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Fuel Retailers Join Energy, Transportation and Agriculture Coalition Urging Congress to Enact Short-Term Tax Package

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Nov 13, 2024, 2:48 PM ET

ALEXANDRIA, Va., Nov. 13, 2024 /PRNewswire/ -- NATSO, representing America's truck stops and travel centers, SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS) joined 36 organizations representing a broad spectrum of energy and transportation providers, consumers and agriculture in urging Congress to enact a short-term tax package to ensure energy and agriculture market stability until lawmakers can debate long-term tax policy in the 119^th Congress.

American consumers face substantial rising energy and fuel prices amid significant market uncertainty stemming from the expiration of longstanding energy tax policies and a lack of regulatory guidance for new tax policies scheduled to take effect in 2025, the organizations said in a letter addressed to the U.S. House of Representatives and Senate.

A short-term energy package that incorporates several proposals to extend fuel tax credits for an array of alternative fuels, including the biodiesel blenders' tax credit, can incentivize a technology-neutral approach to decarbonization and the nation's energy tax structure while giving industry time to understand and adjust to new tax structures.

"Unless something is done soon, existing credits will expire without any meaningful guidance from Treasury regarding the Clean Fuel Production Credit," said NATSO and SIGMA Executive Vice President of Government Affairs David Fialkov. "This is prompting the biodiesel industry to effectively shut down. Emissions will increase, fuel prices will increase, and agriculture jobs will be lost. We are well past the point where guidance can quickly fix this dire situation. Industry needs a real solution right now. We implore Congress to enact a short-term tax package that extends the longstanding biodiesel blenders' tax credit to serve as a bridge until longer-term tax policy is front and center for the new Administration and Congress."

"The biodiesel blenders' tax credit is a key policy that helps keep diesel prices down and reduces carbon emissions," said Doug Kantor, NACS General Counsel. "We should not sacrifice those goals simply because guidance on a new tax credit is not ready. It's time for an extension that will allow for an orderly transition to a new tax policy next year and avoid chaos at the end of this year."

In 2025, federal lawmakers will confront major tax policy expirations, the majority of which stem from the 2022 Inflation Reduction Act. Until federal policymakers and tax-writers consider broad, holistic reforms and extensions in the tax system, the combination will create severe economic headwinds for businesses and consumers. Absent Congressional action and the certainty provided by a bridge package, American consumers would face rising energy and fuel prices, and fuel retailers would face regulatory, legal, and tax filing uncertainty.

Lawmakers in both parties have proposed numerous pieces of legislation that would positively impact the scheduled transition and prevent unnecessary disruption in the fuel and energy markets. Bipartisan legislation H.R. 9060 introduced by Representatives Mike Carey (R-OH), Annie Kuster (D-NH) and Claudia Tenney (R-N.Y.) would extend the biodiesel blenders' tax credit for one year. Sen. Chuck Grassley (R-Iowa) voiced support for a tax package that includes the biodiesel tax credit and 20 tax credits that "must be passed."

The Inflation Reduction Act, which was signed into law by President Biden after passing Congress on a purely partisan basis, created a new Clean Fuel Production tax credit known as "45Z." Despite repeated requests, the industry has not received guidance from the Biden Administration regarding what the value of that credit will be for different fuels. This uncertainty, combined with the scheduled expiration of the biodiesel blenders' credit at the end of 2024 is hurting biodiesel producers, fuel retailers, trucking companies, and the entire soy complex.

Biodiesel and renewable diesel have historically been the most widely used biofuels in commercial trucking and remain the most viable option for reducing carbon emissions from the nation's trucking, home heating oil, and rail industries in the near term. The biodiesel blenders' tax credit directly lowers the cost of diesel fuel for truck drivers, which in turn reduces shipping costs and helps lower the prices consumers pay for goods transported by truck.

Extending this tax credit would ensure that motor carriers can continue to cut carbon emissions within existing fleets while also keeping fuel prices and consumer costs down. The biodiesel blenders' tax credit has been instrumental in developing a strong renewable diesel industry in the United States, driving significant growth in production. The U.S. biodiesel and renewable diesel market expanded from approximately 100 million gallons in 2005 to around 4 billion gallons in 2023, all while contributing to lower transportation-related carbon emissions.

About NATSO, SIGMA, and NACS

NATSO is the trade association representing America's travel plaza and truck stop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel plaza and truck stop industry; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. Contact: Tiffany Wlazlowski Neuman, Vice President, Public Affairs. 202-365-9459

SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. Representing a diverse membership of approximately 250 independent chain retailers and marketers of motor fuel, the association serves to further the interests of both the branded and unbranded segment of the industry while providing information and services to members. For more information visit SIGMA.org.

NACS advances the role of convenience stores as positive economic, social and philanthropic contributors to the communities they serve. The U.S. convenience store industry, with more than 153,000 stores nationwide selling fuel, food and merchandise, serves 165 million customers daily—half of the U.S. population—and has sales that are 10.8% of total U.S. retail and foodservice sales. NACS has 1,300 retailer and 1,600 supplier members from more than 50 countries.

List of Signatories:

Advanced Biofuels Association
Airlines for America
American Biogas Council
American Public Gas Association
American Soybean Association
American Trucking Associations
Coalition for Renewable Natural Gas
Connecticut Energy Marketers Association
Empire State Energy Association, Inc.
Energy Marketers Association of Rhode Island
Energy Marketers of America
Energy Marketers of New Hampshire
Fuel Cell and Hydrogen Energy Association (FCHEA)
Illinois Soybean Growers
Iowa Biodiesel Board
Iowa Soybean Association
Kentucky Soybean Association
Maine Energy Marketers Association
Massachusetts Energy Marketers Association
Mid-Atlantic Soybean Association (PA, NJ, DE, MD)
Minnesota Soybean Growers Association
National Association of Convenience Stores (NACS)
National Association of Oil and Energy Service Professionals (OESP)
National Energy & Fuels Institute (NEFI)
National Private Truck Council
National Propane Gas Association
NATSO, Representing America's Travel Centers and Truck Stops
Pennsylvania Petroleum Association
Propane Gas Association of New England
Renewable Fuels Association
SIGMA: America's Leading Fuel Marketers
Sustainable Advanced Biofuel Refiners (SABR)
The New York State Energy Coalition
The Transport Project
Truckload Carriers Association
Wisconsin Soybean Association