NACS, NATSO, representing America’s travel centers and truck stops, SIGMA: America’s Leading Fuel Marketers, the American Trucking Associations (ATA), SABR: representing every link in the biodiesel value chain, and the National Energy & Fuels Institute (NEFI) are commending the Biodiesel Tax Credit Extension Act of 2024, which would extend the Biodiesel Blenders’ Tax Credit for one year at the blender level.
The bill was introduced by Senators Thom Tillis (R-NC), Joni Ernst (R-IA), Deb Fischer (R-NE), Chuck Grassley (R-IA), and Pete Ricketts (R-NE).
Extending the Biodiesel Blenders’ Tax Credit would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, which is better for the environment than petroleum-diesel, the associations said.
“This legislation is key to the future of advanced renewable fuels,” said Doug Kantor, general counsel at NACS. “We applaud Senators Tillis, Fischer, Grassley, Ernst and Ricketts for recognizing the critical role that renewable diesel and biodiesel play in reducing fuel costs for consumers by supporting an extension of the Biodiesel Blenders’ Tax Credit. We urge the full Senate to extend this successful policy as soon as possible.”
Uncertainty about the tax status of biodiesel is creating risks for the future of that market, the press release stated, and an extension of the current Biodiesel Blenders’ Tax Credit is needed to address this uncertainty.
Since 2004, the biodiesel tax credit has effectively incentivized fuel retailers to invest in the necessary infrastructure to sell low-carbon alternative fuels while encouraging consumers to buy renewable fuel blends because of their lower cost.
Biodiesel historically has been the most widely consumed biofuel for use in commercial trucking and represents the best opportunity to reduce carbon emissions from the nation’s commercial trucking fleet for the foreseeable future. It is also widely used to heat homes.