Soy Biodiesel

Soy Biodiesel is made from soybeans, a renewable resource grown in Ohio, and is Ohio's leading alternative fuel.   Soy biodiesel can be used in any diesel engine with no modifications.  It also burns cleaner, provides better engine lubricity and reduces dependence on foreign oil.

For the past decade, the Ohio Soybean Council and the soybean checkoff have helped support the research and development of soy biodiesel in an effort to increase Ohio soybean farmers' bottom line.

 

TAX INCENTIVE UPDATE

August 6, 2010

Kerry Introduces Tax Package with Extension of Biodiesel Tax Credit

 

Sen. John Kerry (D-Mass.) introduced a clean energy tax incentive package yesterday that would retroactively extend the $1/gal biodiesel tax incentive through the end of 2012 among various other components.

S. 3738, the Clean Energy Technology Leadership Act of 2010, aims to provide tax incentives for clean energy manufacturing, renewable energy and conservation. The bill was introduced on the last day of the Senate session, before the chamber closed for the August recess.

"This bill is not intended to serve as a substitute for comprehensive energy and climate legislation," Kerry said on the Senate floor during the bill's introduction. He was a main sponsor of climate change legislation that continues to struggle to obtain the necessary 60 votes for passage.

Senate Majority Leader Harry Reid (D-Nev.) ended up pulling Kerry's climate change bill from the Senate schedule to continue working towards passage, and earlier this week, Reid pulled a scaled-down energy bill until after the August recess for the same reason.

"However, it does provide a near-term opportunity to support the development and deployment of clean energy technologies," Kerry continued. "Congress must continue working on legislation that will put us on a course to substantially reduce greenhouse gas emissions, but the events of the last several weeks have made it clear that there is no bipartisan support for a strong energy and climate bill. In the interim, we should act on areas where there is potential agreement. The Clean Energy Technology Leadership Act is broad energy tax legislation that focuses on tax incentives to encourage renewable energy and conservation. This legislation would extend and improve existing provisions in the tax code and provides some targeted new incentives," he continued.

Among the bill's provisions, Kerry's bill would retroactively extend the $1/gal biodiesel tax credit--which expired at the end of last year--through Dec. 31, 2012. Several other bills have extended the biodiesel tax credit, but none have been passed into law so far.

The U.S. biodiesel industry has been operating at reduced rates since its tax incentive expired at the end of 2009, and the National Biodiesel Board has been actively pushing for its extension in a number of legislative vehicles.

Kerry's bill would also allow algae-based fuels to qualify for the $1.01/gal cellulosic biofuel tax credit.  Non-biofuel-related provisions in the bill included providing additional funding for the advanced energy manufacturing credit and uncapping the credit for solar energy property, fuel cell power plans and advanced energy storage systems, including batteries for advanced vehicles; extending the credit for domestic manufacturers of energy appliances; providing an additional $3.5 billion for clean renewable energy bonds; and extending the research and development tax credit retroactively for 2010 and through 2012 and providing an additional 10% credit for qualified advanced energy research expenditures.

S. 3738 was referred to the Senate Finance Committee.


Ways and Means Committee Releases Draft Green Jobs Legislation Bill Would Reinstate Biodiesel Tax Incentive for 2011
Assume Retroactive Extension for 2010

 

The U.S. House Committee on Ways and Means, the U.S. House committee with sole jurisdiction over matters relating to taxation, yesterday released a draft of the Domestic Manufacturing and Energy Jobs Act of 2010. Please refer to the links below to review:

Among its provisions, the legislation would reinstate the biodiesel tax incentive for 2011. The summary provided by the U.S. House Committee on Ways and Means also indicates that the legislation would incorporate the 2010 extension if it has not been enacted by the time the Domestic Manufacturing and Energy Jobs Act of 2010 is considered. Specifically, the summary states:

“Biodiesel and renewable diesel. The proposal would reinstate for 2011 the per gallon tax credits and outlay payments for biodiesel and renewable diesel. The extension of these tax credits and outlay payments for 2010 has previously passed both the House of Representatives and the Senate at different times but has not become law. The extension for 2010 would be incorporated into this legislation if that extension has not been enacted by the time this legislation is considered. This proposal is estimated to cost $1.108 billion over 10 years.”

Neither the U.S. House Committee on Ways and Means nor the full U.S. House are expected to consider this legislation prior to the August recess, which for the U.S. House is scheduled to begin the week of August 2, 2010. 

  

 

Resources

Fact Sheets:
Ohio and U.S. Statistics:
 
  • There are over 100 soy biodiesel distributors and 30 soy biodiesel retailers in Ohio.
  • Ohio has the capacity to produce over 60 million gallons per year.
  • There are more than 3,270 fuel suppliers and retailers nationwide that offer biodiesel.  This is up from 450 in 2002.
  • Expansion of the U.S. biodiesel industry as estimated will displace 242 million barrels of crude oil between 2006 and 2015.  This means approximately $13.6 billion will remain in the U.S. that would otherwise be spent on foreign oil.
  • Soy biodiesel is the only alternative fuel to have fully completed the rigorous Health Effects testing requirements of the Clean Air Act.
  • More than 20 original equipment manufacturers approve of soy biodiesel use in their engines.  Examples include: Case IH, Chrysler, Cummins, Ford, John Deere and New Holland.

 
                      
 
Quality
 
While the availability and use of soy biodiesel has increased over the past few years, so has the industry's committment to establishing and maintaining the highest quality standards for this product.  The Ohio Soybean Council supports the national biodiesel quality program, created by the National Biodiesel Board, and also encourages Ohio producers to volunteer for the Ohio Soy Biodiesel Quality Testing Program.
 

 
BQ-9000 Program
 
Established in by the National Biodiesel Board in 2000, the BQ-9000 certification program ensures that processors and marketers with this accreditation produce and deliver a product that meets the highest standards for biodiesel quality and performance.
 
The Accredited Producer cerfication is for companies that produce biodiesel fuel to the ASTM D 6751 standard, ensuring that a production company is using a system for monitoring the quality of their biodiesel including sampling, testing, storage, retained samples and shipping.
 
The Certified Marketer certification is for distribution companies who sell biodiesel and biodiesel blends, an important designation because proper handling of biodiesel is critical to fuel quality.

 

 

 
 
 
 
 
 
 
 
 
 
 
Ohio Soy Biodiesel Quality Testing Program
 
The Ohio Soybean Council instituted, in partnership with the Ohio Department of Agriculture, a voluntary Quality Testing Program for soy biodiesel producers in the state.
 
Soy biodiesel producers who volunteer for the program will have their fuel tested by ODA for compliance with the ASTM D 6751 specification.

 
National Biodiesel Board
 
The National Biodieseal Board (NBB) is the trade association representing the biodiesel industry as the coordinating body for research and development in the US.  It was founded in 1992 by state soybean commodity groups, who were funding biodiesel research and development programs. Since that time, NBB has developed into a comprehensive industry association, which coordinates and interacts with a broad range of cooperators including industry, government, and academia.
 
NBB's membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel suppliers, fuel marketers and distributors, and technology providers.  To learn more, visit www.biodiesel.org .