Ethanol Infrastructure Efforts Keep Expanding

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October 7, 2021

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by Robert White (Renewable Fuels Association/Ethanol Producer Magazine) Significantly increasing the use of low-carbon renewable fuels like ethanol follows along different tracks. Legislatively, for example, there’s the bipartisan Clean Fuels Vehicle Act of 2021, which would provide incentives for automakers to build more flex-fuel vehicles that can run on higher blends like E85. At the same time, there are efforts to build out infrastructure at retail fuel stations so that blends higher than E10 can be sold.

There’s good news on this front, with the U.S. Department of Agriculture in August announcing it is investing another $26 million to build infrastructure to expand the availability of E15 and other higher blends of renewable fuels.

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There’s also the Alternative Fuel Infrastructure Tax Credit offered via the IRS, where you may be able to receive a tax credit of 30% of the cost, not to exceed $30,000, for installing infrastructure for E85 and other alternative fuels.

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Now nationally, biofuel infrastructure remains a part of the Build Back Better Act under consideration in Congress, thanks to Rep. Cindy Axne (D-IA) and other biofuels champions in Congress, who secured $1 billion in matching funding, to be spread over eight years. Other federal legislation offers similar programs, such as the Biofuel Infrastructure and Agricultural Product Market Expansion Act of 2021 in the Senate, which offers $1 billion over 10 years, and the Renewable Fuel Infrastructure Investment and Market Expansion Act of 2021 in both houses, which provides $500 million over five years.

At the same time, some states are moving forward with infrastructure programs of their own.

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These are just a few examples. Bottom line: Retailers need to keep aware of the many infrastructure programs offered or being considered at both the state and national level. READ MORE

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