The National Association of Truck Stop Operators (NATSO), the Society of Independent Gasoline Marketers of America (SIGMA) and the National Association of Convenience Stores (NACS) commended a bipartisan group of lawmakers for introducing the Biodiesel Tax Credit Extension Act of 2024, which would extend the biodiesel blender's tax credit.
Biodiesel is a liquid fuel used to power compression-ignition engines manufactured from vegetable oils, animal fats and recycled restaurant grease. It can be used in any equipment that operates on diesel fuel.
Using biodiesel reduces lifecycle emissions because carbon dioxide released from biodiesel combustion is offset by the carbon dioxide absorbed from growing soybeans or other feedstocks used to produce the fuel. It is less combustible than petroleum fuel.
Since 2004, the biodiesel tax credit has effectively spurred fuel retailers to invest in the necessary infrastructure to sell low-carbon alternative fuels while encouraging consumers to buy renewable fuel blends due to their lower cost. The biodiesel tax credit helps create jobs, reduce the transportation sector's greenhouse gas emissions and enables fuel retailers to offer more competitively priced diesel fuel.
Extending the biodiesel blender's tax credit for one year would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, which is far better for the environment than petroleum-diesel, according to the organizations.
The legislation is sponsored by Reps. Mike Carey (R-Ohio), Claudia Tenney (R-New York), Ann Kuster (D-New Hampshire) and Mariannette Miller-Meeks (R-Iowa).
“Renewable diesel and biodiesel represent a vital component of any sound strategy for lowering transportation sector emissions,” said David Fialkov, executive vice president of government affairs for NATSO and SIGMA. “Trucks are harder and more expensive to electrify than cars, and while we pursue aspirational goals, we still must capitalize on economically viable solutions that help us lower emissions today. We commend Reps. Carey, Kuster, Tenney and Miller-Meeks for recognizing the critical role that renewable diesel and biodiesel play in lower fuel costs for consumers by supporting an extension of the Biodiesel Blender Tax Credit. We urge Congress to extend this successful policy as soon as possible.”
Stakeholders support this policy because it lowers the price consumers pay to fuel their vehicles and heat their homes.
The biodiesel tax credit lowers the price that truck drivers pay for diesel fuel, which in turn lowers the cost of shipping and therefore the price consumers pay for products that are moved by truck. Extending the biodiesel tax credit will safeguard the ability of motor carriers to reduce carbon emissions in the nation's existing commercial fleets while lowering fuel prices and the cost of goods for consumers.
“This legislation is key to supporting our industry's continued investment in advanced renewable fuels,” said Paige Anderson, director of government relations at NACS. “We applaud Congressman Carey for demonstrating leadership on this issue and encourage all members of Congress to support this bill, which will extend fuel supply and incentivize fuel retailers to invest in low-carbon alternative fuels at a cost that is attractive to consumers.”
The biodiesel blender's tax credit has worked successfully to build a robust renewable diesel industry in the United States while decreasing carbon emissions associated with transportation fuel. The U.S. biodiesel and renewable diesel market has grown to approximately 4 billion gallons in 2023 from roughly 100 million gallons in 2005.
Biodiesel and renewable diesel eliminated 15 million metric tons of carbon dioxide in California alone in 2020, the equivalent of taking more than 3 million passenger cars off the roads, according to NATSO, SIGMA and NACS. Compared with petroleum-based diesel, renewable diesel and biodiesel reduce greenhouse gas emissions by up to 80%.
The California Air Resources Board (CARB) recently underscored its role in reducing carbon emissions, announcing that renewable diesel and biodiesel constitute more than half of the diesel supply in California.
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