Search:
Policy Masthead
 

EMAIL ALERTS


 
 

Biofuels

The U.S. Oleochemical industry is the original "green" chemistry and has historically supplied raw materials used in the manufacture of cleaning products. Federal biofuels policies, via tax incentives and the Renewable Fuel Standard (RFS2), provide an economic disadvantage to these traditional uses. The American Cleaning Institute (ACI) works to restore equitable access to feedstocks used in both the production of soaps and detergents and biofuels.

A Path Forward:

Prior to adjournment of the 115th Congress (2017-2018) the House of Representatives passed HR. 88, which provides a new path forward for biodiesel tax credits that use animal fats as a feedstock.  The legislation, proposed by House Ways and Means Chairman Kevin Brady (TX-08), extended the Biodiesel and Renewable Diesel income tax credit and established an eventual phase-out.  The $1.00 per gallon credit for biodiesel production was extended through 2021 and then phased out over the following years: 2022 to $0.75, 2023 to $0.50, and 2024 to $0.33. The legislation specifies that "no credit is available for biodiesel used or sold after 2024."

Representative Brady’s legislation acknowledges the market disadvantage the tax credit places on producers of oleochemicals and seeks to correct this inequity.  The Senate ultimately did not consider HR. 88 prior to adjournment and the Biodiesel and Renewable Diesel income tax credit remains lapsed since it was not extended beyond December 31, 2017.

ACI’s advocacy efforts over the years has sought to restore equitable market access for ACI members who rely on oleochemicals and have not benefitted from any similar government subsidy.  To that end, ACI successfully worked with Representative Randy Weber (TX-14) to introduce HR. 1866 (115th Congress), the Stop Animal Fat Tax Credits Act of 2017, which would have eliminated the tax credit for biodiesel produced using animal fats.  Congress has finally identified a predictable path forward for the phase-out of this subsidy.  Any reauthorization of the biodiesel tax credit should reestablish equitable market access through a phase-out or restricting tax credits for biodiesel produced with animal fats.

Read More...

 
 

ACI Comments to EPA - Renewable Fuel Standard Program: Standards for 2014, 2015, and 2016 and Biomass-Based Diesel Volume for 2017

ACI Comments to the U.S. Senate Regulatory & Federal Management Subcommittee Hearing: "Re-examing EPA's Management of the Renewable Fuel Standard Program" - June 18, 2015

ACI Comments to EPA on the 2014 Renewable Fuel Standard proposed rule - January 28, 2014

ACI letter to the 2013 Farm Bill Conference Committee - October 22, 2013

ACI letter to the U.S. Senate Committee on Finance: Reform of the U.S. Tax Code and U.S. Energy Policies Impact on the U.S. Oleochemical Industry - July 30, 2013

ACI Comments to the House Energy and Power Subcommittee Hearing: "Overview of the Renewable Fuel Standard: Stakeholder Perspectives" - July 23, 2013

ACI Comments to the U.S. House of Representatives Energy & Commerce Committee: Renewable Fuel Standard (RFS) Review - Agricultural Impacts - April 29, 2013

ACI Comments to the U.S. House of Representatives Committee on Ways and Means - Energy Tax Reform Working Group - April 15, 2013

ACI Comments on Regulation of Fuels and Fuel Additives - 2013 Renewable Fuel Standards - March 22, 2013

ACI Comments on Regulation of Fuels and Fuel Additives - 2012 Renewable Fuel Standards - August 11, 2011