American lawmakers from the farm belt will introduce three bills next week aimed at boosting public investment in biofuels as the industry tries to combat a White House push for electric vehicles, according to a report by Reuters.
The bills could get swept into broad infrastructure or spending bills. They include billions of dollars in grants and tax credits.
The biofuel industry is trying to position itself as a lower-carbon bridge to an electric car future as President Biden attempts to reach his target for net-zero carbon emissions by 2050.
One funding bill, co-introduced by Minnesota Senator Amy Klobuchar, of Minnesota and Iowa Senator Joni Ernst, would provide $1 billion in grants to pay for storage tanks and pumps with higher gasoline blends of biofuels like corn ethanol.
A second bill introduced by the two senators would provide a $200 per car tax credit for automakers who make “flex fuel” vehicles that can run on virtually any blend of gasoline or ethanol.
A third bill, sponsored by Klobuchar and South Dakota Senator John Thune, would give fuel blenders and retailers like gas stations a tax credit for each gallon of fuel containing 15% or greater ethanol content that they sell.