Supporters of the bill say restoring the biodiesel credit would help reduce diesel prices in many regions. Lower diesel costs would benefit trucking companies, fuel retailers, and consumers while easing pressure on farmers who rely on strong biofuel demand for crops such as soybeans.
Industry leaders noted that the expiration of the biodiesel tax credit at the end of 2024 led to higher diesel prices and a sharp decline in biodiesel use. Biodiesel consumption dropped significantly in 2025, placing strain on biofuel producers and the broader agricultural value chain.
The bill has received strong backing from organizations representing fuel retailers, truck stops, convenience stores, heating fuel providers, and biofuel refiners. These groups say the previous biodiesel credit was simple, transparent, and effective in encouraging fuel blending and production.
Supporters also raised concerns about the Clean Fuel Production Credit, stating that its complexity and lack of finalized regulations have created uncertainty for fuel markets. Without clear guidance, fuel retailers have struggled to plan investments or increase biodiesel blending.
"SABR applauds Sen. Blackburn for her leadership in introducing the BTC extension in the Senate," said SABR CEO Joe Jobe. "If passed by Congress, this policy would provide desperately needed relief to the biodiesel industry and all of the other industries that biodiesel benefits in the value chain. This includes farmers who are experiencing an economic crisis in agriculture right now."
"Reliable and affordable supplies of biodiesel and renewable diesel are a top priority for America's heating oil dealers, who serve nearly 5 million homes across the country. NEFI is therefore proud to endorse the Consumer Relief and Opportunities for Producers Act," said NEFI President and CEO Jim Collura. "Enactment of this bill would support our mostly small family businesses transition to renewable liquid heating fuels, which offer a lower cost and more immediate solution to reduce building emissions and contribute to regional energy security and diversity."
When the biodiesel tax credit was active, the industry expanded from about 100 million gallons in 2005 to more than 2 billion gallons by 2024. Supporters believe restoring the credit would provide critical relief as the industry awaits clarity on long-term biofuel policy.
The legislation is co-sponsored by another U.S. senator and is viewed as a short-term solution to support farmers, fuel suppliers, and consumers while strengthening domestic energy markets.
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