Sen. Grassley, 13 Others Introduce Biodiesel Tax Credit Extension Bill
In Iowa, Senator Chuck Grassley and 13 other co-sponsors, including Sen. Joni Ernst, introduced a bill that would modify the $1.00 per gallon biodiesel blenders’ tax credit to a producers’ credit and extend it for three years.
After being reinstated in late 2015, the federal biodiesel tax incentive is set to expire again on December 31, 2016.
Iowa is the nation’s leader in renewable fuels production. Iowa has 12 biodiesel facilities with the capacity to produce more than 315 million gallons annually. In addition, Iowa has 43 ethanol refineries capable of producing 4 billion gallons annually, including nearly 55 million gallons of annual cellulosic ethanol production capacity.
Iowa Renewable Fuels Association Executive Director Monte Shaw said: “We applaud Sen. Grassley for leading the charge, and his colleagues, like Sen. Joni Ernst, for working on this common sense modification and extension that will support American jobs and energy security. Just yesterday, the Energy Information Administration released its latest estimates showing that U.S. biodiesel production could actually take a step backwards this year. This is due to the latest Department of Commerce numbers showing biodiesel imports are surging, reaching a two-and-a-half-year high in May and currently making up about one-third of the U.S. biodiesel market. These soaring imports, coupled with the EPA’s lackluster Renewable Fuel Standard proposal, demonstrate the need to modify the credit to a domestic producers’ incentive and provide some longer-term certainty for the U.S. biodiesel industry.”
Category: Policy
