Extension of the biodiesel tax credit through 2022 is “a big win for the environment, for agriculture, and for U.S. motorists,” REG President and CEO CJ Warner said.
On Dec. 20, President Trump signed legislation including a retroactive reinstatement and extension of the $1-per-gallon biodiesel tax credit (BTC) from Jan. 1, 2018, through Dec. 31, 2022.
“For too long the biomass-based diesel industry
has been held back from showing its real potential due to the recurring
uncertainty around the BTC,” Warner said in a Dec. 23 statement that was
included in Let’s Blend, a newsletter published by REG. “Now, thanks to
the work of biodiesel champion lawmakers, we can accelerate our strategy and
further deliver at scale the enormous benefits of biodiesel and renewable
“We are grateful to so many
who made this a reality for the biodiesel industry,” Warner said. “Senator
Chuck Grassley [R-Iowa] is a tireless biodiesel champion and his intrepid
leadership helped build the industry from the beginning. Senator Maria
Cantwell’s years of persistence on the industry’s behalf as a fighter for lower
carbon fuels was crucial. [Cantwell, a Democrat, represents Washington State.] Senator
Joni Ernst [R-Iowa] played a key role in securing President Trump’s support for
the BTC and we sincerely thank all of these pivotal leaders. Thank you to all
of the biodiesel advocates in the House, including Iowa members Abby Finkenauer
[D-Iowa] and Cindy Axne [D-Iowa] and
Washington State [Democratic] Congressman Derek Kilmer.
“As we look to the future with this supportive policy, we are committed to delivering value to our stakeholders, including our customers and shareholders, through a balanced approach to capital allocation focusing on high-quality, high-returning investments, including share and bond repurchases that will strengthen the company and our ability to deliver high-quality, low-carbon fuels. The proceeds from the BTC provide tremendous, predictable resources to support achievement of these goals.”