Lawmakers Urge Extension of Biodiesel Tax Incentives

February 11, 2019

The Hon. Nancy Pelosi
Speaker
U.S. House of Representatives
H-232
Washington, DC 20515

The Hon. Steny Hoyer
Majority Leader
U.S. House of Representatives
H-107
Washington DC 20515

The Hon. Kevin McCarthy
Republican Leader
U.S. House of Representatives
H-204
Washington DC 20515

The Hon. Steve Scalise
Republican Whip
U.S. House of Representatives
H-148
Washington, DC 20515

Dear Speaker Pelosi, Leader McCarthy, Majority Leader Hoyer, and Republican Whip Scalise,

As we begin the 116^th Congress, we ask you to quickly address an unresolved issue of importance to our constituents and our states' economies. Last February, the Bipartisan Budget Act of 2018 retroactively extended the biodiesel tax incentive for 2017 but left it expired for 2018 and beyond. Now, the industry is once again facing prolonged uncertainty about this policy.

Biodiesel and renewable diesel producers testified before the House Ways & Means Committee last spring and worked with Congress all year to make a case for resolving the off-again, on-again nature of tax incentive eligibility. A multi-year extension of biodiesel and renewable diesel incentives will provide the industry the certainty it needs to continue to generate economic and environmental public benefits.

We believe in making things in America, and there is no reason our fuel sources should not be made here as well. Biodiesel has been and continues to be a great American success story. Biodiesel production supports more than 60,000 good paying jobs in the U.S. and helps rural communities across the country build new economic opportunities. Biodiesel and renewable diesel are made from a diverse mix of resources, including recycled cooking oil and animal fats. It has diversified our fuel supply to help increase our nation's energy security and provide environmental benefits, including reductions of waste and carbon emissions.

Biodiesel blenders, producers, truck drivers, consumers, and farmers share the benefits of the biodiesel and renewable diesel tax incentive. The incentive lowers the price of fuel truck drivers pay which lowers the cost of consumer goods they haul. Biodiesel production can add roughly 63 cents of value to every bushel of soybeans. That value is especially important right now, when farm income is at its lowest point in more than a decade, crop prices are below the cost of production, and farmers are bearing the brunt of ongoing trade disputes.

We strongly support a multi-year extension of the incentive to provide the policy certainty necessary to help the biodiesel industry and rural economies continue to grow.

We look forward to working with you in the coming weeks to resolve this issue of great importance to us and our constituents.

Sincerely,

Dave Loebsack
Member of Congress

Darin LaHood
Member of Congress

Abby Finkenauer
Member of Congress

Roger Marshall M.D.
Member of Congress

Tom Emmer
Member of Congress

Ann McLane Kuster
Member of Congress

Jim Hagedorn
Member of Congress

Cindy Axne
Member of Congress

Jackie Walorski
Member of Congress

Don Bacon
Member of Congress

James Comer
Member of Congress

Sam Graves
Member of Congress

Steve Watkins
Member of Congress

Jim Himes
Member of Congress

Cheri Bustos
Member of Congress

Derek Kilmer
Member of Congress

Mike Bost
Member of Congress

John B. Larson
Member of Congress

Dusty Johnson
Member of Congress

Jeff Fortenberry
Member of Congress

Angie Craig
Member of Congress

Ron Estes
Member of Congress

Mike Kelly
Member of Congress

Rodney Davis
Member of Congress

Diana DeGette
Member of Congress

Peter DeFazio
Member of Congress

Collin C. Peterson
Member of Congress

Steve King
Member of Congress

Blaine Luetkemeyer
Member of Congress

David N. Cicilline
Member of Congress

Vicky Hartzler
Member of Congress

Adam Kinzinger
Member of Congress

Joe Courtney
Member of Congress

Emanuel Cleaver II
Member of Congress

Paul D. Tonko
Member of Congress

Rosa L. DeLauro
Member of Congress

Jason Smith
Member of Congress

Brett Guthrie
Member of Congress

Lucille Roybal-Allard
Member of Congress

Adrian Smith
Member of Congress

John Moolenaar
Member of Congress

Ann Wagner
Member of Congress

Michael Guest
Member of Congress

James R. Langevin
Member of Congress