Congressional inaction results in lost jobs

Senator Baucus and I have sent a letter to Senate leaders to say that the expiring biodiesel tax credit and similar provisions need to be addressed as soon as possible.  With our letter, we're trying to undo some of the terrible damage that's been done to biodiesel producers by the fact that the leaders of Congress are letting the biodiesel tax credit expire on December 31.

This tax credit is non-controversial, and has broad-based support in Congress.  It could have passed as a stand-alone bill at any time during the whole year.  Instead, its extension has been held hostage by Senator Reid and Speaker Pelosi in order to try to get other more controversial tax policies through.  The House of Representatives adjourned for the year without the tax credit being extended, which was a politically-charged strategy with serious consequences.

America's biodiesel industry will grind to a halt on January 1.  As many as 23,000 jobs could be lost if nothing is done to extend the tax incentive or address regulatory delays at the Environmental Protection Agency.  Iowa is one of the biggest biodiesel producing states in the country, with 15 facilities.  All together, all but six states have some biodiesel production, so this inaction will impact workers and jobs nationwide in 44 states.  They are green jobs that are good for both the environment and the economy.  Without the tax incentive, biodiesel blends will be priced out of the marketplace and oil companies will stop purchasing biodiesel.

The inaction in Congress means there's no certainty for investors and lenders.  I authored the biodiesel tax credit as Chairman of the Senate's tax-writing committee four years ago.  I understand its value and the positive difference it's making, and I'll continue to do whatever is possible to make congressional leaders understand what's at stake for jobs and the development of alternative energy.  It is a major mistake for them to let the biodiesel tax credit lapse on December 31.  It will mean lost jobs.  At this point, Congress should act as quickly as possible in January to try to repair as much of the damage as is possible.