Clean Fuels Welcomes New Missouri Biodiesel Tax Incentive

Oct 5, 2022 | News, News Release, Policy Priorities, State Tax


JEFFERSON CITY, MO – Today, Clean Fuels Alliance America applauded Missouri Governor Mike Parson as he signed legislation creating new incentives for biodiesel consumption and production in the state. Missouri’s new law will help drive biodiesel demand, add value to Missouri-grown soybeans, and provide Missouri citizens with a domestically made fuel that helps lower fuel prices.

“The biodiesel industry is an important partner for farmers and entrepreneurs in Missouri and across the Midwest,” Governor Parson said. “We are proud to support this industry that helps create good-paying jobs while ensuring our nation benefits from homegrown fuels that provide energy security and environmental benefits.”

HB 3, recently passed by the Missouri legislature during a special session called by Governor Parson to focus on extending agriculture incentives, provides a $0.02 per gallon retail incentive for B5 to B10 and a $0.05 per gallon retail incentive for B11+ sold at Missouri fuel retailer locations. The bill also establishes a $0.02 per gallon incentive for biodiesel produced in the state.  The Legislature provided a total of $20 million to fund the program.

The legislation was spearheaded and guided through the legislative process by the Missouri Soybean Association partnering with Clean Fuels Alliance America and several of its member companies.  HB 3 was sponsored by Rep. Brad Pollitt (R-Sedalia) and carried in the Missouri Senate by Sen. Jason Bean (Peach Orchard). More information on the legislation can be found here.

“We congratulate Missouri on this significant legislation and thank Governor Parson for helping to strengthen the biofuels corridor throughout the Midwest,” Clean Fuels CEO Donnell Rehagen said. “Missouri joins the ranks of Iowa, Illinois, Minnesota, and others with some of the most forward-thinking legislation that values the production and use of biodiesel. It is our nation’s best option here-and-now to decarbonize heavy-duty transportation.”

“Supporting biodiesel also helps lower fuel prices,” Clean Fuels Director of State Regulatory Affairs Jeff Earl said. “Recently, the World Agricultural Economic and Environmental Services released a study showing that availability of biodiesel boosts the fuel supply and consequently reduces the price of diesel at the pump by 4% on an average annual basis. This equates to more than 20 cents per gallon savings to consumers and the domestic supply chain at today’s prices.”

Missouri’s biodiesel industry adds around $266 million in value to the state’s soybean crop. Missouri is number three in the country in biodiesel production with seven biodiesel plants employing over 3,200 Missourians. In total, the Missouri biodiesel industry adds a total economic impact of over $1.7 billion to the state and supports over $191 million in Missouri household income.


Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil, and animal fats, the clean fuels industry is a proven, integral part of America’s clean energy future. Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors. Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board and state checkoff organizations.