BioFuels Journal

Ames, IA—Renewable Energy Group (REG) applauds March 10 the U.S. Senate's passage of a bill containing the reinstatement of the biodiesel blenders' tax credit, a critical piece of energy independence and green collar economy policy.

The U.S. Senate approved the American Workers, State and Business Relief Act including H.R. 4213, the Extenders Package which contains the much-anticipated extension of the $1/gal biodiesel tax credit.

The bill calls for the tax credit to be retroactive (effective Jan. 1, 2010 to Dec. 31, 2010).

"Senate passage of the bill with the inclusion of the biodiesel tax credit confirms the availability of the tax incentive for the biodiesel industry in 2010," said Gary Haer, Renewable Energy Group's Vice President of Sales and Marketing.

"However, it is important for our partners in the petroleum industry to note that U.S. Senate approval of this legislation does not mark the end of the legislative process for this tax credit."

The differences between the respective House and Senate versions will need to be reconciled, and both chambers will have to approve an identical bill before it can be presented to President Obama for his signature.

Timing for presidential signature and tax credit reinstatement is uncertain.

"We urge our Congressmen to move quickly to include the biodiesel tax credit in the first moving piece of legislation possible and get it to the President's desk," Haer said.

"Since the Jan. 1 lapse of the tax credit, our industry has seen significant reductions in biodiesel demand leading to manufacturing slow down and widespread job loss, including staff at REG network plants in Iowa."

According to the National Biodiesel Board, further delay addressing the tax credit is certain to make the job loss situation worse and imperil the 23,000 green jobs the industry currently supports.

"Until the reinstatement and retroactivity of the tax credit are in place, the industry will remain at best, in a stalemate and at worst in a state of continued disruption," added Haer.

"The incentive is structured so that the value of the incentive is reflected in the market price of the fuel," explained Haer.

"Biodiesel producers and in turn, our customers, are all anxiously awaiting the restoration of the biodiesel tax credit."

Upon reinstatement of the blender's tax credit, REG will continue to partner with NBB and industry partners to promote the Biodiesel Tax Incentive Reform and Extension Act as proposed by U.S. Senator Maria Cantwell (D-WA) and U.S. Senator Charles Grassley (R-IA) which is expected to provide stability and reliability to the biodiesel industry by creating an industry tax incentive for five years.

For more information, call 515-239-8118.

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