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Federal Issues

Domestic Production Incentive 

Since the $1 per gallon incentive began in 2005, biodiesel production has increased from 100 million to nearly 3 billion gallons. But a flaw in the tax credit has allowed foreign-produced fuel to take over $1 billion U.S. tax dollars off-shore while limiting U.S. production to about 65% capacity. Congress needs to reinstate, reform and extend the incentive long-term to focus it on U.S. biodiesel to create more American jobs and more American-made fuel. Click here for more information.

Renewable Fuels Standard (RFS2)

The Renewable Fuels Standard requires advanced biofuel blending by petroleum refiners and importers and is the industry’s significant market driver today.

The U.S. Environmental Protection Agency implemented the law in 2010 and each year sets volume requirements for the amount of renewable fuels consumed in the United States, including biomass-based diesel. 

Most recently, EPA officials proposed cuts to the volume requirements for biomass-based diesel and advanced biofuel. The agency is expected to release the final rule soon. 
Read more about the RFS2 here.