Key industry organizations, including NATSO, SIGMA, the American Trucking Associations (ATA), the Clean Freight Coalition (CFC), the Energy Marketers of America (EMA), the National Association of Convenience Stores (NACS), the National Energy & Fuels Institute (NEFI), and the Truckload Carriers Association (TCA), are urging Congress to extend the 'Section 40A' Biodiesel Blenders' Tax Credit. This bipartisan $1-per-gallon tax credit is vital for maintaining stability in the biofuel sector and ensuring fuel prices remain affordable.

Fuel retailers, distributors, trucking fleets, and renewable fuel consumers strongly support tax policies that keep fuel costs low. Biodiesel and renewable diesel are widely recognized as cost-effective, cleaner-burning fuels that reduce reliance on foreign energy sources, stabilize domestic markets, and help consumers access competitively priced diesel fuel. These renewable fuels are critical for lowering carbon emissions in the trucking, home heating oil, and rail industries.

The industry coalition warned that the expiration of the Biodiesel Tax Credit at the end of 2024 has already disrupted biofuel supply chains. Numerous biodiesel plants have scaled back operations or ceased production altogether, causing instability in the sector. "Without an extension of the Biodiesel Tax Credit, consumers risk facing unnecessary price hikes for essential goods like food, medicine, and other daily necessities," the coalition wrote in a letter to the House Ways and Means Committee.

Economists predict that inflation may increase by 2.5% in 2025, further threatening economic stability. Restoring the Biodiesel Blenders' Tax Credit is a strategic move Congress can take to counter inflationary pressures and reduce supply chain costs. The credit directly cuts diesel prices for truck drivers, lowering shipping expenses and ultimately reducing costs for consumers.

Since its inception in 2004, the Biodiesel Blenders' Tax Credit has incentivized retailers to invest in infrastructure for low-carbon fuel options, making renewable fuel blends more accessible to the public. The credit has played a pivotal role in expanding the U.S. biodiesel and renewable diesel market, which grew from around 100 million gallons in 2005 to nearly 4 billion gallons in 2023. This growth has significantly contributed to reducing carbon emissions tied to transportation.

By extending the Biodiesel Blenders' Tax Credit, Congress can support fuel industry stability, protect consumers from rising costs, and sustain environmental progress through cleaner energy alternatives. Industry leaders continue to emphasize the importance of this credit in fostering economic growth and ensuring affordable fuel options for all Americans.

NATSO is a trade association that advocates for the U.S. travel plaza and truck stop industry. Established in 1960, NATSO represents the sector on legislative and regulatory issues, serves as a trusted information resource, offers educational programs for its members, hosts an annual convention and trade show, and works to enhance the overall business environment for its members.