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ACE Supports Bipartisan Legislation to Provide Retailers and Automakers with Ethanol Infrastructure Incentives

U.S. Senator Amy Klobuchar (D-Minn) introduced a series of bills last week that would provide incentives for gas station owners to offer higher ethanol blends and for automakers to make flexible fuel vehicles (FFVs). Two of the bills are co-sponsored by Sen. Joni Ernst (R-Iowa), one provides funding for higher blend infrastructure and the other offers FFV incentives. A third bill is co-sponsored by Sen. John Thune (R-S.D.) and offers a tax credit for the sale of E15 and higher ethanol blends. The bills align with recommendations the American Coalition for Ethanol (ACE) provided Congress April 15 as infrastructure spending is considered. ACE CEO Brian Jennings issued the following statement of support:

“When infrastructure legislation discussions began earlier this year, ACE called on congressional leaders to provide incentives for retailers to sell E15 and E85 and for automakers to resume the production of flexible fuel vehicles to achieve immediate climate benefits from clean energy infrastructure. ACE members are pleased to see the introduction of these bipartisan bills, which include our recommendations and would help capitalize on ethanol’s ability to make near- and long-term reductions in greenhouse gas emissions.

“As Congress and the Administration explore ways to lower the carbon intensity of U.S. transportation fuels, we are encouraged by efforts like these bills that seek to level the playing field so that ethanol can compete fairly and meet the demand for low carbon fuels. No other transportation fuel source can offer the climate saving benefits ethanol provides and we encourage Congress to follow the lead of Sen. Klobuchar, Sen. Ernst, and Sen. Thune in acknowledging ethanol’s ability to rapidly decarbonize the transportation sector.”

Bill Information:

  • S.2271 – Authorizes $100 million over 10 fiscal years in United States Department of Agriculture grants to States to help retailers install equipment to sell E15 and higher ethanol blends. Under the grant program USDA would cover up to 75 percent of the cost for equipment dispensing E15 and E85. 
  • S.2267 - Provides a $200 per vehicle tax credit for the production and sale of flexible fuel vehicles and restores fuel economy credits to automakers for the production of flexible fuel vehicles.
  • S.2262 - Establishes a tax credit for the sale or blending of E15 and higher ethanol blends and makes the credit refundable for retailers with five or fewer locations.

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