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Americas Animal Fats Biodiesel

Legislation proposes repeal of subsidies for animal fat-based biofuels

Texas Representative Randy Weber (R-TX) has introduced legislation which would permanently terminate federal tax credits for animal fat-based production of biofuels.The bill, H.R. 1866, the “Stop Animal Fat Tax Credits Act,” would prevent the renewal of federal tax credits for biodiesel and other renewable diesel produced with animal fat feedstocks such as tallow and choice white grease.

The bill, H.R. 1866, the “Stop Animal Fat Tax Credits Act,” would prevent the renewal of federal tax credits for biodiesel and other renewable diesel produced with animal fat feedstocks such as tallow and choice white grease.

The American Cleaning Institute (ACI) and it’s member companies, of which many include oleochemical producers which are commonly used in the production of soaps and detergents, support Rep. Weber’s bill, believing the legislation should be a part of any tax reform package that Congress looks at during the upcoming year.

“Congressman Weber’s bill would provide much-needed relief to the domestic oleochemical industry,” said Jacob Cassady, Associate Director of Government Affairs for the ACI.

The lobby cites the current market distortion, caused by the biofuel subsidy in question, leading to the diversion of raw materials from use in the manufacturing of cleaning products instead toward the production of biodiesel.

“As a result, animal fats have seen an 116pc increase in cost since 2006, the year the tax credit first became law,” the ACI said in an official statement.

Renewable fuels industry lobby the American Biofuels Association (ABFA) opposes the proposed legislation, believing the passage of such a measure could limit the domestic production of renewable fuels.

“This bill would not allow the use of tallow as a feedstock to reach its higher use purpose, reducing the number of renewable fuels gallons available,” said Michael McAdams, ABFA President.

Anne Steckel, Vice President of Federal Affairs for the National Biodiesel Board (NBB), stood alongside McAdams and the ABFA in opposition of Rep. Weber’s proposed bill, citing the biodiesel tax incentives bipartisan support as evidence of the importance of renewable, American-made fuels to the nation.

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