Statement from Joe Jobe
CEO, National Biodiesel Board
Regarding Department of Treasury’s Guidance on Renewable Diesel
 
“The National Biodiesel Board (NBB) is very concerned with guidance issued by the U.S. Department of Treasury expanding the definition of what qualifies as ‘renewable diesel.’
 
“The renewable diesel guidance issued by Treasury will allow integrated oil companies to subsidize their oil refining operations with a tax incentive that was enacted to encourage the growth of a domestic renewable fuels industry.  Treasury’s decision to expand the definition of renewable diesel will have a negative impact on the biodiesel industry’s ongoing efforts to reduce our dependence on foreign oil.  Allowing oil companies to claim a $1.00 tax credit for dumping vegetable oils and animal fats into existing oil refineries will do nothing to expand our nation’s renewable production capacity and will hinder the growth of America’s biodiesel industry.
 
“The policy goal of the biodiesel tax incentive is clear – to foster the development of a domestic biodiesel industry that expands our capacity to produce fuel from homegrown sources.  And the incentive has worked.  Since the tax incentive was enacted, 83 biodiesel plants with 700 million gallons of production capacity have come on-line.  By subsidizing existing oil refineries, Treasury’s guidance threatens to undo this progress and the efforts of the biodiesel industry to expand America’s capacity to produce renewable fuels.
 
“As Congress works on legislation to break our dependence on foreign oil, the NBB will work to preserve the long-term viability of America’s vibrant and growing renewable fuels industry.”

April 13, 2007