored by Senator Joni Ernst (R-Iowa), would authorize a higher biofuel blends infrastructure grant program through the U.S. Department of Agriculture. The bill increases the funding authorization and duration of the grant program.

 

  • The Clean Vehicles Act, S. 2267, also cosponsored by Senator Ernst, would establish a $200 per vehicle refundable tax credit for manufacturers for the production of flex-fuel vehicles (FFVs), as well as re-establish CAFE/GHG credits for FFVs.  The credit would sunset after 10 years.

 

 

 

  • The Low Carbon Biofuels Credit Act, S. 2262 co-sponsored by Senator John Thune (R-S.D.), would establish a 5 cent per gallon tax credit for sales of 15% ethanol blends and a 10 cent per gallon tax credit for sales of blends greater than 15%.  The credit would be fully refundable.

On the House side, Representatives Cindy Axne (D-Iowa) and Adrian Smith (R-Neb.) also introduced the Low Carbon Biofuels Credit Act yesterday, as H.R. 5254.   House legislation to authorize a higher biofuel blends infrastructure grant program at USDA was introduced earlier this year. Led by Representatives Axne and Rodney Davis (R-Ill.), the House biofuels infrastructure bill, H.R. 1542, now has 18 bipartisan co-sponsors.

 

For more information on all three Senate bills, click here.