U.S. Reps. Mike Carey (R-Ohio-15), a member of the House Ways and Means Committee, and Mariannette Miller-Meeks (R-Iowa-01) introduced legislation yesterday to extend biofuel tax incentives including the Section 40A biodiesel blenders’ credit.
Other original cosponsors of the bill include Reps. Andrew Garbarino (R-NY), Dusty Johnson (R-SD), Mike Kelly (R-PA), Darin LaHood (R-IL) and Claudia Tenney (R-NY).
“NACS appreciates the leadership of Rep. Carey and his cosponsors in supporting renewal of the biodiesel blenders' credit, which is critical to securing a viable future for the advanced renewable fuels market,” said NACS Deputy General Counsel Matt Durand. “This legislation reflects a proven policy for bolstering domestic production and reducing consumer costs, and we urge its prompt enactment by Congress.”
Biodiesel and renewable diesel are advanced biofuels that are generally produced from feedstocks such as soybean oil, recycled cooking oil or other animal fats. The U.S. Environmental Protection Agency (EPA) defines the two fuels as renewable fuels that emit at least 50% less lifecycle greenhouse gas emissions than fossil fuel alternatives. In many cases, biodiesel and renewable diesel reduce emissions by more than 70%.
“Biodiesel is a homegrown resource that can support our long-term energy independence and support farmers, producers and energy workers right here in Ohio,” Rep. Carey said in a statement. “With America’s energy dominance at stake, we’re working to strengthen our supply of biodiesel for years to come.”
NACS and other organizations previously cautioned EPA that, without reinstatement of the Section 40A credit, which lapsed at the end of 2024, diesel prices could be impacted by high Renewable Fuel Standard volume obligations going forward.
In March, NACS, along with several other organizations, sent a letter to the House Ways and Means Committee urging Congress to extend the $1 per gallon Section 40A credit, which will help ensure that the current uncertainty in the advanced biofuel industry does not result in higher fuel prices at the pump.