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Senate Energy Bill Seeks to Increase Flex-Fuel Vehicles, Extend Biofuel Tax Credits

April 07, 2009

WASHINGTON, D.C. --- North Dakota Sen. Byron Dorgan (D) has introduced an energy bill that includes provisions to increase production of flexible-fuel vehicles and to extend ethanol and biodiesel tax credits. 

The bill (S.774) would require that beginning with model year 2012, at least 50 percent of the vehicles sold in the U.S. would be flexible fuel. That would increase by 10 percent per model year until the 2017 model year, when 100 percent of the vehicles sold would be flexible fuel. Vehicles running on diesel, natural gas, hydrogen or electricity would be excluded. 

According to the Oil Price Information Service, the bill also provides for: 

  • A one-year extension to the 45ct/gal ethanol blenders' tax credit -- currently set to expire at the end of 2010
  • A two-year extension to the $1/gal biodiesel tax credit -- currently set to expire at the end of this year
  • An extension through Jan. 1, 2019 of the alternative fuel vehicle refueling property tax credit -- currently set to expire Jan. 1, 2011
  • Several studies, including one on the quantity of renewable biomass energy that can be deployed in the U.S. by 2030. 

The bill, co-sponsored by Ohio Sen. George Voinovich (R) was referred to the Senate Finance Committee.

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