BioFuels Journal

Washington, D.C.—Congressman Earl Pomeroy introduced legislation to provide long-term stability to the biodiesel market, which offers a homegrown, clean burning alternative to traditional diesel fuel.

Pomeroy’s bill, H.R. 4070, will extend the $1 per gallon biodiesel tax credit for five years and update the credit to streamline the processing of it.

“Homegrown alternative fuels such as biodiesel provide a new market for North Dakota farmers and help reduce our dependence on foreign oil, making them good for our economy and our energy security,” Congressman Pomeroy said.

“By providing a five year extension of the tax credit that makes biodiesel a viable alternative to traditional diesel, we will provide the opportunity for this homegrown fuel to grow and expand its foothold in the marketplace.”

The biodiesel tax credit was created by Pomeroy and enacted into law in 2004 and is set to expire on December 31, 2009.

A multi-year extension will provide the certainty and stability needed to allow producers and investors to make long-term planning decisions about biodiesel production.

Without this credit, biodiesel is at a significant competitive disadvantage with petroleum diesel.

It is likely that production and consumption of biodiesel will decrease dramatically, or possibly cease altogether, without an extension of this important credit.

Biodiesel has the potential to play a much greater role in reducing our reliance on foreign oil.

In 2008, 690 million gallons of biodiesel were produced in the U.S., including more than 60 millions gallons in North Dakota, and displaced 38.1 million barrels of petroleum.

With a long-term extension of the biodiesel tax credit, the production and use of biodiesel will only increase, further displacing the use of foreign oil.

For more information, call 202-225-2611.

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