March 22, 2018
BY The National Biodiesel Board
Congress is expected to pass an omnibus spending bill March 22 to fund the U.S. government, which does not include a reinstatement of the biodiesel tax credit.
“The National Biodiesel Board is again disappointed that Congress has failed to provide pro-growth tax certainty for a domestic energy industry that has broad, bipartisan support,” said Kurt Kovarik, NBB vice president of federal affairs. “The lack of urgency by Congress to extend this expired tax credit continues to frustrate the producers, blenders and marketers of biodiesel. We will work to educate members of the economic and environmental benefits of increased use of biodiesel, so that Congress is poised to drive investments in this American energy industry.”
In February, Congress passed a retroactive extension of the biodiesel tax incentive for 2017 only. But producers continue to operate in 2018 without a tax credit, which is forcing biodiesel producers nationwide to carry the risk of the uncertainty caused by the lack of the tax credit. For some small biodiesel producers, that can be the difference between keeping the lights on and shutting down.
NBB has engaged in aggressive legislative outreach on this issue, taking meetings with elected officials each week on Capitol Hill, participating in a recent Congressional hearing on the issue and sending multiple letters to Congressional leaders making the case for renewal of the biodiesel tax incentive.
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The USDA has announced it will delay opening the first quarterly grant application window for FY 2026 REAP funding. The agency cited both an application backlog and the need to disincentivize solar projects as reasons for the delay.
CoBank’s latest quarterly research report, released July 10, highlights current uncertainty around the implementation of three biofuel policies, RFS RVOs, small refinery exemptions (SREs) and the 45Z clean fuels production tax credit.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.
The USDA’s Risk Management Agency is implementing multiple changes to the Camelina pilot insurance program for the 2026 and succeeding crop years. The changes will expand coverage options and provide greater flexibility for producers.
President Trump on July 4 signed the “One Big Beautiful Bill Act.” The legislation extends and updates the 45Z credit and revives a tax credit benefiting small biodiesel producers but repeals several other bioenergy-related tax incentives.