US senator announces new legislation to block American taxpayer money from going to biofuels made with foreign feedstocks

In Washington D.C., U.S. Senator Sherrod Brown (D-OH) announced the introduction of his new bipartisan legislation to block taxpayer money from being used to subsidize biofuels produced using imported foreign feedstocks such as Chinese used cooking oil and Brazilian ethanol. 

The bill would also extend the 45Z Clean Fuel Production Credit. The 45Z Clean Fuel Production Credit, which was passed as part of the Inflation Reduction Act, was intended to make America more energy independent and spur the production of biofuels made with American-produced feedstocks – building new markets for American farmers. But farmers are dealing with a surge in imports of Chinese used cooking oil being used to produce biofuels in the U.S. – and that is displacing the use of American feedstocks. In July, Brown called on Treasury Secretary Janet Yellen and the Biden Administration to restrict the eligibility of the 45Z Credit to renewable biofuels fuels made from feedstocks sourced domestically. Brown’s bill would ensure eligibility for the tax credit is restricted to biofuels that are produced with domestic feedstocks.

Brown’s legislation would also extend the credit for 10 years, giving the American ethanol industry the time and financial incentive to build up the infrastructure needed to produce sustainable aviation fuel. 

“American tax dollars should support American farmers – not imported feedstocks. To continue to grow the biofuels industry and open new markets for Ohio farmers, we must stop taxpayer money from subsidizing a surge in Chinese cooking oil or any other foreign feedstock from infiltrating the American market. Our bipartisan bill ensures these investments benefit Ohio farmers and Ohio energy producers,” said Brown.

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