National Biodiesel Board Shows Congress How the U.S. Biodiesel Industry Delivers
New Survey Shows Americans Continue to Strongly Support Biodiesel Incentive
Jobe at House Small Business Committee hearing |
05/03/07 - Members of Congress called on the National Biodiesel Board (NBB) today to hear about how the government’s investment in biodiesel has returned exponential benefits to America. NBB Chief Executive Officer Joe Jobe testified before the U.S. House of Representatives Committee on Small Business in a hearing entitled “The Impact of Renewable Energy Production in Rural America.” In addition, Jobe highlighted results of a new survey that confirms America’s approval of government investment in cleaner burning biodiesel.
The federal biodiesel tax credit passed in 2004. Jobe told committee members that everything the biodiesel industry said the biodiesel tax incentive would accomplish is happening. That includes new fuel refining capacity for the country, job creation, increased farm prices and economic development.
But amidst all of the positive news and investment, there is a potential threat that could undermine the economic and energy security benefits from a growing biodiesel industry, Jobe said.
The Internal Revenue Service has issued its interpretation of the Energy Policy Act’s Renewable Diesel Tax Credit provision, which has expanded the definition of “renewable diesel.” This ruling, which comes as the result of intense lobbying of the Administration by some oil companies, allows conventional petroleum refineries to take advantage of the same dollar-per-gallon tax incentive by co-processing raw vegetable oils and animal fats in the conventional refining process.
During his testimony, Jobe released the results of a survey conducted by Moore Information asking taxpayers whether oil companies should benefit from the same level of government support for renewable diesel as for biodiesel. By a margin of 3 to 1, Americans said that of the two fuels, only biodiesel should receive that level of government support. Almost 8 out of 10 Americans also said the Congress’s decision to provide a tax incentive for biodiesel was a good one.
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