Jon Kyl: “The National Biodiesel Board supports your efforts to promote sound energy policy by ensuring that renewable diesel…”

“The National Biodiesel Board supports your efforts to promote sound energy policy by ensuring that renewable diesel produced through petroleum co-processing does not qualify for the $1.00 per gallon renewable diesel excise tax credit. In a time of budget deficits and rising fuel prices due in large part to limited domestic refining capacity, the NBB questions the wisdom of directing tax benefits and limited feedstock-- That is the animal fat-- to subsidize existing oil refining operations at the expense of free-standing producers of biodiesel and renewable diesel. Under your amendment, vegetable oils and animal fats co-processed with petroleum would not qualify for the $1.00 per gallon renewable diesel tax credit, but would continue to qualify for a 50 cents per gallon credit that is provided under current law. The NBB believes that your amendment represents balanced energy policy and is consistent with the goals of the underlying legislation. And so on. We are not eliminating the tax credit. We are not eliminating this other credit. All we are doing is getting back to the original intent, which was not to provide this additional $1 per gallon credit for something that could be done anyway. We want you to go out and invent something new here using biomass for biodiesel, not using something that can already be done.”