US House members offer bill to expand biofuel use to ease fuel prices

Source: By OPIS • Posted: Tuesday, March 22, 2022

Four U.S. House members on Monday introduced a bill that would expand the production and use of domestic biofuels to help bring down fuel costs and support economic growth in rural communities. The measure is identical to a bill introduced in the Senate earlier this month by Iowa Republican Joni Ernst and Minnesota Democrat Amy Klobuchar. Both bills would lift restrictions that prevent the summertime sale of E15 in parts of the U.S., create a 5ct/gal tax credit for E15 blenders and extend the $1/gal biomass-based diesel blenders tax credit, which is set to expire at the end of this year, through 2025. In addition, the bill would streamline pump labeling for E15 and provide $100 million in grants each year from 2022 through 2031 to help support the costs of modifying fuel distribution systems to accommodate higher ethanol blends.