Costa, Valadao Introduce Biodiesel, Renewable Diesel and Alternative Fuels Extension Act of 2021

(WASHINGTON) – Congressman Jim Costa (CA-16) and Congressman David G. Valadao (CA-21) released the following statement after introducing the Biodiesel, Renewable Diesel and Alternative Fuels Extension Act of 2021:

"Renewable fuels play an important role in our efforts to reduce greenhouse gas emissions and mitigate the impacts of climate change," said Costa. "By extending these tax incentives, we can provide critical economic relief for producers, fuel retailers, truckers and consumers as they plan and adjust to future regulations. As we move toward a greener tomorrow, we must use all the innovative solutions at our disposal."

"I am pleased to introduce legislation to extend tax credits for the production of biodiesel and alternative fuel mixtures," said Congressman Valadao. "Renewable fuels are an important component of our transportation fuel supply, achieving immediate reductions in transportation sector greenhouse gas emissions. While we propose to phase out the credits over time, they are still critically needed today to make the production of these renewable fuels economically viable and to encourage continued innovation. Conventional refineries in my district are producing low-carbon renewable diesel from biomass and blending biodiesel in their diesel fuel. These companies provide people in my district with good jobs, and they play a critical role in ensuring that our families, truckers, farmers, and military bases have the supply of CA-compliant fuels that we need to power our economy."

The bill would amend the Internal Revenue Code to extend and modify the tax credits for biodiesel, renewable diesel and alternative fuels. Beginning in 2023, this bill would phase down the credits by reducing the credits by specified amounts.

Bill text can be found here.