EMA Urges Congress To Extend Biodiesel/Advanced Biofuels Tax Credit

Friday, EMA sent a letter to House and Senate Leadership, urging Congress to act as expeditiously as possible on a multiyear extension of the biodiesel/advanced biofuels blender’s tax credit that is set to expire at the end of 2022.

Extending the blender’s tax credit and ensuring that the credit amount is at parity with other transportation fuels that compete for the same feedstock, such as sustainable aviation fuel (SAF), would provide certainty for thousands of motor fuel and heating fuel businesses who depend on the credit to lower fuel costs for consumers and reduce carbon emissions.

Since the credit’s inception, the market responded as Congress intended.

The letter also points out EMA’s opposition for awarding favorable blender’s tax credit treatment for sustainable aviation fuel (SAF) compared to on and off-road biodiesel and renewable diesel.

Granting favorable treatment to SAF would disrupt and eventually eliminate the market for on and off-road biodiesel and renewable diesel by diverting limited feedstocks to SAF and lead to higher prices at the pump as well as home heating fuel prices.

EMA also notes that the heating “oil” industry has led the way on converting to a low carbon alternative fuel.

For nearly two decades, the industry through the National Oilheat Research Alliance (NORA), has developed low-carbon liquid fuel (LCLF) made from cellulose on a commercial scale and advance heating technologies focusing on efficiency and zero net carbon.

Through these efforts, the industry has been using five percent biodiesel for over a decade and is moving to higher blends. Dealers from Seattle to Boston are successfully selling and experimenting with 100 percent biodiesel.

In addition to biodiesel, the industry has been working closely with Biofine Development to introduce into the market a liquid fuel that is derived from cellulose (waste wood products, municipal solid waste, etc.), a net-negative carbon liquid fuel for use in the home heating fuels market, as it also generates specialty chemicals that would otherwise be produced by petrochemicals.

This product has been tested successfully in both residential and commercial applications.

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