Sen. Amy Klobuchar, D-Minn., on June 30 introduced the introduction of a bundle of bipartisan payments to increase the supply of low-carbon renewable fuels, incentivize using larger blends of biofuels, and cut back greenhouse gasoline (GHG) emissions.
The Biofuel Infrastructure and Agricultural Product Market Enlargement Act, co-led by Sen. Joni Ernst, R-Iowa, would increase the supply of low-carbon renewable fuels within the market by offering for federal funding in renewable gas infrastructure, suck as blender pumps and storage tanks.
The Clear Fuels Car Act, additionally co-led by Ernst, would incentivize the manufacture of flex gas autos (FFVs) able to using larger blends of unpolluted fuels by making a $200 refundable tax credit score for every FFB manufactured for the light-duty automobile market. The credit score could be made accessible to authentic tools producers (OEMs) and sundown after 10 years.
The Low Carbon Biofuel Credit score Act, co-led by Sen. John Thune, R-S.D., would create a tax credit score for every gallon of gas containing 15 % or extra ethanol content material. The invoice would permit an ethanol blender or gas retailer to say a 5 cent tax credit score for every gallon of E15 blended or offered, and a ten cent tax credit score for every gallon of larger of E15 blended or offered. The credit score could be absolutely refundable and transferable for small retailers.
The payments are supported by the Minnesota Corn Growers Affiliation, Renewable Fuels Affiliation, Development Vitality, American Coalition for Ethanol and Poet LLC.
The RFA issued an announcement in assist of the Biofuel Infrastructure Funding and Market Enlargement Act and the Clear Fuels Car Act. “These two payments acknowledge that American-made ethanol can and will play a central position in our nation’s efforts to shortly cut back greenhouse gasoline emissions from the transportation sector,” stated Geoff Cooper, president and CEO of the RFA. “Immediately’s ethanol already cuts GHG emissions by practically half in comparison with gasoline, and the trade is on a path towards producing ethanol with net-zero emissions by mid-century or sooner. However our nation can not absolutely capitalize on ethanol’s low-carbon advantages until extra retail stations supply larger blends and extra autos are produced that may run on flex fuels like E85. The laws launched immediately would assist tackle each of these market bottlenecks whereas supporting rural communities throughout the heartland on the similar time. We thank Sens. Klobuchar and Ernst for his or her imaginative and prescient and bipartisan dedication to a cleaner, greener, and extra affluent future.”
ACE additionally applauded introduction of the three payments. “When infrastructure laws discussions started earlier this yr, ACE known as on congressional leaders to supply incentives for retailers to promote E15 and E85 and for automakers to renew the manufacturing of versatile gas autos to realize rapid local weather advantages from clear vitality infrastructure,” stated Brian Jennings, CEO of ACE. “ACE members are happy to see the introduction of those bipartisan payments, which embody our suggestions and would assist capitalize on ethanol’s potential to make near- and long-term reductions in greenhouse gasoline emissions.
“As Congress and the Administration discover methods to decrease the carbon depth of U.S. transportation fuels, we’re inspired by efforts like these payments that search to stage the enjoying area in order that ethanol can compete pretty and meet the demand for low carbon fuels,” Jennings continued. “No different transportation gas supply can supply the local weather saving advantages ethanol supplies and we encourage Congress to comply with the lead of Sen. Klobuchar, Sen. Ernst, and Sen. Thune in acknowledging ethanol’s potential to quickly decarbonize the transportation sector.”
Development Vitality additionally spoke out in assist of the payments. “Increased ethanol blends proceed to develop in reputation amongst drivers trying to save cash whereas defending our local weather,” stated Emily Skor, CEO of Development Vitality. “This legislative push gives a way to place larger biofuel blends inside attain of drivers quicker than ever, so we are able to make a larger distinction for the local weather immediately. The truth is, a nationwide transition to E15 could slash emissions by 17.62 million tons per yr – equal to eradicating roughly 3.85 million autos from the street. E15 can also be a less expensive gas averaging $0.05 to $0.10 cheaper per gallon when in comparison with common gasoline. We applaud Senator Klobuchar and her colleagues for making biofuels a prime precedence for congressional leaders, and we urge lawmakers to make the most of this chance to assist America’s farm communities, save drivers cash, and cut back carbon emissions.”