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Obama Misses Chance to Help Biodiesel

As President Obama unveiled his FY 2015 Budget Proposal, the Iowa Renewable Fuels Association (IRFA) says he missed his chance to level the playing field for biodiesel. IRFA Policy Director Grant Menke points out that while the President included the reinstatements of several currently expired tax provisions, such as tax credits for cellulosic biofuel and wind energy production, he seemed to forget about the federal $1-a-gallon biodiesel tax credit, which expired at the end of 2013.

“While we are pleased the President seeks to reinstate the cellulosic biofuel tax credit and several other important tax incentives, we are disappointed he did not include the biodiesel tax credit among these extensions. As America’s leading advanced biofuel, biodiesel has made great strides in production, distribution, and use. However, faced with the enduring effects of the petroleum industry’s continuous Century of Subsidies, reinstating the biodiesel tax incentive is a vital part of leveling the energy playing field and allowing true consumer fuel choice.”

IRFA points out that the Hawkeye State is a leader in renewable fuels production, with 42 ethanol refineries capable of producing over 3.8 billion gallons annually, three cellulosic ethanol facilities currently under construction, and a dozen biodiesel facilities able to produce nearly 315 million gallons each year.

 

Source: Domestic fuel