• 8
According to the real-time counter on the homepage of the National Biodiesel Board (NBB), it's been 108 days since the $1.00 per gallon biodiesel tax credit expired. With an entire industry stalled and no clear end to the biodiesel purgatory in sight, more and more groups are petitioning their legislators to bring the tax credit back. Most recently, the National Association of Truckstop Operators (NATSO) added its voice to the growing roar of angry alt-fuel proponents.

Since the biodiesel tax credit expired at the end of 2009, NATSO said, U.S. biodiesel production has plummeted by more than 80 percent, forcing motorists and truckers to change their buying habits as the price of biodiesel surpasses other fuels. Lisa Mullings, NATSO President and CEO had this to say about the issue:
The truckstop and travel plaza industry is fully engaged in supporting U.S. environmental efforts. Fuel retailers want to continue making investments in biodiesel infrastructure and want to continue selling biodiesel to customers. But without this tax credit, they can't do that. Congress imposed biodiesel production mandates to stimulate renewable fuel development. Without an extension of the tax credit, the production mandate is meaningless and consumer demand for the product erodes.
The $1-per-gallon blender tax credit makes biodiesel cost competitive with conventional diesel fuel, NATSO explained, and the expiration of the tax credit, coupled with sagging consumer demand, has caused many producers to shut down or severely scale back production.

In a letter addressed to Senators Max Baucus (D-MT) and Charles Grassley (R-IA) and Representatives Sander Levin (D-MI) and Dave Camp (R-MI), NATSO urged the lawmakers to quickly convene a conference on the American Worker, State and Business Relief Act of 2010 and to reinstate the tax credit that expired Dec. 31. The letter asked that the tax credit be retroactively applied to January 1, 2010.

[Source: FleetOwner | Image: respres - C.C. License 2.0]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 8 Comments
      • 4 Years Ago
      Everyone wants a handout, but no one wants to pay for it.
      • 4 Years Ago
      I want a pony and I want it yesterday!

      $1 per gallon is a waste of taxpayer money, the ethanol subsidy is only 50 cents per gallon. I think that the government should favor renewable fuels, but they should do they by raising taxes on petroleum gas/diesel otherwise the mafia will import diesel, blend it and then export it to Europe.
      http://www.biofuels-news.com/industry_news.php?item_id=1937
      • 4 Years Ago
      I forget what ABG poster said it, but to whoever said that biodiesel can survive without a subsidy....

      Yeah.
      • 4 Years Ago
      I tire of experts with no practical experience - in this case with long haul trucking.

      There's another great reason why folks who live on the diesel road love biodiesel. Those horses out front run better, pull harder, operate longer for less cost running on biodiesel.

      Give a road warrior an equal price for veggie oil - the choice is easy.
      • 4 Years Ago
      Paul,
      I agree with your general sentiment, but I don't think it's fair to compare the $1 subsidy on bio-diesel and even the $0.50 on ethanol with gas or petroleum based diesel. As you mentioned it would be better to pass a "tax" on gasoline. Here's where I disagree...we should instead pass on THE ACTUAL COST OF GASOLINE!

      We don't spend a penny of our military on biofuels. We don't spend $500Billion a year for a standing military which is almost exclusively dedicated to keeping the middle east stable and oil shipping lanes open. The nearly half a trillion a year we've spent on Iraq and Afghanistan almost every year this decade. Add all that up and divide by the number of gallons we actually use in our car....and you get $8.33 PER GALLON.

      Why don't we pass even a fraction of that cost on to using petroleum. We'd find that biofuels (and even batteries for EVs) are a hell of a lot cheaper than we all think.
        • 4 Years Ago
        I agree we should stop subsidizing oil.

        This past year the exxonmobile earned $19.42 billion in profit, down from $45 billion in 2008, still more than any other corporation in the world.

        In 2008 the company paid $17.6 billion in taxes to other countries, none to the IRS.
      • 4 Years Ago
      And how many are Tea Party members?
      • 4 Years Ago
      Instead of a $1 per gallon tax break on bio-fuels, how about a $1 per gallon increase on regular fuels...