WASHINGTON, D.C.– An extension of the federal biodiesel tax incentive passed the U.S. House Ways and Means Committee yesterday, along with other legislative provisions critical to the sustained growth of the biodiesel industry. The National Biodiesel Board (NBB) applauded the committee’s recognition that clean-burning biodiesel will play a key role in future efforts to reduce America’s dependence on foreign oil.

Specifically, the Renewable Energy and Energy Conservation Act of 2007 includes:

• Extension of the biodiesel tax incentive through 2010. The provision is based on legislation introduced this year by Representatives Earl Pomeroy (D-ND) and Kenny Hulshof (R-MO).
• A provision authored by Rep. Lloyd Doggett (D-TX) to prevent large integrated oil companies from claiming the $1.00 per gallon renewable diesel tax credit. Absent this provision, taxpayers would subsidize existing oil refineries at the expense of stand-alone biodiesel and renewable diesel producers who add to America’s limited refining capacity.
• The closing of the so-called “splash and dash” loophole. This would stop foreign biodiesel producers from shipping their product bound for foreign markets through the U.S. for the sole purpose of claiming the U.S. biodiesel tax incentive.

“Extension of the tax incentive and a proper definition of renewable diesel are key priorities for NBB, and we thank the Ways and Means Committee for acting on these issues,” said Joe Jobe, NBB CEO. “Our industry, however, is concerned with provisions in the bill that would restrict the ability of U.S. producers to sell product abroad, and we must ensure that the domestic biodiesel industry is not inadvertently put at a competitive disadvantage. We hope to work with Congress moving forward to address this concern.”

The NBB is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S. NBB’s membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.