Congress is considering the large budget reconciliation package known as the “Build Back Better Act”. Provisions in the bill extend the $1 per gallon blenders tax credit that both biodiesel and renewable diesel enjoy today and is a key element to help REG bring these low carbon fuels to the market. However, the bill would also grant Sustainable Aviation Fuel (SAF) additional tax incentives that are much more generous than those offered for renewable diesel or biodiesel. Today, most SAF, biodiesel and renewable diesel fuel are derived from the same feedstocks. However, SAF typically has a greater carbon intensity than biodiesel or renewable diesel fuel because more energy is required to produce the fuel.
Additional tax incentives afforded to SAF may likely result in feedstock diversion from biodiesel to SAF which may limit value creation for biodiesel produced REG facilities across the country and also lead to an overall increase in greenhouse gas emissions. Over-incentivization of SAF could result in financial hardship for many of REG’s production facilities in the U.S.
We urge you to contact your members of Congress to ask that all lower carbon biofuels – SAF, biodiesel and renewable diesel – receive equal tax treatment under the Build Back Better Act. We have made the process easy for you. Through our VoterVoice Action Center off to the right, you will find a pre-drafted e-mail that you can send directly to your members of Congress. If you choose, you may also call these offices and we have provided a pre-drafted script for you as well. Participation is by no means required but we urge you all to participate in this grassroots effort to keep fuel flowing from our U.S. production facilities.
Please contact Ezra Finkin, Senior Manager of Corporate Affairs and Development (email@example.com) if you have any questions or concerns.