Wednesday, January 27, 2010

Teetering Biodiesel Industry Awaits President Obama's Remarks on Job Creation in His State of the Union Address

/PRNewswire/ -- Tonight, President Barack Obama is scheduled to deliver his first State of the Union Address. Though the President is widely expected to highlight a host of new initiatives to create new "green collar" jobs in the speech, the failure of Congress to extend the existing biodiesel tax incentive has placed 23,000 existing jobs that are supported by the domestic biodiesel industry at risk.

Manning Feraci, the National Biodiesel Board's Vice President of Federal Affairs noted, "If Congress and the Administration are serious about creating green jobs, the first immediate step they should take is to extend the biodiesel tax incentive as soon as possible. Expiration of the biodiesel tax incentive on December 31, 2009 has devastated the industry, severely curtailed domestic biodiesel production, and placed 23,000 good-paying jobs in immediate jeopardy. Biodiesel companies have already started shedding employees, and this will continue at an accelerated pace unless Congress and the President act swiftly to reinstate this effective tax incentive."

Biodiesel is a diesel replacement fuel made from agricultural oils, fats and waste greases that meets a specific commercial fuel definition and specification. The fuel significantly reduces harmful emissions including greenhouse gas emissions compared to petroleum diesel fuel. The biodiesel tax incentive is structured in a manner that makes the fuel price competitive with diesel fuel in the marketplace. Thus, absent the tax incentive, biodiesel is significantly more expensive that petroleum diesel fuel. On December 31, 2009, Congress adjourned and allowed the biodiesel tax incentive to expire.

"If Congress and the Administration truly want to protect and promote green job creation, they should act immediately to extend the biodiesel tax incentive," concluded Feraci.

The National Biodiesel Board is the national trade association of the biodiesel industry and is the coordinating body for biodiesel research and development in the U.S. NBB's membership is comprised of state, national, and international feedstock and feedstock processor organizations, biodiesel producers, fuel marketers and distributors, and technology providers.

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