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Monday, January 29, 2018

Biofuels Issues See More Talk on Capitol Hill

Congressional contacts continue to signal a biodiesel tax incentive extension is likely, but they discount staffer talk about moving to a producer credit. Senate Finance Chairman Orrin Hatch, R-Utah, would revive the lapsed credit for blenders of biodiesel in a tax-extenders bill. Derek Theurer, an aide to Sen. Bill Cassidy, R-La., said at an event this week that Finance panel members still are considering moving it to a producer credit. But veteran Capitol Hill contacts say the Trump administration already has made its views known in opposition to any such change, and there is not widespread support in Congress.

Meanwhile, Sen. John Barrasso, R-Wyo., a top Renewable Fuel Standard (RFS) foe, continued to push for RFS reforms. "If a refinery goes bankrupt because of a system that the government put in place after the refinery was built, that’s not a system that’s worked. So we need to modernize and modernize this to take into account where we are today with the technology and the vehicles and the amount of fuel being consumed," he told Politico, adding "[Sen. John Cornyn, R-Texas, is] leading the efforts to develop this bipartisan reform bill that all the stakeholders can support and then once that’s introduced the committee is going to give it serious consideration."