Now is a critical time for two American Soybean Association (ASA) biodiesel policy priorities. ASA is asking members to contact their members of Congress and urge them to support the retroactive reinstatement of the biodiesel tax credit.
The biodiesel tax credit lapsed on December 31, 2011. Retroactive extension of the biodiesel credit is a top priority for the ASA for continued development of the biodiesel industry. We urge enactment of a tax extenders package as soon as possible, including as part of the payroll tax relief package currently being negotiated by a Senate-House Conference Committee.
Also in December, Congress passed a short term extension of the payroll tax reduction. That extension expires on February 29, 2012 and a formal House-Senate Conference Committee has been convened to negotiate a longer-term extension. Senate Finance Committee Chairman Max Baucus (D-MT) and other Members have called for the Conference Committee to add the expired tax provisions, including the biodiesel tax credit, to the package.
ASA is also encouraging members to call on their congressional representatives to contact Administration officials in support of the EPA’s proposed increase in Renewable Fuel Standard (RFS2) volume requirements for biomass-based diesel for 2013. The Administration is expected to make a decision soon on the Renewable Fuel Standard (RFS2) volume increase for biodiesel for 2013. The EPA had initially proposed in June 2011 to raise the requirement from 1 billion gallons in 2012 to 1.28 billion gallons in 2013. In December, the EPA and the Office of Management & Budget (OMB) postponed making a decision on the 2013 volume requirement and indicated that they intend to make a final decision in the very near future.
In 2011, the U.S. biodiesel industry actually produced 1.1 billion gallons, 300 million gallons more than the 800 million gallon RFS2 volume requirement for 2011. The RFS2 volume requirement for 2012 is 1.0 billion gallons. Growth of the program beyond 1.0 billion gallons in 2013 is an important market opportunity for soy biodiesel. ASA and the National Biodiesel Board (NBB) strongly support the 1.28 billion gallon level for 2013.