Monopoly-Farm Belt Congressman Demands Biofuel Investment and Tax Credits in New Bill

File Photo: Choices with gas pumps with or without ethanol gas will be seen on January 29, 2020 in Des Moines, Iowa, USA.Reuters / Brian Snyder / File Photo

June 21, 2021

Jarrett Renshaw

(Reuters) – Two billions of dollars in federal investment and tax credits to boost US biofuel demand will be part of two bills submitted by Democrats to Congress, two sources familiar with the plan. Said.

Local state legislatures have passed a bill seeking federal funding to add more high-biofuel blend pumps at retail stores and tax credits for automakers putting more “flex-fuel” cars on the road. I will introduce it in the next few weeks.

President Joe Biden was expected to provide updates on Monday as to whether the White House would accept the simplified infrastructure bill negotiated by a bipartisan parliamentary group. If that happens, sources said the biofuel bill could be caught up in a large spending bill with economic priorities that Biden was omitted from infrastructure negotiations. Democrats and the White House are hoping that spending bills will pass party policy this fall in a process called reconciliation.

Biofuel industries such as Archer Daniels Midland and the Renewable Energy Group are under pressure as governments are considering reducing biofuel obligations to help US oil refiners cope with rising regulatory costs. Have received.

Farmbelt Democrats, including Minnesota Senator Amy Klobuchar, Iowa Senator Cheri Bustos, and Iowa Senator Cindy Axne, are leading the responsibility to support biofuels, sources said. These lawmakers often rebuke the party for not paying too much attention to the local community.

Congressmen plan to raise $ 2 billion to pay for new fuel pumps and other infrastructure to provide more advanced biofuel blends such as ethanol and biodiesel. They are seeking a nickel tax credit of 5 cents per gallon at gas stations that offer so-called E15, a gasoline that contains 15% ethanol.

They are also seeking a $ 200 tax credit for automakers that make “flex-fuel” vehicles that can run on almost any mixture of gasoline or ethanol.

The slim majority of the House and Senate will bold Democrats to fight for pet projects and community demands in exchange for supporting key spending plans. Parliamentary aides and White House officials warned that these regional and special interests could inflate spending bills and complicate efforts to advance partisan voting.

Biden’s competing priorities

Farm states want the White House to help the biofuel industry, but labor groups and another group of Democratic senators have competing demands to help refiners cut costs. .. US renewable fuel standards require refiners to blend biofuels such as ethanol into fuels or purchase tradeable credits from such competitors.

The US Environmental Protection Agency is considering a nationwide general exemption that exempts US refiners from some obligations. This reduces the amount of renewable fuel refiners that will have to be blended in the future and creates a price limit for compliance credits.

Biden’s other priority is the expansion of electric vehicles. He included $ 174 billion in charging station payments in his “American Job Plan,” which was introduced in March.

Electric vehicles are the key to Biden’s willingness to bring the United States to zero carbon emissions by 2050. Environmental groups may consider investing in biofuels to be contrary to those goals.

“Investing in our electric vehicle system is necessary and good, but liquid fuels don’t go away overnight,” Bustos told Reuters. She acknowledged support for the biofuel market, but did not share details of the bill.

“In our view, biofuels have the potential to reduce our carbon emissions now, not 10 years later, not until 2050,” Bustos said.

(Report by Jarrett Renshaw; edited by Heather Timmons and David Gregorio)

Monopoly-Farm Belt Congressman Demands Biofuel Investment and Tax Credits in New Bill

Source link Monopoly-Farm Belt Congressman Demands Biofuel Investment and Tax Credits in New Bill

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