Biodiesel Cold Soak Tax Credit Deadline Pushed Back

John Davis

irslogoBiodiesel producers not quite able to pass the newest quality standard… ASTM D 6751, which now includes a Cold Soak Filtration Test (CFST)… will have some extra time when they can still claim the Internal Revenue Service’s dollar-per-gallon tax credit. Those not meeting the new standard were supposed to lose the credit as of April 1st, but that’s been rolled back to October 1st.

Now, the CFST was developed to help cut down on fuel that has a tendency to turn to solid and clog fuel filters. This story from Biodiesel Magazine points out the extension puts the industry in an interesting position:

For producers having trouble passing the test, it is good news for them that they can continue to collect the credit while modifying their process. However, buyers are interested in purchasing B100 that meets the latest version of D 6751, which means purchasing biodiesel that passes the CSFT.

BQ-9000 certified producers and marketers, however, must meet the latest version of D 6751 to remain eligible for their BQ-9000 status.

Also, the invisible allowance of B5 in the diesel fuel specification, ASTM D 975, is predicated upon B100 meeting the latest version of D 6751.

The version of the cold soak method in existence today, which many people in the industry say is flawed, will be replaced later this year by a new, more feedstock-equal test method.

As you might remember from my post earlier this week, the newest ASTM quality standard… with the new Cold Soak Filtration Test… just passed out of the group’s committee of standards review process and received an official number – ASTM D 7501.