The National Biodiesel Board (NBB) thanked the 46 Congressmembers – led by Rep. David Young (R-IA) and Rep. Dave Loebsack (D-IA) – who voiced their strong support for a multi-year extension of the biodiesel tax incentive. The Congressmembers representing states from California to Connecticut asked for a resolution in the coming weeks in a letter to House Speaker Paul Ryan (R-WI), Democratic Leader Nancy Pelosi (D-CA), Majority Leader Kevin McCarthy (R-CA) and Democratic Whip Steny Hoyer (D-MD).
The letter notes that the biodiesel tax incentive was retroactively renewed for 2017 in the Bipartisan Budget Act of 2018, passed in March this year. Unfortunately, the incentive was not extended to 2018 and is currently expired.
“Biodiesel and renewable diesel producers are putting investments on hold in the face of the uncertainty created by the off-again, on-again nature of tax incentive eligibility. A multi-year extension of the biodiesel and renewable diesel incentives will provide the industry the certainty it needs to continue to generate the economic and environmental public benefits,” the Congressmembers state in the letter.
A copy of the letter is available for download.
Kurt Kovarik, NBB’s Vice President of Federal Affairs, added, “Right now, soybean farmers are harvesting a record crop but facing extreme uncertainty about the price they’ll receive and whether they’ll have access to markets. Biodiesel adds value to every bushel of soybeans and provides a market for the growing surplus of soy oil. A multiyear extension of the biodiesel tax incentive would give farmers a welcome bit of certainty this year.
“It would further provide biodiesel producers, blenders and retailers the opportunity to plan and expand the market for biodiesel, which would benefit truck drivers, consumers and others all along the value chain. NBB appreciates the leadership of Representatives Young and Loebsack and the support of the bipartisan group of Representatives from across the country that co-signed the letter.”
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel. NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry.
