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Illinois proposes to phase out biodiesel sales tax exemption

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By Erin Voegele

February 18, 2021

BusinessPolicyDistributionUseNorth America

Illinois Gov. J.B. Pritzker on Feb. 17 proposed to accelerate the expiration of remaining sales tax exemptions for biodiesel as part of his FY 2022 budget proposal. The Illinois Soybean Growers Association is speaking out against the proposal.

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The U.S. Energy Information Administration released its Annual Energy Outlook 2021 (AEO2021) on Feb. 3, predicting that the consumption of biofuels as a share of the domestic fuel mix will gradually increase through 2050.

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Legislation recently introduced in Iowa that aims to establish a state biofuels standard would create more than 3,500 new jobs and generate nearly $550 million in household income by 2026, according to a study released by the IRFA on Feb. 15.

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The U.S. Energy Information Administration has released data showing U.S. biodiesel production reached 151 million gallons in November 2020, down 9 million gallons from the previous month, but up 24 million gallons from November 2019.

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Neste released fourth quarter financial results on Feb. 5, reporting that its renewable products segment proved to be very resilient despite the impacts of the COVID-19 pandemic, with increased sales volumes and strong sales margins.

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Rep. Julia Brownley, D-Calif., on Feb. 3 reintroduced the Sustainable Aviation Fuel Act, which aims to incentivize the production of sustainable aviation fuel (SAF), including the establishment of an aviation-only Low Carbon Fuel Standard.

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Iowa Gov. Kim Reynolds on Feb. 8 introduced a bill that aims to speed the statewide adoption of higher biofuel blends, including E15 and B20. Representatives of the ethanol and biodiesel industries are speaking out in support of the bill.

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The U.S. exported 472,889.3 metric tons of biodiesel and biodiesel blends of B30 or greater last year, up from 384,894 metric tons in 2019, according to data released by the USDA Foreign Agricultural Service on Feb. 5.

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Sens. John Thune, R-S.D., and Amy Klobuchar, D-Minn., on Feb. 3 reintroduced legislation that aims to require the U.S. EPA to update its outdated greenhouse gas (GHG) modeling for ethanol and biodiesel.

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A new study released Feb. 2 finds biofuels continue to have a significant positive impact on Iowa's economy, but recent market challenges reduced the job and household income impacts of ethanol and biodiesel production in the state.

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Secretary of agriculture nominee Tom Vilsack stressed the important role biofuels and bioenergy will play in meeting the Biden administration's climate goals during a Feb. 2 hearing before the Senate Committee on Agriculture, Nutrition and Forestry.

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The biodiesel and renewable diesel industry is on the “RISE�. This week the NBB hosted more than 550 biodiesel and renewable diesel producers, distributors, retailers, and other industry advocates virtually to share the direction of the industry.

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BBI International has announced that the 2021 International Fuel Ethanol Workshop & Expo, the ethanol industry's largest conference, will be held July 13-15 in Minneapolis. The event was originally scheduled to be held in mid-June.

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“Achieving zero emissions from our products is becoming a higher priority for our customers, our communities, and our company,� said Wayne Eckerle of Cummins Inc. at the the 2021 National Biodiesel Conference & Expo.

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Industry news from the Winter edition of Biodiesel Magazine, including stories on REG's wind turbine installation and leadership promotions, Neste's newest U.S. renewable diesel pumps, and BDI's technology install for Cargill in Belgium.

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Striving for greater consumer awareness, the NBB is trying to reach an audience unfamiliar with agriculture and the biodiesel and renewable diesel industry with targeted advertising in the mid-Atlantic, Washington D.C., and California regions.

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Neste and Avfuel Corp. announce a strategic partnership to create an efficient, continuous supply of sustainable aviation fuel (SAF) in the United States. Avfuel will be a branded SAF distributor for Neste.

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The U.S. exported 10,262.3 metric tons of biodiesel and biodiesel blends of greater than B30 in November, down from 15,634.4 metric tons the previous month, but up from 7,884.4 metric tons in November 2019, according to data released by the USDA.

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Neste has signed an agreement to supply sustainable aviation fuel (SAF) to DHL Express, the express service arm of Deutsche Post DHL Group. Through this agreement Neste has commenced supply of SAF with immediate effect to DHL Express at SFO.

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The USDA has announced it will open a new 30-day application period for the Higher Blends Infrastructure Incentive program on Dec. 21. The RFA, Growth Energy and ACE say they are ready and willing to help retailers apply for the program.

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Neste has opened two new fueling stations in central California, providing greater accessibility to Neste MY Renewable Diesel. The number of Neste MY Renewable Diesel fueling stations in California has more than doubled since 2019.

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Several biofuel and bioenergy groups are among nearly 70 trade organizations that sent a letter to congressional leadership last month urging the passage of tax extenders legislation before the 116th Congress adjourns sine die.

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The U.S. exported 15,634.4 metric tons of biodiesel and biodiesel blends of greater than B30 in October, down from both 59,904 metric tons in September and 22,259.3 metric tons in October 2019, according to data released by the USDA on Dec. 4.

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The Iowa Department of Agriculture and Land Stewardship on Nov. 30 announced that 101 ethanol projects and 137 biodiesel projects at 167 fuel retail locations have been awarded COVID-19 relief under the Renewable Fuels Retail Recovery Program.

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Hemisphere Ltd., the parent company of Continental Refining Co.., announced that it is exploring plans to acquire, relocate and install a soybean crushing, biodiesel refining and blending facility at a current CRC oil refinery in Kentucky.

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Rep. Julia Brownley, D-Calif., on Nov. 18 introduced the Sustainable Aviation Fuel Act, a bill that aims to incentivize the production of sustainable aviation fuel (SAF) and help the aviation sector reduce carbon emissions.

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The USDA is accepting comments on a proposed information collection request related to the Higher Blends Infrastructure Incentive Program. The agency said the collected information would identify eligible applicants seeking funds through the HBIIP.

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The National Biodiesel Board stressed that biodiesel is an adoptable, ready to go technology that can help meet the goals of the USDA's Agricultural Innovation Agenda in comments submitted to the agency on Nov. 9.

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The U.S. exported 59,904 metric tons of biodiesel and biodiesel blends of B30 and greater in September, donw from 70,628.1 metric tons in August, but up from 33,491.6 metric tons in September 2019, according to data released by the USDA on Nov. 4.

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Biomass Magazine has announced that the 14th Annual Biomass Conference & Expo will be taking place 100 percent virtual, March 15-17, 2021. The deadline to submit a presentation abstract is Nov. 13, 2020.

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