Biofuels such as ethanol receive support in a new U.S. Senate bill.
Introduced by Sens. Amy Klobuchar and Al Franken of Minnesota, Kent Conrad of North Dakota and Chuck Grassley of Iowa, with four others, the bill is written to spur energy innovation.
The senators say fuels mixed with plant-based products helped reduce gasoline prices by 89 cents a gallon last year.
â€œThe United States has the ability to be the global leader in energy because of the ingenuity of our farmers and manufacturers,â€ Democrat Klobuchar said. â€œAt a time of rising gas prices, this bill would provide more efficient incentives and private investment that can help us utilize more homegrown biofuels, strengthen our homegrown energy economy in Minnesota, and secure our energy future with new infrastructure for biofuels.â€
Added Franken: â€œMinnesota has been a leader in renewable fuels since the beginning, and the ethanol tax credit has been an important part of getting us there. Now itâ€™s time to invest in ethanol infrastructure to create the market access for cellulosic ethanol and other advanced biofuels.â€
The bill would provide new tax incentives for ethanol, now mostly a corn-based fuel. Other tax biofuel tax breaks also are included.
Ethanol makes up 10 percent of the American fuel supply.