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NBB Applauds House Ag Committee Proposal for Biodiesel Infrastructure Grants

Sep 9, 2021, 12:44 PM
Grant program would expand consumer access to biodiesel and achieve carbon reductions at low cost

WASHINGTON, DC – Today, the National Biodiesel Board (NBB) applauded House Agriculture Committee Chairman Rep. David Scott (D-GA) and Senate Agriculture Chairwoman Sen. Debbie Stabenow (D-MI) for including in their draft section of the Build Back Better Act a $1-billion grant program to expand infrastructure and increase availability of higher blends of biodiesel. NBB specifically thanked Reps. Cindy Axne (D-IA), Rodney Davis (R-IL), Angie Craig (D-MN), and Dusty Johnson (R-SD) as well as Sens. Amy Klobuchar (D-MN) and Joni Ernst (R-IA) for championing bipartisan legislation in both House and Senate.

“Biodiesel is a better, cleaner fuel that reduces carbon emissions by 74% on average and cuts criteria pollutant emissions,” said Kurt Kovarik, NBB’s Vice President of Federal Affairs. “Expanding consumer access to low-carbon biodiesel and Bioheat® fuel through infrastructure grants can generate immediate health care benefits and savings for many communities at a very low-cost.”

The grant program would expand and improve the successful implementation of the USDA’s Higher Blends Infrastructure Incentive Program. To date, USDA has provided $23.2 million in grants to share costs with 24 projects that support more than 900 million gallons of biodiesel. The increased use of biodiesel through those projects will cut carbon emissions by more than 8.5 million metric tons, at a cost of less than $2.75 per ton.

Kovarik continued, “On behalf of NBB’s members, I want to thank Representative Cindy Axne, Senator Amy Klobuchar and others for sponsoring legislation to enable USDA to continue to offer these cost-sharing grants and for ensuring its inclusion in the Build Back Better Act. We appreciate their ongoing support as we work to build markets for biodiesel, renewable diesel and other clean, low-carbon renewable fuels.”

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel and renewable diesel are better, cleaner fuels that are available now for use in existing diesel engines without modification. NBB is the U.S. trade association representing the entire biodiesel and renewable diesel value chain, including producers, feedstock suppliers, and fuel distributors.

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