Rep. Emmer signs onto Biodiesel Tax Credit Extension

May 16, 2019 / Categories: Uncategorized

Congressman Tom Emmer, who represents Minnesota’s Sixth District, joined Rep. Angie Craig and Rep. Collin Peterson this week by signing onto the Biodiesel Tax Credit Extension of 2019.

“We appreciate Congressman Emmer for supporting farmers in his district and throughout Minnesota,” says Minnesota Soybean Growers Association (MSGA) Vice President Jamie Beyer. “As chair of the National Republican Congressional Committee, it’s vital to us that Congressman Emmer has taken a proactive stance on such a valuable 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 U.S. 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 U.S.

Rep. Tom Emmer takes a selfie with President Donald Trump following a 2018 roundtable event in Duluth.

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. 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, both economically and environmentally,” Beyer says. “MSGA is calling on both parties to support an extension. Supporting renewable fuels has broad bipartisan support throughout the nation, and it’s now more important than ever that we get this extension passed.”

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