Stable tax policy supports continued growth of the U.S. biodiesel and renewable diesel industry, helping to create jobs and economic opportunities across the country. Biodiesel and renewable diesel are widely available low-carbon fuels that enable states and cities to meet carbon reduction goals today.

In May 2021, Sens. Chuck Grassley (R-IA) and Maria Cantwell (D-WA) and Reps. Cindy Axne (D-IA) and Mike Kelly (R-PA) introduced bipartisan, bicameral legislation to extend the biodiesel tax incentive through 2025. When the credit is in place at the start of the year -- as it was in 2020 and 2021 and will be for 2022 -- the biodiesel industry can grow with confidence. Please use this form to identify your elected officials and ask them to co-sponsor the extension and support including it in any legislation addressing climate change, economic stimulus, or infrastructure. You can send a ready-made note -- or personalize it with information about your company.

As our members and industry supporters communicate with Washington policy makers, the media, and the public, NBB provides the resources to the right and works with them to amplify these points:

  • With plants and markets across the country, the U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and pays $2.5 billion in annual wages. The industry generates more than $17 billion in economic activity each year.
  • Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity for farm workers, producers, and distributors.
  • Biodiesel is a better, cleaner fuel. It is 74 percent less carbon intensive than petroleum diesel on average, and it significantly reduces particulate and hydrocarbon emissions that are tied to asthma and cardiovascular disease.
  • Biodiesel producers use a variety of raw materials – including recycled cooking oil, animal fats and plant oils – providing value to underutilized resources.


Focus on Tax News




Biodiesel, Soybean Leaders Ask President to Improve 2020 RFS Rule

Dec 18, 2019, 1:14 PM
Twenty-four state soybean and biodiesel groups send letter to President Trump

NEWS
FOR IMMEDIATE RELEASE

 Contact: Paul Winters
 202-737-8801
pwinters@biodiesel.org

WASHINGTON, DC - Today, 24 state and national trade associations representing soybean growers and biodiesel producers delivered a letter to President Donald Trump, asking that he direct the Environmental Protection Agency (EPA) to do more in the 2020 Renewable Fuel Standard final rule to repair the harm done by small refinery exemptions.

The associations write in the letter, "EPA's small refinery exemptions dealt a severe blow to the biodiesel industry; the agency should therefore help the industry recover. The industry is capable of continued sustainable growth of several hundred million gallons every year. We ask that you direct EPA in the forthcoming final rule to expand the requirement for biomass-based diesel for 2021 and include the best estimate of exempted gallons, based on an average of actual past exemptions."

The EPA granted 85 small refinery exemptions for 2016, 2017 and 2018, exempting more than 38 billion gallons of petroleum fuel from the RFS requirements. The exemptions destroyed demand for more than 4 billion gallons of renewable fuel -- including biodiesel and renewable diesel -- which undermines demand for soybean oil and price support for soybeans. Ten biodiesel producers have closed or slashed production due to the loss of demand.

"The reality is that farm income this season is still one-third below what it was in 2013. Soybean prices and sales continue to fall due to the market disruptions," the associations write. "EPA's proposal for the 2020 RFS and estimate of small refinery exemptions is not a strong enough signal to the crop market. Increased biodiesel and renewable diesel production could help put the soybean market back on track by adding significant value – around 11% – to every bushel of soybeans."

Kurt Kovarik, NBB's VP of Federal Affairs, adds, "The EPA must ensure that the biomass-based diesel volumes set in annual rules are fully met. The agency should include in the annual standard the best estimate of future exemptions, based on an average of the 38 billion gallons exempted over the past three years. But the agency can do more to help the industry rebuild and support markets for U.S. agriculture. EPA should include increased volumes for advanced biofuels and biomass-based diesel."

A copy of the letter is available for download.

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.

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For more about biodiesel, visit www.biodiesel.org.

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