Midwestern Senators Introduce Biofuels Infrastructure Legislation

From: Energy Marketers of America (EMA)

This week, Senators Amy Klobuchar (D-MN) and Joni Ernst (R-IA) introduced the “Biofuel Infrastructure and Agricultural Product Market Expansion Act of 2021” which would provide $1 billion in grant funding over ten years for state and localities to provide fuel retailers with incentives to install dispensers and UST systems compatible with ethanol blends beyond E10 and biodiesel blends greater than B20. Grants awarded under the program would cover up to 75 percent of the per pump cost and 40 percent of the cost to install each new UST system capable of dispensing higher biofuel blends. Unlike funding for dispensers, the grant money is limited to new UST systems that increase overall biofuel blend capacity at existing sites, but not for the upgrade or replacement of existing UST tanks and equipment.

Furthermore, the bill also aims to build and retrofit traditional and pipeline biodiesel terminal operations including heating oil distribution centers to market B20 plus blends. The Senators are also introducing the “Clean Fuels Vehicle Act of 2021” to provide a $200 refundable tax credit for the production of flex fuel vehicles made available to original equipment manufacturers and sunset after 10 years. Meanwhile, Senators John Thune (R-SD) cosponsored the “Low Carbon Biofuel Credit Act” with Klobuchar that would allow ethanol blenders or fuel retailers 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. The credit would be fully refundable and transferable for small retailers with less than 5 retail locations.