WASHINGTON (NEXSTAR) — The biofuel industry is celebrating a major victory. Democrats’ newly signed Inflation Reduction Act invests millions to support renewable fuels, something they argue is a key part of their climate agenda.
The law invests millions to help gas stations fund the equipment necessary to sell more gasoline blended with ethanol, which is made from corn and other crops.
Chris Bliley with Growth Energy represents many of the nation’s ethanol producers. He said the plan will create jobs, lower air pollution and help keep the price of gasoline low.
“It’s really a win-win for the environment and consumers,” Bliley said. “These biofuels are American made. … Higher ethanol blends like E15 were selling (for) as much as dollar less per gallon this summer, E85 for flex fuel drivers we saw, at times, $3 less per gallon.”
Many Democrats and even some Republicans say biofuels are key to slashing carbon emissions and possibly slowing climate change.
“This really helps jumpstarts that,” Bliley said.
Rep. Cheri Bustos, D-Ill., who represents a big chunk of rural Illinois, said the new law also supports farmers that produce corn and other crops for biofuel with tax credits.
“This is monumental,” Bustos said. “We’re putting our money where our mouth is to get to sustainable agriculture programs and to make sure that we’re helping our family farmers.”
President Joe Biden said the law now puts the U.S. on track to meet his campaign promise to cut carbon emissions in half by 2030.
No Republicans supported the law. Even those supportive of the renewable fuel industry believe the spending inside the package will do more harm than good to the economy.