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National & World Ag News Headlines |
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Farm Belt Lawmakers Push for New Biofuel Investment, Tax Credits
USAgNet - 06/23/2021
Billions of dollars in federal investments and tax credits to boost demand for U.S. biofuels will be part of two bills that Democratic lawmakers will introduce to the U.S. Congress, two sources familiar with the plans said.
According to Reuters, Congress members from rural states will introduce bills in coming weeks seeking federal funds to add more high-biofuel blend pumps at retail stations and tax credits for automakers that put more “flex-fuel” vehicles on the road.
President Joe Biden was expected to give an update on Monday (June 21) on whether the White House will accept a pared-down infrastructure bill negotiated by bipartisan group of lawmakers.
If that happens, the sources said, the biofuels bills could be rolled into a massive spending bill with economic priorities Biden omitted from the infrastructure talks.
Democrats and the White House hope the spending bill will pass along party lines this fall in a process called reconciliation.
The biofuels industry, including Archer Daniels Midland and Renewable Energy Group, among others, is under pressure as the administration mulls cutting biofuel mandates to help U.S. oil refiners deal with rising regulatory costs.
Farm Belt Democrats, including Sen. Amy Klobuchar of Minnesota and Reps. Cheri Bustos of Illinois and Cindy Axne of Iowa, are leading the charge to support biofuels, sources said.
These lawmakers often chide their party for paying too little attention to rural communities, Reuters reports.
The lawmakers plan to seek $2 billion in funding to pay for new fuel pumps and other infrastructure for providing higher biofuel blends like ethanol and biodiesel.
They are seeking a 5-cent-per-gallon tax credit for gas stations offering so-called E15, which is gasoline that contains 15% ethanol.
They also are seeking a $200 per car tax credit for automakers that make “flex fuel” vehicles that can run on virtually any blend of gasoline or ethanol.
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