Thursday, February 27, 2014
Grassely Bill to Expand Bio Diesel Production
On June 24th, 2011 Senator Chuck Grassely of Iowa and Maria Cantwell of Washington put forward legislation to simplify and extend the current tax incentives for the production of domestically made Bio-Diesel. This will help producers to more easily understand how to acquire capital and the ability to expand their production. This bipartisan bill is designed to help displace imported petroleum diesel for a lower carbon emitting bio diesel.
The bill is designed to offer predictability to investors as well as producers so they can more confidently produce and invest more securely in the expanding alternate fuel market. The writers of the bill believe that raising fuel prices are holding the economy and this allows for more American producers to allow for a homegrown alternative to petroleum.
By 2015 analysts project that domestic Bio-Diesel production will replace 1.9 Billion gallons of imported diesel and create 74,000 domestic jobs to help strengthen the US Economy. This bill will increase incentives and also make it harder for petroleum producers to take advantage of lax standards to qualify for the tax credit by only mixing small amounts of bio-diesel into their blends.
Bills like this will help strengthen the quality of Bio-Diesel in the United States and hopefully engine designers will respond with engines designed to run in higher and higer blends of Bio-Diesel until ultimately they are running on a B100 blend produced domestically to help increase national security and national energy dependence.
[Source: Wallace Farmer June 24, 2011]
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