Extension US biodiesel tax credit dies in Senate

13 March 2012 23:19  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Legislation that would have extended the US biodiesel tax incentive through the end of 2012 was voted down by the US Senate on Tuesday.

“This is another missed opportunity for Congress to do something to boost the economy,” said Anne Steckel, the National Biodiesel Board’s vice president of federal affairs. “We're talking about thousands of jobs across the country that are affected by this, and the very real possibility that biodiesel plants will go out of business.”

Only 49 senators voted in favor of the amendment to the transportation bill, sponsored by Senator Debbie Stabenow a Democrat from Michigan.

A total of 60 votes was needed for the measure to be added to the bill. The $1/gal (€0.20/litre) credit expired on 31 December.

The fate of that incentive is considered to be critical by most biodiesel producers.

When the credit lapsed in 2010, dozens of plants shut down and thousands of jobs were lost as production plummeted to the lowest level since 2006.

The amendment also would have added cultivated algae, cyanobacteria and lemna to the list of qualified feedstocks for the purpose of the cellulosic biofuel producer credit. It would have also extended the cellulosic biofuel producer credit through the end of 2013.

Calls to Senator Stabenow’s office for comment were not returned.

Biodiesel is an alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.

($1 = €0.76)

By: Leela Landress
+1 713 525 2653

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