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The EPA’s 2018 RFS volume requirements set biomass-based diesel at 2.43 billion gallons for 2020 and total Advanced Biofuels at 4.92 for 2019. This represents modest growth from previous year requirements.
Biodiesel provides multiple energy, economic, and environmental benefits:
Under the Bipartisan Budget Act of 2018, the biodiesel tax credit was extended for one year, retroactively for 2017, but not for 2018 and beyond. Extension of the tax incentive is important to the industry’s continued growth. ASA supports a long-term extension of the biodiesel tax incentive.
Biodiesel production benefits soybean farmers and the livestock industry. Approximately half of U.S. biodiesel is produced from soybean oil that is a by-product of soybean production, which is driven by demand for protein meal (soybeans are 80% meal and 20% oil). In addition, rendered animal fat is a significant feedstock for biodiesel and renewable diesel, further benefiting livestock industry partners.
The biodiesel tax incentive has encouraged significant investment to expand the domestic biodiesel industry and help it become price competitive with petroleum diesel. Biomass-based diesel is the most commercially-available advanced biofuel, and it provides significant economic, energy security, environmental and health benefits.
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