Senators introduce bill to reinstate biodiesel tax incentive

Feb. 17, 2014

Two senators have introduced a bill that would reinstate a biodiesel tax incentive that expired on Dec. 31, 2013. The bill, introduced by Sens. Maria Cantwell, D-WA, and Charles Grassley, R-Iowa, would offer the incentive for three years.

“On behalf of biodiesel producers across the country, we want to thank Sens. Cantwell and Grassley for their leadership on this issue,” said Anne Steckel, National Biodiesel Board (NBB) vice president of federal affairs. “The biodiesel tax incentive has expired three times over the past five years, and each time it has severely disrupted production. By comparison, we know that at least $4 billion in incentives encouraging domestic petroleum production are built into the tax code. We need that same kind of stability for younger, cleaner industries like biodiesel and renewable diesel to compete.”

According to NBB, the bill would provide a $1/gal. incentive for biodiesel, renewable diesel and renewable aviation fuel. Renewable diesel is a similar diesel alternative made with a different technology.

“This incentive clearly stimulates production and creates jobs at biodiesel plants across the country, and we urge the leadership of both parties to quickly take up this bill to ensure that we can continue the momentum that the biodiesel industry built last year with record production of almost 1.8 billion gals.,” Steckel added.

First introduced in 2005, the tax incentive has expired twice previously (in 2010 and 2012) before being re-instated both times.

Biodiesel is made from a diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, NBB said, adding that it is an EPA-designated Advanced Biofuel. The biodiesel industry supported more than 62,000 jobs last year.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

The Road Ahead: 2025 Trucking and Fleet Insights

Discover how fleet operators are impacted by challenges like driver onboarding delays and complex compliance, and the critical need for technology to boost efficiency and cut ...

Driving Growth: How to Manage More Freight

Ready to grow your trucking business? Whether you have 25 or 200 trucks, this guide offers practical tips and success stories to help you expand with confidence. Discover how ...

How to Maximize Fleet Management with Vehicle Bypass

Join us on February 18th to learn how truck weigh station bypass systems boost fleet performance and driver satisfaction.

Optimizing your fleet safety program using AI

Learn how AI supports fleet safety programs with tools for compliance monitoring, driver coaching and incident analysis to reduce risks and improve efficiency.