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House passes biodiesel tax credits extension, but Senate delays

The US House of Representatives passed legislation on Friday to extend tax credits for biodiesel and renewable diesel for a year up to December, 2010.

The House passed HR 4213 by a 215 to 204 margin.

However, the US Senate delayed scrutiny of the American Jobs and Closing Tax Loopholes Act of 2010 until after the Memorial Day recess.

The Senate will not now be in a position to consider the legislation before the week of June 7, although U.S. Senate Majority Leader Harry Reid (D-NV) has indicated his intention to consider the legislation that week.

House

Congressman Leonard Boswell (left) and Senator Chuck Grassley have been working to get the biodiesel tax credit extension through Congress

House Resolution 4213 seeks to retroactively extend the dollar-per-gallon production tax credit for biodiesel and diesel made from biomass, which lapsed at the end of 2009 from the lapse date until the end of 2010.

It also aims to extend the 10 cents-per-gallon credit for small biodiesel producers.

The measures would cost around $868 million over 10 years.

The Resolution also proposed extensions to credits for biomass power projects, heavy hybrid vehicles and alternative fuels for vehicles including fuels made from biomass and biogas.

Congressman Leonard Boswell (D-Iowa), who worked with House Ways and Means Committee Chairman Sandy Levin to secure a House vote on the credit before Memorial Day, said on Friday that the measure would restore renewable energy jobs that have been shed since the credit expired last year.

He said: “Not only do Iowa’s workers, small businesses, and communities benefit from a strong renewable energy industry, but the country as a whole does as we reduce our dependence on unfriendly, foreign oil.”

Senate

Iowa’s Senator, Chuck Grassley, attempted to secure a hearing for the legislation in the Senate on Friday, but was rebuffed.

He insisted to his Senate colleagues that it was a “simple and non-controversial” tax extension, that would reinstate more than 20,000 jobs nationwide.

But, after his bid failed, Sen Grassley commented: “I’ll continue to push to extend the biodiesel tax credit as soon as possible when the Senate is back in session, and I’ll keep trying until this tax credit is reinstated.”

I’ll continue to push to extend the biodiesel tax credit as soon as possible when the Senate is back in session” - Sen Chuck Grassley

The National Biodiesel Board, which represents biodiesel producers in the US, said in a statement on Friday: “The biodiesel tax incentive has helped achieve the desired goal of increasing the domestic production and use of biodiesel, and in turn has helped the U.S. realize the energy security, economic and environmental benefits associated with displacing petroleum with domestically produced renewable fuels.

“These benefits, however, will be lost if Congress does not act in a timely manner to address the immediate issue facing the industry and retroactively extend the biodiesel tax incentive,” warned the NBB.