Introducing Legislation to Amend the Internal Revenue Code of 1986 to Modify the Incentives for the Production of Biodiesel

Floor Speech

Ms. HIRONO. Mr. Speaker, I rise today to introduce legislation that extends to the end of 2016 the $1.00 per gallon biodiesel tax credit and the additional $0.10 per gallon tax credit to small agri-biodiesel producers. Extending the biodiesel tax credit for another five years will provide the certainty and stability in the marketplace that is needed to encourage companies to invest in the development and production of biodiesel.

Companies throughout the United States have emerged as pioneers in this growing renewable energy sector. The founder of Hawaii's Pacific Biodiesel observed that large quantities of used cooking oil were going directly to a local landfill and proposed converting this restaurant waste into biodiesel in order to fuel the landfill's generators. This is but one example of how an innovative idea can turn a problem into a solution. By producing a more sustainable and environmentally friendly fuel, companies like this one have helped Hawaii--the most oil-dependent state in the country--become more energy self-sufficient. In addition, producers like these not only diversify our domestic energy portfolio but also boost our local economies by creating jobs for biodiesel production and distribution as well as for feedstock farming and collection.

President Obama noted in his recent State of the Union speech that he supports incentives to invest in and develop the biofuels industry in order to break our country's dependence on oil. This legislation takes us a step forward to achieving that goal.

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