Fuel Retailers Applaud House Legislation to Extend the Biodiesel Tax Credit

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Jul 23, 2024, 14:50 ET

ALEXANDRIA, Va., July 23, 2024 /PRNewswire/ -- NATSO, representing America's travel centers and truck stops, SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS), commended a bipartisan group of lawmakers for introducing the "Biodiesel Tax Credit Extension Act of 2024," which would extend the biodiesel blender's tax credit. The legislation is sponsored by Representatives Mike Carey (R-Ohio), Claudia Tenney (R-NY), Ann Kuster (D-NH.), and Rep. Mariannette Miller-Meeks (R-Iowa).

H.R. 9060 would extend the biodiesel tax credit for one year at the blender level. Extending the biodiesel blender's tax credit would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, which is far better for the environment than petroleum-diesel. Since 2004, the biodiesel tax credit has effectively spurred fuel retailers to invest in the necessary infrastructure to sell low-carbon alternative fuels while encouraging consumers to buy renewable fuel blends due to their lower cost. The biodiesel tax credit helps create jobs, reduce the transportation sector's greenhouse gas emissions, and enables fuel retailers to offer more competitively priced diesel fuel.

"Renewable diesel and biodiesel represent a vital component of any sound strategy for lowering transportation sector emissions. Trucks are harder and more expensive to electrify than cars, and while we pursue aspirational goals, we still must capitalize on economically viable solutions that help us lower emissions today," said David Fialkov Executive Vice President of Government Affairs for NATSO and SIGMA. "We commend Representatives Carey, Kuster, Tenney and Miller-Meeks for recognizing the critical role that renewable diesel and biodiesel play in lower fuel costs for consumers by supporting an extension of the Biodiesel Blender Tax Credit. We urge Congress to extend this successful policy as soon as possible."

"This legislation is key to supporting our industry's continued investment in advanced renewable fuels," said Paige Anderson, Director of Government Relations at NACS. "We applaud Congressman Carey for demonstrating leadership on this issue and encourage all Members of Congress to support this bill, which will extend fuel supply and incentivize fuel retailers to invest in low-carbon alternative fuels at a cost that is attractive to consumers."

A diverse group of stakeholders support this policy because it lowers the price consumers pay to fuel their vehicles and heat their homes.

Biodiesel historically has been the most widely consumed biofuel for use in commercial trucking and represents the best opportunity to reduce carbon emissions from the nation's commercial trucking fleet for the foreseeable future.

The biodiesel tax credit lowers the price that truck drivers pay for diesel fuel, which in turn lowers the cost of shipping and therefore the price consumers pay for products that are moved by truck. Extending the biodiesel tax credit will safeguard the ability of motor carriers to reduce carbon emissions in the nation's existing commercial fleets while lowering fuel prices and the cost of goods for consumers.

The biodiesel blender's tax credit has worked successfully to build a robust renewable diesel industry in the United States while decreasing carbon emissions associated with transportation fuel. The U.S. biodiesel and renewable diesel market has grown to approximately 4 billion gallons in 2023 from roughly 100 million gallons in 2005.

Biodiesel and renewable diesel eliminated 15 million metric tons of CO2 in California alone in 2020, the equivalent of taking more than 3 million passenger cars off the roads. Compared with petroleum-based diesel, renewable diesel and biodiesel reduce greenhouse gas emissions by up to 80 percent. The California Air Resources Board recently underscored their important role in reducing carbon emissions, announcing that renewable diesel and biodiesel constitute more than half of the diesel supply in California.

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About NATSO, SIGMA and NACS

NATSO is the trade association of America's travel plaza and truck stop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel plaza and truck stop industry; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. Contact: Tiffany Wlazlowski Neuman, Vice President, Public Affairs. 202-365-9459

SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. Representing a diverse membership of approximately 250 independent chain retailers and marketers of motor fuel, the association serves to further the interests of both the branded and unbranded segment of the industry while providing information and services to members. For more information visit SIGMA.org.

NACS advances the role of convenience stores as positive economic, social and philanthropic contributors to the communities they serve. The U.S. convenience store industry, with more than 153,000 stores nationwide selling fuel, food and merchandise, serves 165 million customers daily—half of the U.S. population—and has sales that are 10.8% of total U.S. retail and foodservice sales. NACS has 1,900 retailer and 1,800 supplier members from more than 50 countries.

SOURCE NATSO, Inc.