As the Senate Finance Committee moves forward with the mark-up of comprehensive tax reform, the Republican sponsor and champions of the biodiesel tax credit, including Senators Grassley, Roberts and Thune have indicated that there is not a path for successful inclusion of the biodiesel tax credit in the tax reform package at this time. Senate Finance Committee Chairman Hatch is not in favor of adding the biodiesel tax credit or other expired temporary tax credits to the tax reform bill.

In addition, ASA will continue to support the Renewable Fuel Standard (RFS) and work for growth in annual volume requirements.  EPA is expected to issue a final rule on 2018/2019 RFS volumes by the end of November.

Opportunities for growth in domestic biodiesel production could also come in the form of capturing market share that has been going to imports of biodiesel.  Antidumping and countervailing duty trade cases against market distorting, subsidized imports from Argentina and Indonesia are currently pending at the Department of Commerce and International Trade Commission (ITC). This week the Commerce Department issued a decision affirming the agency’s preliminary determination that Argentina and Indonesia unfairly subsidize biodiesel that is imported into the United States. If finalized, cash deposit rates will be required on imports of biodiesel ranging from 71.45 to 72.28 percent for biodiesel from Argentina, and 34.45 to 64.73 percent for biodiesel from Indonesia, depending on the particular foreign producer/exporter involved. Final determinations on the antidumping and countervailing duties are expected in December and January. The Commerce Department determines whether the imports are subsidized and/or dumped, while the ITC determines whether the domestic industry has been injured by reason of such unfairly traded imports. The Commerce Department also determines the margin of duties to impose on imports based on the degree of dumping and subsidies found.