The American Renewable Fuel and Job Creation Act of 2017 was recently introduced in the Senate by Sen. Chuck Grassley, along with 15 other bipartisan original cosponsors.
This bill switches the biodiesel tax credit from a blender’s to a producer’s credit, thus incentivizing domestic production and allowing U.S. biodiesel producers a level playing field to compete with foreign production.
Additionally, extending and restructuring the biodiesel tax credit would mobilize U.S. capacity and create American manufacturing jobs.
The highlight for American soy producers?
Approximately half of U.S. biodiesel is produced from soybean oil that is a by-product of soybean production, which is driven by demand for protein meal (soybeans are 80% meal and 20% oil).
In the coming weeks, the House is expected to propose a companion bill to S. 944 and ASA is asking soy growers to contact their House representatives in support of this bill though the Soy Action Center.
There is more than enough U.S. production capacity to meet U.S. demand, and with significant underutilized capacity in the domestic industry, biodiesel producers across the country are waiting for the right policy signals to expand production.