Biodiesel incentive bill signed in Pennsylvania

By | August 08, 2008
In July, Pennsylvania Gov. Edward G. Rendell signed into law the Biofuel Development and In-State Production Incentive Act. The legislation includes the Alternative Fuels Incentive Grant program, which provides a 75-cent-per-gallon production incentive for Pennsylvania's in-state biodiesel producers, capped at $5.3 million per year for the next three years. It also includes a requirement of 2 percent biodiesel blended into all diesel sold in Pennsylvania, increasing to 20 percent after reaching 400 MMgy of biodiesel produced in-state.
"We need to reduce our dependence on foreign oil and keep our energy dollars in Pennsylvania, to invest in our economy and create jobs," Rendell said.

Pennsylvania's biodiesel industry is at the forefront of the state's alternative energy movement. The Pennsylvania Biodiesel Producers Group (PABPG) was formed to provide financial support to the Pennsylvania biodiesel industry. The National Biodiesel Board state regulatory affairs team has supported the work of PABPG on establishing these producer incentives.

"We applaud the PABPG on their diligence in getting this legislation to the Pennsylvania General Assembly," said Shelby Neal, NBB director of state governmental affairs. "The legislation will benefit not only the PABPG member-producers and their employees, but also the farmers and other feedstock providers as well as the retail outlets that sell biodiesel and citizens who want to buy biodiesel."

Ben Wootton, chairman of the PABPG and president of Keystone BioFuels Inc., added that this legislation will allow his company and other PABPG member firms to maintain and expand their operations to meet Pennsylvania's growing biofuel needs.

Feedstocks for biodiesel, ranging from oil seeds to animal tallow, provide jobs and new markets for Pennsylvania agricultural producers and food product companies. In addition, with the cost of home heating oil and all petroleum-based fuels hitting record highs, the opportunity for Pennsylvanians to switch to biodiesel and other alternative fuels is essential to the state's future, Wootton said.
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