The biodiesel tax incentive continues to support growth of the U.S. market for biodiesel, renewable diesel and sustainable aviation fuel. In 2020, the United States used 3 billion gallons of better, cleaner fuel from production plants across the country. Producers rely on certainty in this policy to finance construction of additional capacity and build feedstock supply chains.

In May 2021, Sens. Chuck Grassley (R-IA) and Maria Cantwell (D-WA) and Reps. Cindy Axne (D-IA) and Mike Kelly (R-PA) introduced bipartisan legislation to extend the biodiesel tax credit through 2025. When the tax credit is in place at the start of the calendar year, the industry can grow confidently and sustainably. The credit is currently set to expire at the end of 2022. Clean Fuels will continue to communicate to Congress the effectiveness of the tax incentive and the industry's need for certainty.

As our members communicate with Members of Congress, the media, and the public, Clean Fuels works with them to amplify these points:

• Biodiesel is a better, cleaner fuel. It is 74 percent less carbon intensive than petroleum diesel on average, and it significantly reduces particulate and hydrocarbon emissions that are tied to asthma and cardiovascular disease.
• With plants and markets across the country, the U.S. biodiesel and renewable diesel industry supports more than 60,000 U.S. jobs, paying $2.54 billion in annual wages. The industry generates more than $17 billion in economic activity each year.
• Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity for farm workers, producers, and distributors.
• Biodiesel producers use the broadest mix of raw materials – including recycled cooking oil, animal fats and plant oils – providing value to underutilized resources.

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