News
Growth Energy among biofuels groups welcoming relief in COVID aid package
The Omnibus Appropriations and Coronavirus Relief Package includes several provisions that biofuels groups say will support the industry.
Chris Bliley with Growth Energy tells Brownfield the legislation explicitly identifies renewable fuel producers as entities eligible to receive COVID-19 emergency relief aid unlike the CARES Act.
“There’s about $13 billion (for) the USDA Secretary to use in a variety of ways to provide relief to Rural America, and in that he has discretion to provide relief directly to biofuel producers.”
He says some tax credits were extended in the coronavirus relief bill, including the Second Generation Biofuel Producer credit.
“These are important for any type of certainty for biofuel producers. The Second Generation tax credit is really for cellulosic production, it’s $1 per-gallon. And it was set to expire, so this provides another year of certainty.”
Similarly, Bliley says the extension of the Section 45Q tax credit for carbon sequestration provides certainty as states look to address climate goals and turn to biofuels for innovative solutions.
He adds the replenishment of the Paycheck Protection Program will help ethanol plants that are struggling financially because of reduced fuel demand.
