The “Strengthening Economic and Energy Development (SEED) Act” would extend the Section 40A biodiesel tax credit of the Internal Revenue Code through 2029, restoring a successful energy policy that promotes the production of biofuels, supports America’s long-term energy independence, and helps keep the cost of diesel low.
"With these tax credits already expired, producers are facing uncertainty at a time when they should be focused on growing and investing," said Miller-Meeks. "This legislation restores these incentives and provides the certainty our farmers and producers need. By extending these tax credits, we are supporting American agriculture, strengthening rural communities, and advancing an all-of-the-above energy strategy that keeps costs down and reduces reliance on foreign energy."
The SEED Act represents a significant opportunity to lower energy prices for American consumers while boosting domestic energy production, ultimately reducing the nation’s reliance on foreign energy.
“Reinstating the Biodiesel Tax Credit allows us to tap into a policy solution that we know will serve as an economic engine by boosting domestic energy production and lowering costs for American families,” said Carey. “Strengthening our supply of biodiesel and renewable diesel will have a ripple effect across the American economy — supporting farmers who grow crops used in renewable fuels and alleviating cost pressures on fuel and consumer goods.”
Biodiesel and renewable diesel are advanced biofuels that are generally produced from feedstocks such as soybean oil, recycled cooking oil, or other animal fats. The U.S. Environmental Protection Agency (EPA) defines the two fuels as renewable fuels that emit at least 50 percent less lifecycle greenhouse gas emissions than fossil fuel alternatives. In many cases, biodiesel and renewable diesel reduce emissions by more than 70 percent.
In Ohio alone, biodiesel production supports over 1,500 jobs and contributes more than $806 million in economic activity. There are two biodiesel refineries in operation statewide, both of which use Ohio-grown soybeans in their production process.
The bill has earned support from the Association of American Railroads (AAR), American Trucking Associations (ATA); Energy Marketers of America (EMA); National Association of Convenience Stores (NACS); National Energy & Fuels Institute (NEFI); NATSO, Representing America’s Travel Centers and Truck Stops; SIGMA: America’s Leading Fuel Marketers, Sustainable Advanced Biofuel Refiners and Truckload Carriers Association (TCA).
“The SEED Act would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, helping to stabilize fuel supply options and mitigate fuel costs for consumers,” said NATSO President and CEO Max McBrayer. “We commend Rep. Carey and the Members of Congress who recognize the critical role that renewable diesel and biodiesel play in ensuring stable fuel supplies while offering consumers a more affordable alternative to conventional fuel. We urge Congress to extend this successful policy as soon as possible.”
“Alternative fuels such as renewable diesel and biodiesel have become ingrained in the economic fabric of fleets striving to lower emissions while managing supply chain costs,” said Jim Mullen, President and CEO for the Truckload Carriers Association. “The cost-effective and dependable movement of freight hinges in large part on access to affordable and reliable fuel supplies. The Biodiesel Blenders’ Tax Credit is a critical piece of that equation. Lower costs for trucking translate to real savings for consumers on all goods moved by truck.”
