BioFuels Journal

Now is a critical time for two ASA biodiesel policy priorities.

We ask that you contact your Members of Congress (House Member and Senators) to:

1) urge their support for the retroactive reinstatement of the biodiesel tax credit; and

2) urge them to contact Administration officials (listed below) in support of the EPA’s proposed increase in Renewable Fuel Standard (RFS2) volume requirements for biomass-based diesel for 2013.

1. Biodiesel Tax Credit Retroactive Reinstatement

The biodiesel tax credit lapsed on December 31, 2011.

Retroactive extension of the biodiesel credit is a top priority for the American Soybean Association for continued development of the biodiesel industry.

We urge enactment of a tax extenders package as soon as possible, including as part of the payroll tax relief package currently being negotiated by a Senate-House Conference Committee.

As you know, in December Congress passed a short term extension of the payroll tax reduction.

That extension expires on February 29, 2012 and a formal House-Senate Conference Committee has been convened to negotiate a longer-term extension.

Senate Finance Committee Chairman Max Baucus (D-MT) and other Members have called for the Conference Committee to add the expired tax provisions, including the biodiesel tax credit, to the package.

Request: Contact your House Member to express the importance of this issue to soybean farmers, and urge your Representative to contact the Chairman and Ranking Member of the House Ways & Means Committee, along with House leadership, in support of inclusion of the biodiesel tax credit in the package being negotiated on the payroll tax cut extension.

Similarly, contact your Senators to urge your Senators to contact the Chairman and Ranking Member of the Senate Finance Committee, along with Senate leadership, in support of inclusion of the biodiesel tax credit in the package.

If you don’t have the telephone numbers of your Senators or Representative, you can call the Capitol Switchboard at 202-224-3121 and ask to be connected to their office.

2. 1.28 billion gallon biomass-based diesel volume requirement for 2013

The Administration is expected to make a decision soon on the Renewable Fuel Standard (RFS2) volume increase for biodiesel for 2013.

The EPA had initially proposed in June 2011 to raise the requirement from 1 billion gallons in 2012 to 1.28 billion gallons in 2013.

In December, the EPA and the Office of Management & Budget (OMB) postponed making a decision on the 2013 volume requirement and indicated that they intend to make a final decision in the very near future.

In 2011, the U.S. biodiesel industry actually produced 1.1 billion gallons, 300 million gallons more than the 800 million gallon RFS2 volume requirement for 2011.

The RFS2 volume requirement for 2012 is 1.0 billion gallons.

Growth of the program beyond 1.0 billion gallons in 2013 is an important market opportunity for soy biodiesel.

ASA and the National Biodiesel Board (NBB) strongly support the 1.28 billion gallon level for 2013.

Biodiesel is the only Advanced Biofuel in the U.S. today that is produced on a commercial-scale across the country.

It is creating jobs, reducing greenhouse gas emissions and bolstering energy security, and the industry demonstrated in 2011 that it can reach the production targets.

The Biomass-based Diesel (biodiesel) program is a section of the RFS2 that is working precisely as intended.

The record production of roughly 1.1 billion gallons in 2011 supported over 50,000 jobs across the country while displacing imported diesel with a clean, American-made fuel.

Increasing the volumes to 1.28 billion gallons would support approximately 74,000 jobs. It also served as an important source of use for U.S. soybean oil made from U.S. soybeans.

Request: Contact your Senators and House Member to express the importance of the RFS2 to soybean farmers, jobs, energy security, and the environment. Urge them to contact the following Administration officials in support of the 1.28 billion gallon level.

ADMINISTRATION OFFICIALS TO CONTACT:

(Please contact by telephone and electronic mail):

Office of Management and Budget

Office of Information and Regulatory Affairs Cass R. Sunstein Eisenhower Executive Office Building 1650 Pennsylvania Avenue NW Room 262 Washington DC 20503 Tel: 202-395-4790 Email: cass_sunstein@omb.eop.gov

Office of the White House

Office of Energy and Climate Policy Heather R. Zichal Deputy Assistant to the President for Energy 1600 Pennsylvania Avenue NW 1st Floor, West Wing Washington DC 20500 Email: hzichal@who.eop.gov

Environmental Protection Agency

Assistant Administrator for Air and Radiation Regina A. McCarthy Ariel Rios Federal Building 1200 Pennsylvania Avenue NW Room 5406, Mail Code 6101 A Washington DC 20460 Tel: 202-564-7404 Email: mccarthy.gina@epa.gov

US Department of Agriculture

Office of the Secretary Thomas Vilsack Jamie L. Whitten Building 1400 Independence Ave. SW Room 200-A Washington DC 20250 Tel: 202-720-3631 Email: agsec@usda.gov If you have any questions or would like to discuss further, please contact Tom Hance in the ASA Washington office at thance@gordley.com or at 202-969-7040.

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