As the U.S. government shutdown looks to head into another day, AgriTalk host, Chip Flory, talked about its impact on the potential tax incentive for biodiesel that’s waiting in the wings.
“Are we going to get that extension for the incentive?” Flory asked guest, Donnell Rehagen, CEO of the National Biodiesel Board (NBB).
“We hope so,” Rehagen responded. “We’ve been working on this for over a year now, but we need Congress to get their heads together on funding so there’s a mechanism for that tax extension to be considered.”
Rehagen told Flory that talks have been on-going “across the aisle” between Democrats and Republicans, but that things are in a holding pattern now.
The good news is there is significant demand growth for biodiesel in the U.S. and abroad, with approximately 7 billion pounds of soybean meal expected to go into biodiesel production this year. A key component contributing to the growth is the Renewable Fuel Standard.
“That law has been in place since 2007, and it has done exactly what it was designed to do, which was to grow the demand of renewable fuels, with biodiesel being one of them,” Rehagen says.
During their discussion, Flory referenced a recent U.S. government report that notes biodiesel helps reduce greenhouse gas emissions by up to 72% and fossil fuel use by 80%. Listen here for more of their conversation and Rehagen’s thoughts on biodiesel market growth here and abroad.