Part of an omnibus revenue bill, the Nebraska Biodiesel Tax Credit Act, provides a 14-cent per gallon credit for the sale of biodiesel. The credit is applied to a Nebraska fuel retailer’s income tax liability. Total funding for the program is $5 million.

“We applaud Gov. Pillen for signing legislation that will continue to strengthen the momentum of a growing biodiesel market,” said Donnell Rehagen, CEO for Clean Fuels Alliance America. “Nebraska has responded to the call to decarbonize through this forward-thinking legislation that promotes the production and use of biodiesel, a homegrown fuel from homegrown feedstocks.”

The proposal was introduced by Sen. Tom Brandt of Plymouth and amended to LB 727 which was shepherded through Nebraska’s unicameral legislature by Sen. Lou Ann Linehan of Elkhorn. The biodiesel proposal received overwhelming support from Nebraska’s agriculture industry, biodiesel producers and fuel marketers. The legislation ultimately passed unanimously by the Nebraska Senate.

“This legislation recognizes the impact biodiesel has on the demand for soybean oil,” said Courtney Lawrenson, Clean Fuels Alliance America Governing Board Member and AGP Vice President of Oils and Energy. “AGP has long recognized the steady growth of the soybean processing industry with plans to expand feedstock production capacity in David City and applauds lawmakers for solidifying Nebraska’s leadership role in the industry.”

Nebraska is a leader in soybean production – among the top six soybean producing states. In 2022, the biodiesel industry in Nebraska supported an estimated $322 million worth of overall value to Nebraska soybeans. For a Nebraska farmer with 500 acres, the biodiesel and renewable diesel industry supports about $28,400 to their bottom line.

“Passing the Biodiesel Tax Credit Act is a win for Nebraska producers and consumers,” said Lori Luebbe, Executive Director for the Nebraska Soybean Association. “It reinforces the commitment to making renewable fuels an integral part of our state’s energy portfolio. We appreciate the support of Gov. Jim Pillen, Sen. Tom Brandt, and members of the legislature for ensuring biodiesel is a part of Nebraska’s clean energy solution.”

Overall, the Nebraska biodiesel industry supports $833 million in economic activity and close to 5,900 jobs, many of which are in rural parts of the state.

“We were thrilled to work with our member associations including the Nebraska Soybean Association, AGP and the other organizations who helped build a strong coalition advocating for this legislation while making biodiesel a priority in Nebraska,” said Jeff Earl, Director of State Regulatory Affairs for Clean Fuels.

Nebraska joins the ranks of Illinois, Iowa and Missouri as states that have recently passed legislation supporting the sale and production of biodiesel. These efforts will help grow the biodiesel market in the Midwest by over 300 million gallons.

The post Nebraska Governor Signs Bill Promoting Use of Biodiesel appeared first on Clean Fuels Alliance America.

“The biodiesel industry is an important partner for farmers and entrepreneurs in Missouri and across the Midwest,” Governor Parson said. “We are proud to support this industry that helps create good-paying jobs while ensuring our nation benefits from homegrown fuels that provide energy security and environmental benefits.”

HB 3, recently passed by the Missouri legislature during a special session called by Governor Parson to focus on extending agriculture incentives, provides a $0.02 per gallon retail incentive for B5 to B10 and a $0.05 per gallon retail incentive for B11+ sold at Missouri fuel retailer locations. The bill also establishes a $0.02 per gallon incentive for biodiesel produced in the state.  The Legislature provided a total of $20 million to fund the program.

The legislation was spearheaded and guided through the legislative process by the Missouri Soybean Association partnering with Clean Fuels Alliance America and several of its member companies.  HB 3 was sponsored by Rep. Brad Pollitt (R-Sedalia) and carried in the Missouri Senate by Sen. Jason Bean (Peach Orchard). More information on the legislation can be found here.

“We congratulate Missouri on this significant legislation and thank Governor Parson for helping to strengthen the biofuels corridor throughout the Midwest,” Clean Fuels CEO Donnell Rehagen said. “Missouri joins the ranks of Iowa, Illinois, Minnesota, and others with some of the most forward-thinking legislation that values the production and use of biodiesel. It is our nation’s best option here-and-now to decarbonize heavy-duty transportation.”

“Supporting biodiesel also helps lower fuel prices,” Clean Fuels Director of State Regulatory Affairs Jeff Earl said. “Recently, the World Agricultural Economic and Environmental Services released a study showing that availability of biodiesel boosts the fuel supply and consequently reduces the price of diesel at the pump by 4% on an average annual basis. This equates to more than 20 cents per gallon savings to consumers and the domestic supply chain at today’s prices.”

Missouri’s biodiesel industry adds around $266 million in value to the state’s soybean crop. Missouri is number three in the country in biodiesel production with seven biodiesel plants employing over 3,200 Missourians. In total, the Missouri biodiesel industry adds a total economic impact of over $1.7 billion to the state and supports over $191 million in Missouri household income.

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Among other things, the bill increases a Biodiesel Production Tax Credit from 2 to 4 cents per gallon while updating the state’s Renewable Fuel Infrastructure Program to increase access to higher blends of biofuels. The legislation maintains a Biodiesel Fuel Tax Differential, but applies it to blends of 20% biodiesel (B20) rather than B11. It extends current fuel retailer tax credits for B11 and higher, while introducing new credits for higher blends like B20 (7 cpg) and even B30 (10 cpg) – a national first.

“We congratulate Iowa on this significant legislation, helping to strengthen the biofuels corridor throughout the Midwest,” Clean Fuels CEO Donnell Rehagen said. “Iowa joins the ranks of Illinois, Minnesota and others with some of the most forwarding-thinking legislation that values the production and use of biodiesel. Along with renewable diesel, it is our nation’s best option here-and-now to decarbonize the heavy-duty transportation and home heating oil sectors.” 
The governor herself originally proposed the legislation, dubbed the Governor’s Biofuel Access Bill, and made it a top priority for the legislative session. It was guided through the Iowa General Assembly by Sen. Dan Zumbach (R-Ryan), Sen. Waylon Brown (R-Osage) and Rep. Lee Hein (R-Monticello).

“I am proud that my biofuels legislation will lead to the single greatest expansion of biofuels in our state’s history, while providing our industry with consistency in the face of ever-changing federal policy,” Reynolds said.

Iowa produced an estimated 340 million gallons of biodiesel in 2021, making it the top biodiesel-producing state. A study by ABF Economics shows biodiesel supported 6,513 jobs in Iowa in 2021 and contributed $1.2 billion to the state’s Gross Domestic Product.

“We applaud House and Senate leaders, and Governor Reynolds, for making this bill a priority,” said Grant Kimberley, Iowa Biodiesel Board executive director and Iowa Soybean Association sr. director of market development. “In the face of market uncertainty, the expansion of our state’s producer credit offers a new cushion for biodiesel producers that is quite significant. Worldwide uncertainty and fuel price instability also impact consumers. A diverse fuel supply with more low-carbon fuel made in America benefits everyone from soybean farmers to the end consumer.”

Kimberley noted that previous legislation successfully encouraged blends of B11, but that the state has reached a plateau. He said the state is “…eager to move Iowa’s energy transformation onward and upward toward higher blends like B20 and B30.”

The bill will also make E15 ethanol more available statewide, with enhanced infrastructure cost-share opportunities for retailers.

The IBB, ISA and Iowa Renewable Fuels Association championed the effort on the ground, along with Farm Bureau, Iowa Corn and other ag and industry groups. Clean Fuels Alliance America provided valuable regulatory and technical assistance throughout, IBB and ISA said.

The post Iowa Governor Signs Landmark Biofuels Legislation into Law appeared first on Clean Fuels Alliance America.

The legislation was spearheaded and guided through the legislative process by the Illinois Soybean Association (ISA) with support from Clean Fuels Alliance America and several of its member companies, including REG and ADM. Clean Fuels CEO Donnell Rehagen applauded the effort and the collaborative nature of the work by those involved. 

“This law continues to build on the biodiesel leadership that Illinois, through ISA, has demonstrated in the past,” Rehagen said. “This innovative tax exemption program in Illinois, which has been in place since 2003, has drawn hundreds of millions of gallons of biodiesel into the state. This modification, signed by Governor Pritzker today, will expand that demand and solidify Illinois as a leading source and user of better, cleaner biodiesel.” 

Clean Fuels Director of State Governmental Affairs Floyd Vergara added, “I am extremely proud of our team at Clean Fuels for the support they gave to the process. As we watched things unfold around this legislative effort, it was evident the coordination between all of the stakeholders was going to get this bill past all the hurdles. Kudos to ISA staff and board, as well as our Director of State Regulatory Affairs Jeff Earl and Technical Director Scott Fenwick for their hard work that led to this success.” 

Illinois is currently fourth among all states in biodiesel production and third in consumption with 160 million gallons consumed annually. Efforts to pass this legislation were aided by the Trinity Health Benefits Study that included the city of Chicago. In Chicago, the study found that switching to B100 would decrease diesel particular matter-related cancer risks by up to nearly 1,600 cases and result in over 31,000 fewer or lessened asthma attacks per year and save over $677 million per year in avoided health care costs. 

“The successful passage of our biodiesel legislation is a proud accomplishment for the Illinois Soybean Growers (ISG) and the 43,000 soybean producers in our state,” said Illinois Soybean Association Chairman, Steve Pitstick. “This hard-won victory is the result of ISG’s unrelenting collaboration with bill sponsors, numerous partners across agriculture, biofuels producers, transportation stakeholders and clean air advocates, who worked together to present a viable and immediate solution to combat carbon emissions in the transportation sector.”

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