Biofuel Bills Introduced
Klobuchar: Biofuel Package Aims to Expand Use, Availability
OAKHURST, N.J. (DTN) -- U.S. Senator Amy Klobuchar, D-Minn., Wednesday 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.
Co-led with Sen. Joni Ernst, R-Iowa, the senators said 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 with Ernst -- would incentivize the manufacture of flex-fuel vehicles 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 and sunset after a period of 10 years.
The Low Carbon Biofuel Credit Act, co-led with Sen. John Thune, R-S.D., would create a tax credit for each gallon of fuel containing 15% or greater ethanol content. 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.
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