Jun 2, 2021
President Biden on May 28 released his proposed budget for fiscal year (FY) 2022. The budget includes proposed support for biofuels; biorefinery, renewable chemical and biobased product manufacturing; renewable energy; and sustainable aviation fuel.
For biofuels, the budget would allocate $1 billion in support over the 2022-’26 period, including $500 million in 2022, $250 million in 2023 and $250 million in 2024.
The budget also includes $15.4 billion in support to increase biorefinery, renewable chemical and biobased product manufacturing. Those funds include $4.93 billion in support for FY 2022, $4.06 billion for FY 2023, $3.19 billion for FY 2024, $1.74 billion for FY 2025, and $580 million for FY 2026.
In addition, the budget includes $6.636 billion in tax incentives for sustainable aviation fuel (SAF) over the next decade, including $363 million in FY 2022, $503 million in FY 2023, $633 million in FY 2024, $693 million in FY 2025, $1.313 billion in FY 2026, $1.696 billion in FY 2027, $743 million in FY 2028, $376 million in FY 2029; $199 million in FY 2030, and $117 million in FY 2031.
The budget also includes provisions to extend and enhance renewable and alternative energy incentives, and to extend and modify the renewable energy production tax credit.
The Renewable Fuels Association issued a statement June 1 on Biden’s proposed budget. “We are pleased to see funding for renewable fuels like low-carbon ethanol included in the President’s budget proposal and we look forward to learning more about the intended use of this proposed funding,” said Geoff Cooper, president and CEO of the RFA. “Ethanol and other renewable fuels can immediately jumpstart our nation’s efforts to transition away from fossil fuels to a net-zero carbon future. According to scientists from the Department of Energy, Harvard University, MIT, and other institutions and agencies, today’s ethanol is already reducing greenhouse gas emissions by nearly 50 percent compared to petroleum; and innovation and continuous efficiency gains are already putting corn ethanol on the road to net-zero emissions. An investment in renewable fuel production and distribution infrastructure is an investment in a cleaner and brighter future for our nation.”
A full copy of the proposed budget can be downloaded from the White House website.
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