On Tuesday, President Biden signed the recently passed Inflation Reduction Act into law. The bill contains various amounts of money for conservation programs, biofuels and more. Below is industry reaction to the signing of the bill into law:
ACE: Climate Bill Confirms Role Farmers, Biofuel Producers Can Play in Reducing Greenhouse Gas Emissions
Sioux Falls, SD –Today, President Joe Biden signed The Inflation Reduction Act of 2022 into law. The American Coalition for Ethanol (ACE) supports important climate and ethanol-related provisions included in the legislative package. ACE CEO Brian Jennings issued the following statement on the bill passage:
“This sweeping legislation recognizes the role farmers and biofuel producers can play in reducing greenhouse gas emissions and validates the work ACE has put forth to position corn ethanol as a meaningful part of the climate solution. Record-level investments in biofuel infrastructure, climate-smart agriculture practices, carbon capture and sequestration projects, and low carbon intensity fuels available now and in the future will help grow ethanol demand long term.
“The legislation helps assure farmers and ethanol producers they can earn a return on the investments they make to innovate and help reduce greenhouse gas emissions.”
Growth Energy Thanks President Biden for Signing Key Climate Priorities into Law
WASHINGTON, D.C. – Today, Growth Energy CEO Emily Skor thanked President Biden for signing the Inflation Reduction Act into law. This initiative includes key provisions designed to expand the use of low-carbon biofuels, including infrastructure investments and tax credits for Sustainable Aviation Fuel (SAF), carbon capture, cellulosic biofuels, and bio-based diesel.
“We applaud President Biden and Congressional leaders for advancing our nation’s investment in low-carbon biofuels for a cleaner future,” said Skor. “Biofuels are critical to meeting climate goals, and this law will help maximize our industry’s contributions to a cleaner future by expanding the volume of low-carbon biofuels available across the entire transportation sector – on the ground, in the air, and at sea. This initiative will help jump-start climate progress, while delivering more savings at the pump, greater long-term energy security, and a welcome economic boon to rural communities.“
Included in the Inflation Reduction Act are several key priorities for the biofuels industry:
- 45Q tax credits for carbon oxide sequestration and utilization extended through 2032 with adjusted rates of $85/ton for sequestration and $60/ton for utilization.
- Clean Fuel Production Credit starting in 2025 and expiring at the end of 2027 for the production of low-carbon fuels.
- Five Years of Sustainable Aviation Fuel (SAF) credits: A stand-alone credit for SAF then as part of the Clean Fuel Production Credit for three years.
- $500 million for biofuels infrastructure through the end of 2031.
- Extension of Biomass-Based Diesel Blenders Credit and the Second-Generation Biofuels Producer Credit for two years.
- $300 million grant program to increase domestic production and deployment of SAF and low-emission aviation technologies
RFA Thanks President For Signing IRA into Law
With the signing of the Inflation Reduction Act today by President Biden, America will see important growth and investment in the use of low-carbon renewable fuels like ethanol, according to the Renewable Fuels Association.
“We thank President Biden for signing the budget reconciliation bill today and recognizing that low-carbon, lower-cost renewable fuels like ethanol are a critical tool for combatting climate change,” said RFA President and CEO Geoff Cooper. “This bill puts ethanol on a sustainable path for growth and investment. Several provisions within this bill are very important to the U.S. biofuels industry and will result in American families having greater access to low-carbon, more affordable, domestically made renewable fuels. We look forward to helping the administration implement the key provisions within this legislation.”
Among the provisions of the bill supported by RFA are $500 million in grants for higher-blend biofuels infrastructure; extensions of several current biofuel tax credits; creation of new tax credits for clean fuel production and sustainable aviation fuel; and enhanced support for carbon capture, utilization and storage.