BIOMASS HUB

Its looking like biodiesel subsidies are starting to gain traction again.  An extension of the $1-a-gallon blenders credit has been attached to the new, $150 billion American Workers, State and Business Relief Act, introduced by Senate Majority Leader Harry Reid (D-NV) and Sen. Max Baucus (D-MT).

The extension incorporates the House approved Tax Extender Act (H.R. 4213), which extends through 2010 energy conservation and production provisions, including the tax credits for biodiesel and renewable diesel used as fuel.  The provisions would apply retroactively to December 31, 2009.  The bill also includes a one-year tax credit extension (from five to six years) for electricity produced from certain open-loop biomass facilities.

The National Biodiesel Board, the industry’s lobby group, says biodiesel production has ground to a halt and more than 29,000 jobs have already been lost across the industry since the tax credit lapsed on December 31, 2009, according to a press release.  The bill is up for floor vote this week, which could mean a return to business for many biodiesel facilities throughout the country soon.

Biomass Intel has covered the biodiesel subsidy story since 2009.  A quick summary is provided below:

In Biodiesel Boondoggle, Biomass Intel explores the debate about biodiesel subsidies versus the RFS2 mandate.

In Biodiesel Subsidy Gets Nixed from Jobs Bill, Biomass Intel discusses the most recent attempt (and failure) to revive the biodiesel tax credit.

In Biodiesel Renews Effort to Revive Tax Credit, Biomass Intel explores the arguments for the biodiesel tax credit.