Senator Marshall, Representative Mann Lead Bipartisan Legislation Fighting for Farmers with Biofuel Tax Credit

US Senator Introduces Farmer First Fuel Incentives Act to Promote Renewable Fuels

Published Date: 09-24-2024

Written By: Press Release Posted by David Elliott

US Senator Dr. Roger Marshall has introduced the bicameral and bipartisan Farmer First Fuel Incentives Act, which aims to promote renewable fuels and align with the Sustainable Development Goals (SDGs). The act requires the Treasury Department to restrict the eligibility of the 45Z Tax Credit to renewable fuels made only from domestically sourced feedstocks. It also extends the tax credit to make it a full 10-year credit.

The bill is co-led with Senator Sherrod Brown of Ohio, with companion legislation introduced by Representatives Tracey Mann of Kansas and Marcy Kaptur of Ohio in the House of Representatives. Several other senators and representatives have also cosponsored the legislation, demonstrating broad support.

The 10-year credit provided by the act will give the ethanol industry the necessary time and financial incentive to build up the infrastructure required for the United States to be less reliant on foreign fuel. This will open new markets for farmers and increase ethanol production across the Midwest, contributing to the achievement of SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure).

However, stakeholders have identified a flaw in the 45Z Tax Credit that needs to be addressed. If the credit goes into effect as is, it would result in taxpayers subsidizing Chinese used cooking oil and significantly reducing the use of homegrown soy or corn oil in renewable diesel. This issue undermines the goal of supporting American farmers and promoting domestic feedstocks.

Senator Marshall emphasized the importance of not lowering commodity prices further and ensuring that tax policies prioritize American farmers. He stated, “While we support free trade and open markets, we do not believe foreign feedstocks should be incentivized through the hard-earned dollars of US taxpayers to the detriment of American farmers.” The Farmer First Fuel Incentives Act aims to rectify this situation and provide businesses with a decade of certainty, aligning with SDG 8 (Decent Work and Economic Growth).

Congressman Mann echoed this sentiment, emphasizing that American tax incentives should not primarily benefit foreign producers. He stated, “Our legislation puts American farmers first by ensuring that American tax credits are incentivizing American-grown products.” This approach aligns with SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action).

The Farmer First Fuel Incentives Act has garnered support from various agricultural associations, including the Kansas Soybean Association and the Kansas Corn Growers Association. These organizations recognize the importance of maintaining access to clean fuel markets and ensuring that tax credits do not benefit foreign producers at the expense of American farmers.

Prior to introducing the legislation, Senator Marshall led a bipartisan letter urging the US Treasury Department to restrict the eligibility of the 45Z Tax Credit to domestically sourced feedstocks. Similar letters were also sent by prominent agricultural organizations to Treasury Secretary Janet Yellen and US Office of Management and Budget Director Shalanda Young, highlighting the need to prioritize domestic feedstocks in renewable fuel production.

The Farmer First Fuel Incentives Act represents a significant step towards achieving the SDGs by promoting renewable fuels, supporting American farmers, and ensuring sustainable and responsible production practices. By aligning with SDG 2 (Zero Hunger), SDG 7, SDG 8, SDG 9, SDG 12, and SDG 13, this legislation contributes to a more sustainable and resilient future for the United States.

(Information courtesy Senator Marshall’s Office.)

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

The issues highlighted in the article are connected to these SDGs because they involve renewable fuels, economic incentives, infrastructure development, responsible consumption, and climate change measures.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 7.2: Increase substantially the share of renewable energy in the global energy mix
• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation
• Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
• Target 12.2: Achieve sustainable management and efficient use of natural resources
• Target 13.2: Integrate climate change measures into national policies, strategies, and planning

The article discusses the need to restrict tax credits to renewable fuels made from domestically sourced feedstocks, which aligns with the targets mentioned above.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

No specific indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets.

Source: krsl.com