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Biodiesel = Jobs
Biodiesel provides a good example of the impact that tax policy and regulatory decisions have on jobs and the economy.
In 2010, Congress let the tax credit for biodiesel production lapse. Dozens of biodiesel plants shut down and thousands of jobs in the industry were lost. Production that year fell to about 315 million gallons, the lowest level since 2006.
Congress reinstated the tax incentive for 2011, and the industry broke records by producing nearly 1.1 billion gallons of fuel. That level of production supports more than 39,000 jobs nationwide. If the pace is maintained and the regulators don’t stymie growth, more than 11,000 jobs could be added in 2012 and 2013.
The trouble is, Congress let the tax incentive expire, again, on December 31, 2011. And, now, the Environmental Protection Agency (EPA) is dragging its feet in setting a meaningful, achievable volume requirement for biomass-based diesel for 2013. By not acting in a timely way to raise the level of biodiesel from the 1 billion gallons required this year to 1.28 billion gallons for 2013, the EPA is getting in the way of this alternative energy development. Biodiesel is proving that the Renewable Fuels Standard set by Congress five years ago works to reduce dependence on foreign oil, improve the environment, and create good-paying jobs across the country.
Last June, I introduced legislation with Senator Maria Cantwell of Washington to simplify and extend the tax incentive for domestic biodiesel production. Our goal was to provide predictability to investors and producers so the United States can continue moving forward to displace imported fossil fuels with low carbon, renewable biodiesel. Now that the incentive has expired, Congress needs to act quickly to renew it and prevent a repeat of the job loss experienced in 2010.
In addition, the EPA needs to take action to grow the biodiesel supply by increasing the biodiesel volume requirement.
Clean-burning biodiesel is creating jobs and making America more energy independent. It’s produced in nearly every state and has been designated an Advanced Biofuel by the EPA.
Tax policy makers in Congress and regulation writers in the Administration should act quickly and in a way that fosters the win-win opportunities in biodiesel.
Monday, February 6, 2012
Biodiesel provides a good example of the impact that tax policy and regulatory decisions have on jobs and the economy.
In 2010, Congress let the tax credit for biodiesel production lapse. Dozens of biodiesel plants shut down and thousands of jobs in the industry were lost. Production that year fell to about 315 million gallons, the lowest level since 2006.
Congress reinstated the tax incentive for 2011, and the industry broke records by producing nearly 1.1 billion gallons of fuel. That level of production supports more than 39,000 jobs nationwide. If the pace is maintained and the regulators don’t stymie growth, more than 11,000 jobs could be added in 2012 and 2013.
The trouble is, Congress let the tax incentive expire, again, on December 31, 2011. And, now, the Environmental Protection Agency (EPA) is dragging its feet in setting a meaningful, achievable volume requirement for biomass-based diesel for 2013. By not acting in a timely way to raise the level of biodiesel from the 1 billion gallons required this year to 1.28 billion gallons for 2013, the EPA is getting in the way of this alternative energy development. Biodiesel is proving that the Renewable Fuels Standard set by Congress five years ago works to reduce dependence on foreign oil, improve the environment, and create good-paying jobs across the country.
Last June, I introduced legislation with Senator Maria Cantwell of Washington to simplify and extend the tax incentive for domestic biodiesel production. Our goal was to provide predictability to investors and producers so the United States can continue moving forward to displace imported fossil fuels with low carbon, renewable biodiesel. Now that the incentive has expired, Congress needs to act quickly to renew it and prevent a repeat of the job loss experienced in 2010.
In addition, the EPA needs to take action to grow the biodiesel supply by increasing the biodiesel volume requirement.
Clean-burning biodiesel is creating jobs and making America more energy independent. It’s produced in nearly every state and has been designated an Advanced Biofuel by the EPA.
Tax policy makers in Congress and regulation writers in the Administration should act quickly and in a way that fosters the win-win opportunities in biodiesel.
Monday, February 6, 2012