We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Privacy Terms and Cookie Policy
Shining Light on Farm & Food Policy for 20 Years.
Thursday, December 19, 2024
China is ending an export tax rebate for used cooking oil, a common feedstock for renewable diesel, in a move analysts say could spur higher prices and prompt U.S. biofuel producers to explore other oil sources.
Economists at the University of Illinois and USDA’s Economic Research Service are rolling back their estimates of growth in the renewable diesel industry, reflecting lower-than-expected demand for the biofuel.
A bipartisan group of lawmakers are proposing to extend the new 45Z tax credit for low-carbon biofuels for 10 years but restrict the incentive to products derived from domestic feedstocks, such as vegetable oils and corn ethanol.
Banning the use of foreign biofuel feedstocks such as used cooking oil for a new tax credit could result in retaliation against U.S. farm exports, Agriculture Secretary Tom Vilsack said Tuesday.
The California Air Resources Board’s proposed restrictions on biofuel feedstocks, including a limit on soybean oil usage and new sustainability certification requirements, will ultimately backfire on the state’s consumers, according to industry groups.
The California Air Resources Board is proposing to cap the amount of renewable diesel made from soybean or canola oil that would qualify for the state’s low carbon fuel standard.
Producers of biodiesel and renewable diesel who say federal biofuel mandates have not been enough to expand their markets sufficiently face a new challenge at the end of the year — the expiration of a $1-a-gallon tax subsidy that has helped maintain the industry for several years.
The Environmental Protection Agency says it likely won’t finalize the biofuel usage mandates for 2026 until the end of next year, which is discouraging news for a sector that blames the existing renewable volume obligations for the collapse in credit prices that has hammered many producers.
The renewable diesel boom driven by a slate of federal and state policies has brought with it a surge in demand for imports of animal fats and vegetable oils to be used as feedstocks that could continue growing in 2025 as tax credits shift to incentivize in-country production of the fuel.
A policy-driven boom in U.S. renewable diesel demand that’s been underpinning much of the farm economy is showing signs of slowing as production exceeds the government’s usage mandates, but industry officials hope a new tax credit and a big new potential market in Canada will help put some sizzle back in the market.
