Tax & Clean Energy Policy

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.

 

Visit the Fueling Action Center to contact elected officials and build personal relationships with them. Send a ready-made email or personalize communications with information about your company.


Focus on Tax Incentive News


Clean Fuels Releases New Study Demonstrating Lower Consumer Costs at the Pump

May 9, 2022, 08:43 AM
Without current U.S. biodiesel and renewable diesel production, fuel prices would be 4% higher

Today, Clean Fuels Alliance America released a new study, “ The Offsetting Impact of Expanded Biomass Based Diesel Production on Diesel Prices,” prepared by World Agricultural Economic and Environmental Services (WAEES). The study shows that U.S. production of biodiesel and renewable diesel consistently reduces distillate fuel prices by increasing the supply. As the production and availability of cleaner, better fuels grew over the last decade, the price impact increased to a 4% benefit in 2020 and 2021.

“Biodiesel and renewable diesel meet more than 6 percent of the nation’s need for diesel fuel, and the industry increased production and supply even during the economic emergency of the last few years,” said Kurt Kovarik, vice president of federal affairs for Clean Fuels. “With mounting inflation and environmental concerns, as well as the need to increase energy security and reduce reliance on oil from unstable countries, it’s more important now than ever before to maintain U.S. biodiesel and renewable diesel production.”

The WAEES study notes that even small changes in the supply of diesel fuel will result in relatively larger changes in the diesel fuel price.

“Today’s study shows that U.S. biodiesel and renewable diesel production generates a 4 percent decrease in the price of diesel fuel,” Kovarik continued. “At today’s national average price for diesel fuel, the savings is equal to about 22 cents per gallon. That price benefit flows through the entire economy. Diesel fuel keeps essential items, like food and commodities, as well as other retail goods moving across the country. With the current shortage and cost of diesel fuel, a price increase associated with the reduction of biodiesel and renewable diesel production would be passed along to consumers in the costs of numerous indispensable items.”

Read the WAEES study

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and 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. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.


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