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Clean Fuels Thanks Senate for Extending Tax Incentives, Infrastructure Funding

August 8, 2022

Policies will support continued growth of biodiesel, renewable diesel, and SAF.


WASHINGTON, DC – Today, Clean Fuels Alliance America welcomed Senate passage of the Inflation Reduction Act. If enacted, the legislation will extend the existing biodiesel and renewable diesel tax incentive through 2024, increase the value of the existing sustainable aviation fuel tax incentive through 2024, and create a new Clean Fuel Production Credit for 2025, 2026 and 2027. The legislation also creates a new Biofuel Infrastructure and Agriculture Product Market Expansion, with authorized funding through September 2031.

Clean Fuels’ Vice President of Federal Affairs Kurt Kovarik stated, “The clean fuels industry grew and increased production over the past several years, making an essential contribution to the nation’s fuel supply that lowers fuel prices, supports good-paying jobs, adds value for America’s farmers, and cuts carbon emissions. Long-term certainty in tax policy helped our industry meet America’s transportation needs, and we appreciate the further extension of the biodiesel and renewable diesel tax incentive. Our members are among the first to bring sustainable aviation fuel to market and we are grateful for the increased support for the industry’s growth included in this legislation.

“We applaud the new Biofuel Infrastructure and Agriculture Product Market Expansion, which will build on the success of USDA’s current infrastructure grant program. The grants will help our industry deliver cleaner, better fuels for transportation and heating directly to consumers across the country.

“As our industry looks to continue growing and sustainably meeting America’s need for affordable, clean energy, we thank Congress – particularly Senators Amy Klobuchar, Debbie Stabenow, Tammy Duckworth, Dick Durbin and Representatives Cindy Axne, Angie Craig and Cheri Bustos – for recognizing the environmental benefits of increased use of clean fuels. We also thank Senators Chuck Grassley, Maria Cantwell, John Thune, Joni Ernst, Representatives Mike Kelly, Darin LaHood and the many other cosponsors of the bipartisan standalone biodiesel tax credit and biofuels infrastructure bills who provided crucial support for these provisions.”

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. Biodiesel and renewable diesel on average reduce carbon emissions by 74% compared to petroleum diesel.

Contact: Paul Winters, [email protected], 202-737-8803

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