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ACE: Climate and Biofuel Provisions in Senate-Passed Budget Reconciliation Will Expand Ethanol Use

The American Coalition for Ethanol (ACE) today highlighted several climate and ethanol-related provisions included in the budget reconciliation legislation, The Inflation Reduction Act of 2022, passed by the Senate yesterday and moving to a House vote as soon as the end of this week.

“The budget reconciliation legislation adopted by the Senate includes significant provisions recognizing the role farmers and ethanol producers can play in reducing greenhouse gas emissions,” said Brian Jennings, ACE CEO. “We are particularly happy to see a nearly $20 billion investment to support climate-smart agriculture practices through the U.S. Department of Agriculture, which we would work to leverage to help farmers and ethanol producers monetize practices, such as reduced tillage and nutrient management, which reduce ethanol’s carbon intensity.”

“Further, the Senate package injects half a billion dollars into infrastructure for higher ethanol blends like E15 and E85, and we look forward to discussing this potential and other funding becoming available to expand the availability of low carbon fuel blends at our workshop for fuel retailers ahead of the ACE annual conference this week,” Jennings added. “The legislation will also help expand ethanol use through new tax credits for clean fuel production and sustainable aviation fuel, as well as provide a boost to carbon capture and sequestration projects.”


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