Letter to the Hon. Paul Ryan, Speaker of the House, the Hon. Nancy Pelosi, Democratic Leader of the House, the Hon. Kevin McCarthy, Majority Leader, and the Hon. Steny Hoyer, Democratic Whip - Bipartisan Budget Act
Dear Speaker Ryan, Leader Pelosi, Majority Leader McCarthy, and Whip Hoyer,
As we near the end of the 115th Congress, we would like to draw your attention to an unresolved issue of importance to our constituents and states' economies. The Bipartisan Budget Act of 2018 passed in February this year retroactively extended the biodiesel tax incentive for 2017, but left it expired for 2018 and beyond. 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.
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. During a time when farm income is at its lowest point in more than a decade, crop prices are below the cost of production, and agriculture markets are bearing the brunt of trade disputes, this value is especially important.
Biodiesel has been and continues to be a great American success story. It is made from a diverse mix of resources, including recycled cooking oil in the Northeast and Northwest, and animal fats in the South. It has diversified our fuel supply to help increase our nation's energy security and provides environmental benefits, including reductions of waste and emissions. Biodiesel production supports more than 60,000 U.S. jobs and helps rural communities across the country build new economic opportunities.
Biodiesel and renewable diesel producers are putting investments on hold in the face of the uncertainty created by the off-again, on-again nature of tax incentive eligibility. A multi-year extension of the biodiesel and renewable diesel incentives will provide the industry the certainty it needs to continue to generate the economic and environmental public benefits.
We look forward to working with you in the coming weeks to resolve this issue of great importance to us and our constituents.