Brown Announces New Legislation to Block American Taxpayer Money from Going to Biofuels Made with Foreign Feedstocks

WASHINGTON, D.C. - Today, 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. Brown announced the bill on a news conference call, where he was joined by Tadd Nicholson, Executive Director of the Ohio Corn and Wheat Growers Association.

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. That will make the U.S. less reliant on foreign fuel, open new markets for farmers, and increase ethanol production across the Midwest.

"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.

"Ohio's family grain farms are strongest when their markets are close to home. Producing low carbon fuels has made them profitable for years, and the future of renewable fuels can keep those family businesses flourishing for generations to come. Senator Brown's bill gives that market certainty and ensures that our national investment in renewable energy will benefit American energy producers first. That's commonsense good policy," said Tadd Nicholson, Executive Director, Ohio Corn and Wheat Growers Association.

"Thank you to Sen. Brown and Rep. Kaptur for leading the way on this issue, prioritizing Ohio farmers and reducing the U.S. biofuels industry's dependence on foreign feedstocks," said Rusty Goebel, OSA president and Williams County soybean farmer. "While the use of foreign feedstocks can play a role in producing domestically manufactured biodiesel, renewable diesel, and sustainable aviation fuel, the American taxpayer-funded 45Z tax credit should only apply to biofuels produced from domestic feedstocks by domestic fuel producers."

This bill is co-led with Senator Roger Marshall (R-KS) and co-sponsored by Senators Senator Pete Ricketts (R-NE), Amy Klobuchar (D-MN), Deb Fischer (R-NE), Tammy Baldwin (D-WI), and Tina Smith (D-MN). Representatives Tracey Mann (R-KS-01) and Marcy Kaptur (D-OH-09) introduced companion legislation in the House of Representatives.

Brown is the first Ohioan to serve on the Senate Agriculture Committee in nearly 50 years. He has long been a leader for Ohio's rural communities.

Full text of the legislation can be found HERE.

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