US Senators Chuck Grassley, R-Iowa, and Amy Klobuchar, D-Minn., have introduced bipartisan legislation to extend the Small Agri-Biodiesel Producer Credit through 2029. The credit is currently scheduled to expire at the end of 2026, Biodiesel Magazine reported.
The bill, S. 5583, would extend the credit for three additional years. It is available to US companies producing up to 60 million gallons per year (MMgy) of biodiesel from domestic agricultural feedstocks.
Eligible producers can claim a credit of 20 cents per gallon on their first 15 million gallons of production.
The legislation has received support from industry groups representing biodiesel producers and renewable fuel companies.
Clean Fuels Alliance America welcomed the bill, saying the extension would provide greater certainty to small biodiesel producers in Iowa, Minnesota and other parts of the country.
“Small biodiesel producers are making an outsized contribution to America’s energy security right now,” said Kurt Kovarik, vice president of federal affairs at Clean Fuels.
The Iowa Renewable Fuels Association (IRFA) also supported the proposed extension, saying the credit would provide additional certainty for small biodiesel producers and help them continue investing and producing fuel.
“Small biodiesel producers are an important part of Iowa’s rural economy, and they need certainty to keep investing and producing,” said Monte Shaw, executive director of the IRFA.
The Iowa Biodiesel Board also welcomed the legislation. Grant Kimberley, executive director of the board, said the credit has been important for small and independent biodiesel plants in the state, helping them deal with difficult market conditions and maintain employment in rural communities.
Kimberley also said the benefits extend beyond biodiesel plants, as producers purchase soybean oil and other agricultural feedstocks from farmers. According to him, extending the credit would give small producers greater certainty to continue investing and producing biodiesel.
