WASHINGTON, D.C. –Today, U.S. Reps. Mike Carey (R-Ohio-15), a member of the House Ways and Means Committee, and Mariannette Miller-Meeks, M.D. (R-Iowa-01) introduced bipartisan legislation to extend tax incentives that strengthen the biofuels sector.
“Biodiesel is a homegrown resource that can support our long-term energy independence and support farmers, producers, and energy workers right here in Ohio,” Rep. Carey said. “With America’s energy dominance at stake, we’re working to strengthen our supply of biodiesel for years to come.”
“Iowa’s biofuels production fuels America and powers our economy,” Rep. Miller-Meeks said. “Iowa producers need market certainty to continue producing affordable, low-emissions forms of energy. I am thankful for Rep. Carey’s collaboration on this commonsense bill which will lower energy costs and emissions, and promote the production of biofuels to further President Trump’s America First agenda for energy dominance. I look forward to getting this bill to his desk.”
“To continue our progress to sharply lower emissions, the trucking industry needs more affordable, technology-neutral solutions in the immediate term, including alternative fuels like biodiesel and renewable diesel,” Henry Hanscom, American Trucking Associations Senior Vice President of Legislative Affairs, said. “ATA is grateful to Reps. Carey, Garbarino, Johnson, Kelly, LaHood, Miller-Meeks, and Tenney for their leadership on this critical issue. Reinstating the historically successful Biodiesel Tax Credit will ensure that trucking has access to low-carbon, proven energy sources and allow trucking fleets of all sizes to further reduce the environmental impacts of their current fleets. We look forward to working with Congress to send this bill to the President’s desk.”
BACKGROUND:
Biodiesel and renewable diesel are advanced biofuels that are generally produced from feedstocks such as soybean oil, recycled cooking oil, or other animal fats. The U.S. Environmental Protection Agency (EPA) defines the two fuels as renewable fuels that emit at least 50 percent less lifecycle greenhouse gas emissions than fossil fuel alternatives. In many cases, biodiesel and renewable diesel reduce emissions by more than 70 percent.
The biodiesel tax credit refers to a group of incentives included in Section 40A(g) of the Internal Revenue Code of 1986.
The Second-Generation Biofuel Producer Tax Credit provides a tax credit of up to $1.01 per gallon of qualifying advanced biofuels, such as cellulosic ethanol made from corn kernel fiber. This tax credit incentivizes investment in innovative fuel production technologies and has resulted in critical advancements in the production of domestically produced second generation biofuels.
In Ohio alone, biodiesel production supports over 1,500 jobs and contributes more than $806 million in economic activity. There are two biodiesel refineries in operation statewide, both of which use Ohio-grown soybeans in their production process.
The bill has earned support from the American Trucking Associations (ATA), Clean Freight Coalition, Energy Marketers of America (EMA), Illinois Soy Association, National Association of Convenience Stores (NACS), National Energy & Fuels Institute (NEFI), NATSO, Representing America’s Travel Centers and Truck Stops, Renewable Fuels Association (RFA), Sustainable Advanced Biofuels Refiners (SABR), SIGMA: America’s Leading Fuel Marketers, National Tank Truck Carriers, and Truckload Carriers Association (TCA).
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