Bipartisan Legislation Introduced to Expand Low-Carbon Biofuels and Reduce Greenhouse Gas Emissions

Strategic Insights -

United States House of Representatives Congresswoman Cindy Axne (IA-03) introduced bipartisan, bicameral legislation to expand the use of low-carbon renewable fuels and reduce greenhouse gas emissions. The Low Carbon Biofuel Credit Act creates a new tax incentive for fuel with higher blends of ethanol, aiming to reduce pollutants in the air while supporting Iowa's rural communities. This legislation follows Congresswoman Axne's efforts to advocate for Iowa's biofuels producers and farmers.

Key Takeaways:

  • The Low Carbon Biofuel Credit Act creates a tax credit for each gallon of fuel containing 15 percent or greater ethanol content (E15), with a 5 cent tax credit for E15 and 10 cents for blends greater than E15.
  • The tax credit would be fully refundable and transferable for small retailers.
  • The legislation allows an ethanol blender or fuel retailer to claim the tax credit for each gallon of E15 blended or sold.
  • Congresswoman Axne has been a strong advocate for Iowa's biofuels producers and farmers since coming to Congress, co-chairing the House Biofuels Caucus and sponsoring legislation to extend the biodiesel tax credit and provide infrastructure grants.
  • She has also pushed for biofuels infrastructure investments to be included in discussions about a bipartisan infrastructure package.

Statistics:

  • Ethanol cuts carbon emissions by up to 61% compared to regular fossil fuels.
  • The tax credit would provide a 5 cent incentive for each gallon of E15 blended or sold and a 10 cent credit for blends greater than E15.
  • The legislation aims to reduce pollutants in the air while supporting Iowa's rural communities.
  • 61% reduction in greenhouse gas emissions from using ethanol compared to fossil fuels.

Sources:

  • United States House of Representatives Congresswoman Cindy Axne (IA-03) Congressional Press Release (June 30, 2021)
  • Background, Press Release (no date)
  • Letter to House and Senate leadership regarding biofuels infrastructure investments (June 24, 2021)
  • Renewable Fuels Infrastructure Investment and Market Expansion Act, bill information (no date)