Thanks Sens. Grassley, Cantwell for Pushing for Biodiesel Extension and Reform
Contact: Ben Evans/NBB
WASHINGTON – The National Biodiesel Board released the following statement from Vice President of Federal Affairs Anne Steckel after Sens. Chuck Grassley, R-Iowa, and Maria Cantwell, D-Wash., introduced new legislation with 12 additional cosponsors to extend the biodiesel tax incentive through 2019 and reform it as a domestic production credit:
“Biodiesel and renewable diesel producers around the country are yet again facing what effectively amounts to a tax increase in less than six months. Congress can keep that from happening by passing this bill. It will give producers the certainty they need to hire and grow in the coming years. It will continue our success in diversifying the diesel market and reducing our dependence on petroleum. And it will help clean the air by cutting carbon emissions and other pollution.”
“It also will appropriately reform this incentive by applying it only to domestic biodiesel production, ending a growing practice where foreign producers are taking advantage of our tax system. Our tax law should not be incentivizing foreign fuel, and this bill fixes that loophole so that we’re stimulating jobs and economic development here at home.”
“On behalf of biodiesel and renewable diesel producers across the country, we want to thank Sens. Chuck Grassley, R-Iowa, and Maria Cantwell, D-Wash., for their continued leadership on this issue as well as the additional cosponsors, Sens. Roy Blunt (R-Mo.), Joe Donnelly (D-Ind.), Joni Ernst (R-Iowa), Al Franken (D-Minn.), Martin Heinrich (D-N.M.), Heidi Heitkamp (D-N.D.), Mazie Hirono (D-Hawaii), Mark Kirk (R-Ill.), Patty Murray (D-Wash.), Pat Roberts (R-Kan.), John Thune (R-S.D.) and Sheldon Whitehouse (D-R.I.).We urge Congress to take up this bill and pass it as quickly as possible so that we can continue expanding biodiesel’s role as the leading Advanced Biofuels in America.”
The bill, which can be found here, follows similar legislation Sens. Grassley and Cantwell have introduced previously, including last year when it cleared the Senate Finance Committee without objection. It also mirrors House legislation (H.R. 5240) introduced by Reps. Kristi Noem, R-S.D. and Bill Pascrell, D-N.J.
Background: After expiring on Dec. 31, 2014, the $1-per-gallon biodiesel tax incentive was reinstated in late 2015 and is slated to expire again on Dec. 31, 2016. Under the current “blender’s” structure of the incentive, foreign biodiesel imported to the U.S. and blended with petroleum diesel in the U.S. is eligible for the tax incentive. Increasingly, foreign biodiesel producers are taking advantage of the U.S. incentive by shipping their product here. In 2015 alone, some 670 million gallons of biodiesel and renewable diesel was imported to the U.S., making up nearly a third of the U.S. market.
Made from an increasingly diverse mix of resources such as soybean oil, recycled cooking oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines. It is the first and only commercial-scale fuel produced across the U.S. to meet the EPA’s definition as an Advanced Biofuel - meaning the EPA has determined that biodiesel reduces greenhouse gas emissions by more than 50 percent when compared with petroleum diesel. Americans used nearly 2.1 billion gallons of biodiesel last year.
NBB is the U.S. trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers, and fuel distributors. A recent economic study found that the industry supports nearly 48,000 jobs nationwide.
For more details visit www.americasadvancedbiofuel.com or www.biodiesel.org.