By Jamie Martin
A coalition of fuel and agriculture organizations has praised the introduction of new legislation designed to provide temporary relief to the biodiesel industry. The Consumer Relief and Opportunities for Producers Act would reinstate the Biodiesel Blenders’ Tax Credit at one dollar per gallon for a limited period.
"We commend Senator Blackburn for her commitment to strengthening America's energy markets through a reinstatement of the Biodiesel Blenders' Tax Credit," said NATSO President and CEO Max McBrayer. "Renewing the Biodiesel Blenders' Tax Credit would help bring down the price of diesel in many markets throughout the United States, which would help American consumers navigate the affordability challenges that many of them are currently experiencing.
The proposal would restore the credit for six months, ending in late May 2026. Fuel blenders would be able to choose between claiming the biodiesel tax credit or the Clean Fuel Production Credit. Supporters say this option would help fuel markets function more smoothly during a time of regulatory uncertainty.
"We appreciate Senator Blackburn for her leadership in restoring the longstanding Section '40A' Biodiesel Blenders' Tax Credit, which has a proven track record of increasing biofuel production and lowering fuel prices at the pump," said Matt Durand, Deputy General Counsel for NACS. "'40A' worked because it was straightforward and transparent. Fuel retailers have been flying blind without it, and the market is in distress amid such largescale uncertainty."
Industry representatives argue that reinstating the biodiesel credit would help lower diesel prices across the country. Since a large share of goods in the United States is transported by truck, lower diesel costs could help control inflation and support consumer affordability.
Agriculture leaders say the loss of the biodiesel tax credit has had a negative impact on farm income. Reduced biodiesel production has weakened demand for farm-grown feedstocks, adding to financial pressure already facing many producers.
The biodiesel industry has also faced challenges due to delays in implementing rules for the Clean Fuel Production Credit. Industry groups note that the program’s complexity has limited its effectiveness and created uncertainty for fuel retailers and biofuel producers.
Data shared by supporters shows that biodiesel production grew steadily while the tax credit was in place. Since the credit expired, production and blending volumes have dropped sharply, raising concerns about the long-term health of the sector.
"SABR applauds Sen. Blackburn for her leadership in introducing the BTC extension in the Senate," said SABR CEO Joe Jobe. "If passed by Congress, this policy would provide desperately needed relief to the biodiesel industry and all of the other industries that biodiesel benefits in the value chain. This includes farmers who are experiencing an economic crisis in agriculture right now."
"Reliable and affordable supplies of biodiesel and renewable diesel are a top priority for America's heating oil dealers, who serve nearly 5 million homes across the country. NEFI is therefore proud to endorse the Consumer Relief and Opportunities for Producers Act," said NEFI President and CEO Jim Collura. "Enactment of this bill would support our mostly small family businesses transition to renewable liquid heating fuels, which offer a lower cost and more immediate solution to reduce building emissions and contribute to regional energy security and diversity."
Organizations representing truck stops, fuel marketers, heating fuel dealers, and renewable fuel producers believe the legislation would provide needed stability. They also say it would support small and family-owned businesses across the fuel and agriculture supply chain.
The bill has bipartisan support and is viewed as a temporary but important step to protect renewable fuel markets, support farmers, and ensure reliable energy supplies while longer-term policy decisions are finalized.
Photo Credit: shutterstock-dickgage
Categories: National