Representatives of the U.S. biodiesel industry last week urged Congress at a Senate hearing to pass a seamless extension of the biodiesel tax incentive, scheduled to expire on Dec. 31.
Those who testified at the Senate hearing concluded that stable, long-term federal incentives like the $1-per-gallon biodiesel tax credit are necessary for the industry’s growth, which is experiencing a turnaround year with the reinstatement after it was allowed to expire in 2010.
In 2010, the industry saw decreased production, the closure of dozens of plants and the loss of thousands of jobs. This year, the industry has set a new production record of more than 802 million gallons — more than double 2010’s volume of about 315 million gallons — through October, according to the National Biodiesel Board (NBB).
A study conducted for the NBB stated that the increased production will support more than 31,000 jobs this year while generating $3 billion in GDP and $628 million in federal, state and local tax revenues.
According to surveys compiled by STN, biodiesel is the most commonly used “alternative fuel” by school districts, as it is a relatively inexpensive option. Biodiesel works in any diesel engine with few or no modifications — it can be added straight to regular diesel — and it helps address air quality concerns with students, staff and the public. However, transporters must keep biodiesel tanks clean and free from fungi as well as ensure it is not contaminated by water. The biodiesel industry also has passed more stringent quality standards of the fuel.
