The U.S. House Ways and Means Committee has extended the federal biodiesel tax incentive. The passage came with several other measures seen as critical to the sustained growth of the biodiesel industry.

The National Biodiesel Board (NBB) applauded the action in this press release:

Specifically, the Renewable Energy and Energy Conservation Act of 2007 includes:

* Extension of the biodiesel tax incentive through 2010. The provision is based on legislation introduced this year by Representatives Earl Pomeroy (D-ND) and Kenny Hulshof (R-MO).
* A provision authored by Rep. Lloyd Doggett (D-TX) to prevent large integrated oil companies from claiming the $1.00 per gallon renewable diesel tax credit. Absent this provision, taxpayers would subsidize existing oil refineries at the expense of stand-alone biodiesel and renewable diesel producers who add to America’s limited refining capacity.
* The closing of the so-called “splash and dash” loophole. This would stop foreign biodiesel producers from shipping their product bound for foreign markets through the U.S. for the sole purpose of claiming the U.S. biodiesel tax incentive.

The NBB did say it is concerned about a part of the bill that restricts U.S. producers from selling their product abroad.