U.S. Senate approves biodiesel tax credit.
Friday, March 12, 2010
Biodiesel may be making a comeback after stalling out with the expiration of a $1-per-gallon "blender's credit" at the end of 2009.
On Wednesday, the U.S. Senate approved a bill that includes reviving the biodiesel credit, with the support of U.S. Agriculture Secretary Tom Vilsack.
Biodiesel producers, including Energy Alternative Solutions in Gonzales, virtually halted production of the vegetable-based vehicle fuel when the Senate failed to meet its Dec. 31 deadline for renewing the credit.
But the state of California continues to grapple with the issue of biodiesel storage: For now, fuel suppliers are not permitted to store blends of greater than 20 percent biodiesel underground.