By JAMIE SEARS RAWLINGS

Kentucky Correspondent

WASHINGTON, D.C. — In a letter sent on Dec. 10 to Congressional leadership, nearly 60 organizations joined the National Biodiesel Board (NBB) to urge support for legislation proposed by Rep. Kevin Brady (R-Texas) that would, in part, extend the biodiesel and renewable diesel tax incentive for seven years.

Signed by the NBB, the American Soybean Assoc. (ASA), the U.S. Canola Assoc., Tennessee Soybean Promotion Board, Indiana Soybean Alliance and the Ohio Soybean Assoc., among others, the letter stresses that “tens of thousands of American workers and manufacturers – as well as the millions of Americans who benefit from cleaner air and water – are depending on you to provide our industry the certainty we need to secure investments and continue growing over the next several years.”

According to Paul Winters, director of public affairs and federal communications for the NBB, the letter came together over a week and had more signatories than any previous communication the board has disseminated about a legislative issue.

“It represents broad agreement by the industry that this seven-year deal is very beneficial and widely supported by the industry,” he explained.

Currently the industry is operating without a biodiesel and renewable diesel tax incentive after its expiration in February 2018. Since its inception in 2006, the tax credit has bounced on and off, being granted extensions for one or two years at a time – a method that has created, industry officials say, an uncertainty that has hurt its intent.

“It really hasn’t been stable enough to do what it was intended to do, which was to drive investment and push growth in the biodiesel industry,” Winters said. “The industry just hasn’t had enough certainty in the tax credit to make forward looking plans and make those investments that are necessary.”

A seven-year extension, they say, is the answer to that. “The biggest thing is that people hate uncertainty – Wall Street hates it, farmers hate it, everybody hates uncertainty,” said Robert Shaffer, a fourth-generation farmer from central Illinois who holds board seats on both the ASA and the NBB.

“This would actually give them certainty on what they can plan for as far as expansions, so they can go get capital investment, so they can have more employees, more jobs and more taxes for the economy.”

The letter added: “We believe that a multiyear extension of the tax incentive would help the biodiesel industry achieve substantial growth over the next several years, creating significant new employment opportunities, an important market for agricultural products and renewable feedstocks, as well as opportunities for rural economic growth.”

In the Brady proposition, introduced in late November, the tax credit would remain steady at its current $1 per gallon for four years. After that, the credit would begin a phase-down to gradually reduce to 33 cents per gallon by 2024 and then be allowed to expire.

Winters said the deal, he has been told by Congressional champions, is the best the industry can expect. Despite the phase-down, he believes the multiyear extension will be enough to further buoy the industry’s growth.

According to the NBB press release that accompanied the letter, “the U.S. biodiesel and renewable diesel market has grown from about 100 million gallons in 2005, when the incentive was first implemented, to nearly 2.9 billion gallons in 2016.”

For now, though, the industry waits. Winters hoped the matter would come to a vote before Christmas adjournment, but gridlock continued and the tax package was pushed into the new year. Now under control of the Democrats, it is left to the House to determine what, if any, changes they will make before pushing the proposal forward.

Still, Winters remains hopeful. “We believe this proposal for the extension of the biodiesel tax incentive is broadly supported and agreed on by both House and Senate,” he said. “It’s certainly not controversial between Republicans and Democrats.

“It seems to be caught up in controversy between the various parties and the White House, but we certainly hope that the gridlock and the logjam here in Washington will break and that Congress will finish unfinished business. I think they’ll eventually get the business before them done.”