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Climate and Biofuel Provisions in Budget Reconciliation Bill Will Expand Ethanol Use

The American Coalition for Ethanol (ACE) today expressed support for the climate and ethanol-related provisions included in the budget reconciliation legislation, The Inflation Reduction Act of 2022, now passed by the Senate and House and headed to the President’s desk for signature. ACE CEO Brian Jennings issued the following statement of support:

“This far-reaching legislation Congress sent to the President’s desk will provide half a billion dollars for E15 and E85 infrastructure, invest a whopping $18 billion to support climate-smart agriculture practices which help reduce the carbon intensity of ethanol, reward fuels like ethanol with a new clean fuel production tax credit based on carbon intensity, establish a new sustainable aviation fuel tax credit based on carbon intensity, and give a big boost to projects which capture and sequester carbon.

“While this bill does not contain everything on our wish list, it does contain some incredible incentives for farmers and ethanol producers looking to capitalize on carbon intensity and we encourage the President to sign it into law, so farmers and ethanol producers can continue innovating and playing a meaningful role in helping combat climate change.”


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