Proposed stimulus legislation includes provisions for biofuels

by | May 13, 2020 | 5 Ag Stories, News

Newly proposed legislation includes provisions for biofuels.

U.S. House Speaker Nancy Pelosi on Tuesday introduced a fourth stimulus package. The Health and Economic Recovery Omnibus Emergency Solutions Act, otherwise known as the HEROES Act, includes support for biofuels producers.

American Coalition for Ethanol (ACE) Chief Executive Officer Brian Jennings is pleased to see support for biofuels. He notes biofuel producers were excluded from earlier stimulus measures.

?Congress is considering the fourth phase of stimulus legislation. Phases one, two, and three left ethanol and biodiesel producers on the cutting room floor. This legislation, introduced by the Speaker of the House, could be voted on as early as Friday,” Jennings said.

This legislation would provide ?meaningful financial aid to ethanol and biodiesel producers? for extreme losses, according to Jennings.

?We?re talking about unexpected market losses as the result of the COVID-19 pandemic. People were instructed to stay at home to slow the curve of the virus, and that led to a dramatic downfall in the use of transportation fuel, including ethanol,? Jennings said.

The HEROES Act, if passed, would authorize the U.S. Department of Agriculture to provide 45-cents per gallon of ethanol produced from January 1 through May 1, 2020. Producers forced offline for one or more calendar months during this time would qualify for the same credit, based on half the volume produced during the corresponding month or months in 2019.