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Klobuchar helps introduce biofuels package to support infrastructure and flex fuel vehicles
Legislation to expand the availability and incentivize the use of biofuels has been introduced in the U.S. Senate.
Minnesota Democrat Amy Klobuchar and Iowa Republican Joni Ernst announced a package of bipartisan bills Wednesday called the Biofuel Infrastructure and Agricultural Product Market Expansion Act.
Klobuchar says diversifying the 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 rural economies.
The Act provides for federal investment in renewable fuel infrastructure like blender pumps and storage tanks and creates a $200 refundable tax credit for each flex fuel vehicle 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.
Klobuchar also co-introduced the Low Carbon Biofuel Credit Act alongside South Dakota Republican John Thune Wednesday. The bill would create a tax credit for each gallon of fuel containing 15 percent or greater ethanol content. It would also allow blenders or retailers to claim a 5-cent tax credit for each gallon of E15 blended or sold, and a 10-cent credit for each gallon greater than E15.
Renewable Fuels Association CEO Geoff Cooper says these bills recognize that American-made ethanol can and should play a central role in quickly reducing greenhouse gas emissions from the U.S. transportation sector.
