Rep. Peterson signs onto Biodiesel Tax Credit Extension

Rep. Collin Peterson, who chairs the House Agriculture Committee, has joined his colleague, Rep. Angie Craig, by signing onto the Biodiesel Tax Credit Extension of 2019.

“We thank Rep. Peterson for supporting farmers in his district and throughout Minnesota,” says Minnesota Soybean Growers Association (MSGA) Vice President Jamie Beyer, who farms in Peterson’s district in western and northwestern Minnesota. “As the chair of the House Ag Committee, it’s important to us that Congressman Peterson takes a leading position on such a vital piece of legislation to our growers.”

Since a two percent biodiesel blend (B2) became law in 2002, Minnesota has been the national leader in biodiesel. As the only advanced biofuel recognized by the EPA, biodiesel contributes nearly $1.7 billion to Minnesota’s economy and adds 5,400 jobs to the state, increasing demand for soybeans by 13 percent. It’s also an environmental winner, helping reduce greenhouse gas emissions by removing the equivalent of 230,000 cars from Minnesota’s roads each year. With the move to a 20 percent biodiesel blend (B20) last summer, Minnesota remains at the forefront of renewable fuel use in the United States.

House Ag Chair Collin Peterson is putting his support behind the Biodiesel Tax Credit Extension.

The House legislative language mirrors the biodiesel tax incentive provision in Senate legislation introduced by Sen. Chuck Grassley, who chairs the Finance Committee, and Sen. Ron Wyden, ranking member of the Senate Finance Committee. The Senate legislation (S.617) would provide a two-year extension of expired temporary tax incentives, including the biodiesel and renewable diesel tax incentive.

The U.S. biodiesel market has grown from about 100 million gallons in 2005, when the tax incentive was first implemented, to more than 2.6 billion gallons annually since 2016. The biodiesel tax incentive helps producers across the country continue to invest in capacity for future growth.

The U.S. biodiesel and renewable diesel industry supports more than 60,000 jobs, paying more than $2.5 billion in annual wages and generating more than $11 billion in economic impact. Every 100 million gallons of biodiesel production supports 3,200 jobs.

MSGA is urging Minnesota’s remaining House delegation – Rep. Tom Emmer, Rep. Jim Hagedorn, Rep. Betty McCollum, Rep. Ilhan Omar, Rep. Dean Phillips and Rep. Pete Stauber – to sign onto the extension.

“Biodiesel benefits both urban and rural Minnesotans in a myriad of ways, both economically and environmentally,” Beyer says. “MSGA is calling on both parties to support an extension. Supporting renewable fuels has broad bipartisan support nationally and Minnesota should be no different.”

Follow The Conversation