Biofuel trade associations urge Congress to give fair renewable energy tax credits

Six biofuel trade associations sent letters on Tuesday to Congress urging Washington to extend multiyear advanced biofuel tax credits, saying that the U.S. cannot prioritize environmental protection if unfair tax credits are given for fossil fuels.

The associations included the Advanced Biofuels Business Council, the Biotechnology Innovation Organization (BIO), Growth Energy, the Algae Biomass Organization, the National Biodiesel Board and the Renewable Fuels Association. The organizations argued that short-term biofuel incentive programs undermine research and development efforts to support biofuel as a viable clean, cost-effective energy source.

The organizations also critiqued Congress for offering long-term tax credits for fossil fuel companies. Several representatives said that equal incentives should be offered to clean energy providers if the country is serious about decreasing its carbon footprint and encouraging environmental responsibility.

“For several years now, policy uncertainty at the federal level has undercut investment in cellulosic and advanced biofuels even while pioneering companies proved the technology and started up the first commercial-scale production facilities,” Executive VP for BIO’s Industrial and Environmental Section Brent Erickson said. “It will take several more years for companies to plan, finance and build the next wave of advanced biofuel facilities. Stable policy in the form of a multiyear extension of these advanced biofuel tax credits is necessary to help companies secure capital for these projects.”

The associations urged Congress to extend its biofuel tax credit programs until 2018. According to the letters written by the associations, several biofuel tax credit programs are offered through 2018, while others end next year.