NATSO, SIGMA request congress to extend $1 per gallon biodiesel tax credit
NATSO and SIGMA, representing major U.S. fuel retailers, are pushing Congress to extend the $1-per-gallon biodiesel blenders’ tax credit, set to expire in 2024. This extension, supported by key legislators like Senator Chuck Grassley, is essential for reducing fuel costs, lowering carbon emissions in trucking, and supporting biodiesel growth. The bill H.R. 9060, which has bipartisan backing, aims to secure another year for the credit, crucial for sustaining biofuel industry momentum amid uncertainties in the Clean Fuel Production tax credit from the Inflation Reduction Act.
On November 8, NATSO, representing truck stops and travel centers, and SIGMA: America’s Leading Fuel Marketers, urged Congress to act on the growing momentum to extend several expiring tax credits during the Lame Duck session, including the $1 per gallon biodiesel blenders’ tax credit, reported Biomass Magazine.
The two associations, which together represent nearly 80% of retail fuel sales, commended Senator Chuck Grassley (R-Iowa) for his recent comments acknowledging the biodiesel tax credit as one of the key provisions in a package that “must be passed.”
NATSO and SIGMA also expressed their appreciation for Senator Grassley’s leadership and for the Members of Congress who have co-sponsored H.R. 9060, bipartisan legislation introduced by Representatives Mike Carey (R-OH), Annie Kuster (D-NH), and Claudia Tenney (R-N.Y.), which would extend the biodiesel blenders’ tax credit for another year.
“As Congress returns to finish its work, we look forward to engaging on policies that will help avoid disruptions in the fuel market, keep fuel prices down for consumers, and further reduce carbon emissions from transportation fuels,” said David Fialkov, Executive Vice President of Government Affairs for NATSO and SIGMA. “Fuel retailers are eager to work with Congress on these critical priorities during the Lame Duck session.”
The groups also raised concerns about the Clean Fuel Production tax credit, created by the Inflation Reduction Act, which was signed into law by President Biden after passing Congress along partisan lines. Despite multiple requests, the industry has yet to receive clarification on the value of this credit for various fuels. The uncertainty surrounding the credit, coupled with the imminent expiration of the biodiesel blenders’ tax credit at the end of 2024, is creating challenges for biodiesel producers, fuel retailers, trucking companies, and the broader agricultural sector.
H.R. 9060 has broad support from a diverse group of stakeholders, including the American Trucking Associations, Energy Marketers of America, Illinois Soybean Growers, Iowa Biodiesel Board, Kentucky Soybean Association, Mid Atlantic Soybean Association, Minnesota Soybean Growers Association, National Association of Convenience Stores, National Energy and Fuel Institute, Ohio Soy Association, Small Advanced Biofuel Refiners, and Truckload Carriers Association.
Biodiesel and renewable diesel continue to be the most widely used biofuels in commercial trucking and remain the most effective option for reducing carbon emissions from the nation’s trucking, home heating oil, and rail industries in the near term. The biodiesel tax credit directly lowers the cost of diesel fuel for truck drivers, which in turn reduces shipping costs and helps to lower the prices consumers pay for goods transported by truck.
Extending the biodiesel blenders’ tax credit would ensure that motor carriers can continue reducing carbon emissions from their existing fleets while keeping fuel prices and consumer costs down. The tax credit has played a key role in developing a robust renewable diesel industry in the U.S., driving significant production growth. Since 2005, the U.S. biodiesel and renewable diesel market has expanded from approximately 100 million gallons to around 4 billion gallons in 2023, all while helping to reduce transportation-related carbon emissions.
Source Link : BioenergyTimes
