National Biodiesel Board Applauds House Passage of Energy Bill
Bill Extends Tax Incentive, Diversifies America’s Diesel Fuel Pool

WASHINGTON, D.C.– The National Biodiesel Board (NBB) applauds the U.S. House of Representatives' passage of energy legislation with broad renewable fuel provisions. The Energy Independence and Security Act (H.R. 6) expands the Renewable Fuels Standard (RFS) in a manner that will encourage increased use of biodiesel, and extends the federal biodiesel tax incentive.

The Energy Bill, which passed by a vote of 235 to 181, will expand the existing RFS to 36 billion gallons by 2022. It would provide for a renewable requirement in diesel fuel, to be met by biodiesel and other biomass-based diesel fuels. The legislation specifically requires that 500 million gallons of biodiesel and biomass-based diesel fuel be blended into the diesel pool in 2009, gradually ramping up to one billion gallons by 2012.

Additionally, the bill extends the biodiesel tax incentive through Dec. 31, 2010, which helps make biodiesel competitive with petroleum diesel fuel in the marketplace. The bill also properly defines the renewable diesel tax credit as it pertains to biomass that is co-processed with petroleum. Lastly, the bill closes the “splash and dash” loophole. This will ensure that foreign-produced biodiesel cannot be transshipped through the U.S. for the sole purpose of claiming the biodiesel tax incentive.

“This legislation is an all-around win for achieving America’s energy and environmental goals,” said Joe Jobe, NBB CEO. “We appreciate the House’s willingness to support the U.S. biodiesel industry and the important role biodiesel will play in reducing our dependence on foreign oil and reducing greenhouse gas emissions.”

Biodiesel is an environmentally safe fuel, and rises to the top of transportation fuels when weighing carbon footprint, life cycle greenhouse gas emissions and energy balance. According to the U.S. Department of Agriculture’s lifecycle study, B100 biodiesel reduces lifecycle carbon emissions by 78%. Biodiesel is also an efficient fuel, as it creates 3.2 units of energy for each unit of energy consumed in the production of the fuel.

The NBB is the national trade association of the biodiesel industry. Its membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.

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