ALEXANDRIA, Va. — NATSO, representing truck stops and travel centers, and SIGMA: America’s Leading Fuel Marketers are urging Congress to harness growing momentum for the extension of a series of expiring tax credits during the Lame Duck session, including the $1 per gallon biodiesel blenders’ tax credit.
The associations, which represent nearly 80 percent of fuel sold at retail, applauded Senator Chuck Grassley for his recent public comments stating the biodiesel tax is among 20 included in a tax package that “must be passed.”
According to a media release, NATSO and SIGMA noted that the organizations appreciate Senator Grassley’s leadership on this issue as well as all the Members of Congress who have co-sponsored H.R. 9060, bipartisan legislation introduced by Representatives Mike Carey, Annie Kuster and Claudia Tenney that would extend the biodiesel blenders’ tax credit for one year.
“As Members return to finish their work, we look forward to engaging on policy priorities that can prevent unnecessary disruptions in the fuel market while keeping fuel prices low for consumers and further reducing carbon emissions from transportation fuel,” said David Fialkov, NATSO and SIGMA executive vice president of Government Affairs. “Fuel retailers are ready and willing to work with Congress as it considers critical policy priorities during the Lame Duck Session.”
The Inflation Reduction Act, which was signed into law by President Biden after passing Congress on a purely partisan basis, created a new Clean Fuel Production tax credit known as “45Z.” Despite repeated requests, the industry has not received guidance from the Biden Administration regarding what the value of that credit will be for different fuels. This uncertainty, combined with the scheduled expiration of the biodiesel blenders’ credit at the end of 2024 is hurting biodiesel producers, fuel retailers, trucking companies, and the entire soy complex.
A diverse group of stakeholders support H.R. 9060, including the American Trucking Associations, Energy Marketers of America, Illinois Soybean Growers, Iowa Biodiesel Board, Kentucky Soybean Association, Mid Atlantic Soybean Association, Minnesota Soybean Growers Association, National Association of Convenience Stores, National Energy and Fuel Institute, Ohio Soy Association, Small Advanced Biofuel Refiners, and Truckload Carriers Association.
According to the release, biodiesel and renewable diesel have historically been the most widely used biofuels in commercial trucking and remain the most viable option for reducing carbon emissions from the nation’s trucking, home heating oil, and rail industries in the near term. The biodiesel tax credit directly lowers the cost of diesel fuel for truck drivers, which in turn reduces shipping costs and helps lower the prices consumers pay for goods transported by truck.
“Extending this tax credit would ensure that motor carriers can continue to cut carbon emissions within existing fleets while also keeping fuel prices and consumer costs down,” the release said. “The biodiesel blenders’ tax credit has been instrumental in developing a strong renewable diesel industry in the United States, driving significant growth in production. The U.S. biodiesel and renewable diesel market expanded from approximately 100 million gallons in 2005 to around 4 billion gallons in 2023, all while contributing to lower transportation-related carbon emissions.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
