When we have talked about renewable fuels, lately, we have been focusing much of our attention on ethanol. While ethanol has been stealing the headlines, biodiesel has been having some great advancements of its own.
Greg Anderson of the National Biodiesel Board is pleased with the growth they have seen in 2018.
Anderson says this steady growth is fueling excitement for the future of the fuel. They are seeing mandates for biodiesel usage in New York City. They are seeing increased usage in city fleets. They are also excited about how biodiesel will fit into California?s clean energy plans.
A major ingredient in the growth of biodiesel has been the tax credits they have been getting. However, these credits have not always enjoyed the most stable history. Anderson says biodiesel would just like to be on the same playing field as oil and petroleum.
However, this may not be in the cards. Senator Chuck Grassley has talked about the future of the biodiesel tax credit. A provision in the tax bill released by Ways and Means Committee Chairman Kevin Brady offers an extension of the credit, followed by a scaled decline, which would phase the credit out completely by 2025.
Senator Grassley says while this should be an appealing compromise to lawmakers opposed to extending tax credits, he doesn?t believe it will have the necessary support.
Grassley is hopeful an agreement on tax extenders can be reached in the final days of the 115th Congress. Grassley says if this agreement cannot be reached, it will be a top priority for the 116th Congress, starting in January.
Grassley stated that if it comes down to getting extenders done in the next Congress, it will all depend on what House Democrats want to do.
Anderson reminds us of the benefits biodiesel is bringing to soybean producers for their product.
No matter what the outcome of this uncertain time is for biodiesel, the industry is determined to keep moving forward and generating more growth for their product.
