In Missouri, the Sustainable Advanced Biofuel Refiners (SABR) Coalition, a national biodiesel trade association made up of over 70 organizational members throughout the biodiesel value chain, sent a letter April 29 to congressional leaders urging them to retroactively reinstate the biodiesel blenders tax credit (BTC) from Jan. 1, 2025, through Dec. 31, 2026.
The expiration of the $1-per-gallon BTC, also known as Section 40A, and insufficient guidance on the new Section 45Z clean fuel production tax credit have effectively shut the biodiesel industry down, SABR stated in its letter.
The SABR Coalition stressed that even if 45Z is improved legislatively, it doesn’t resolve the main reason that the biodiesel industry is shut down, which is the lack of implementing regulations to govern the credit. In fact, this would start the clock over on getting those implementing regulations in place.
Biodiesel plants across the country have shut down due to this unforgiving but correctable gap in federal policy between the BTC expiring and the implementation of 45Z regulations. Moreover, it’s not just biodiesel producers who are feeling the pain. The economic downturn in biodiesel is impacting industries—and individual Americans with families who own, manage or work for businesses in those sectors—across the entire spectrum of the value chain, from soybean farmers to glycerin buyers and everyone in between.
Tags: biodiesel, Missouri, SABR
Category: Policy
