Washington, D.C. — Representatives Annie Kuster (D-NH), Mike Carey (R-OH), Claudia Tenney (R-NY), and Mariannette Miller-Meeks (R-IA) introduced the bipartisan Biodiesel Tax Credit Extension Act of 2024. The legislation extends the 40A Biodiesel Tax Credit through 2025 and promotes the production and use of biodiesel fuels to help lower consumer energy costs and reduce harmful greenhouse gas emissions. Blends of biodiesel and conventional heating oil are safe, efficient, and environmentally competitive home heating fuel alternatives.

Full bill text is available here.

“Biodiesels are efficient and competitive alternatives to traditional diesel fuel sources and can play a critical role in accelerating the United States’ transition to a clean, carbon-neutral economy,” said Congresswoman Kuster. “Granite Staters are all too familiar with high energy prices, and this bipartisan legislation will help lower costs for small businesses and households across New Hampshire while reducing harmful emissions–a win-win.”

“Biodiesel is a homegrown resource that can support our long-term energy independence and support farmers, producers, and energy workers right here in Ohio,” said Carey. “With America’s energy dominance at stake, we’re working across the aisle to strengthen our supply of biodiesel for the years to come.”

The bill has earned support from the NATSO, Representing America’s Travel Centers and Truck Stops, SIGMA: America’s Leading Fuel Marketers, National Association of Convenience Stores, American Trucking Associations, Truckload Carriers Association, Energy Marketers of America, Small Advanced Biofuel Refiners, and the National Energy and Fuel Institute.

“Renewable diesel and biodiesel represent a vital component of any sound strategy for lowering transportation sector emissions. Trucks are harder and more expensive to electrify than cars, and while we pursue aspirational goals we still must capitalize on economically viable solutions that help us lower emissions today,” said David Fialkov Executive Vice President of Government Affairs for NATSO and SIGMA. “We commend [Lawmakers] for recognizing the critical role that renewable diesel and biodiesel play in lowering fuel costs for consumers by extending the Biodiesel Tax Credit at the blenders' level. We urge Congress to extend this successful policy as soon as possible.”

 “Tax incentives for biodiesel and renewable diesel blending have worked to successfully extend fuel supply and incentivize fuel retailers to invest in low-carbon alternative fuels at a cost that is attractive to consumers,” said Doug Kantor, General Counsel at NACS. “This legislation is key to supporting our industry’s continued investment in advanced renewable fuels.”

“To get to zero emissions, we need more technology-neutral solutions in the immediate term, including alternative fuels like biodiesel and renewable diesel,” said Henry Hanscom, ATA Senior Vice President of Legislative Affairs. “This legislation would expand access to these low-carbon, proven energy sources and dramatically reduce our environmental impact.”

“The U.S. economy depends upon the affordable and reliable movement of freight, and part of that equation includes the ability of motor carriers to access affordable and reliable fuel to power their fleets,” said David Heller, Senior Vice President of Safety and Government Affairs for the Truckload Carriers Association. “To the extent that we can lower emissions and fuel prices while improving the economy, the trucking industry will always support those initiatives. The Biodiesel Blenders’ Tax Credit is a perfect example of how that can be achieved.”

“While the industry works to develop new, clean truck technologies, fleets must be able to power the commercial vehicles that will operate on the nation’s roads for many years to come in a sustainable and affordable manner,” said Jim Mullen, Executive Director of the Clean Freight Coalition. “We appreciate [Lawmakers] for continuing to ensure the supply of low-carbon fuels that reduce trucking’s carbon footprint.”

“The National Energy & Fuels Institute (NEFI) applauds the introduction of the Biodiesel Tax Credit Extension Act of 2024, a bipartisan bill to provide a one-year extension of the existing biodiesel and renewable diesel blenders' tax credit (BTC). The BTC has been crucial in supporting the heating oil industry's transition to renewable liquid heating fuels, which offer an immediate, cost-effective, and equitable path to carbon reduction for the five million American homes it serves,” said NEFI Acting President & CEO Jim Collura. “The introduction of this bill is a vital step in ensuring a stable supply of renewable liquid heating fuels in the broader Northeast, where 90 percent of home heating oil is used. Extending the BTC will provide much-needed certainty for our mostly small, family-owned and operated heating fuel businesses and their consumers and keep us moving forward – not backward – in the ongoing effort to reduce building emissions."

Biodiesels are a non-toxic, biodegradable type of biofuel produced from a combination of soybean oil, recycled cooking oil, and animal fats. Research conducted by the Environmental Protection Agency indicates that biodiesel fuel sources emit 11% less carbon monoxide and 10% less particulate matter than traditional diesel fuel sources. The biodiesel tax credit is one of several incentives included in Section 40A(g) of the Internal Revenue Code of 1986.

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