Effort to Change Biodiesel Tax Credit Fails Again

Certain biodiesel producer interests tried in recent weeks to include in unrelated Federal Aviation Administration (FAA) legislation a provision that would have repealed the $1.00/gallon biodiesel blenders' tax credit and replaced it with a producers' credit. Thanks to strong pushback from NATSO and other interested parties, that effort has failed, and the provision has not been included in that legislation.

NATSO members will recall that biodiesel producer interests undertook a similar effort at the end of 2015 to move the biodiesel blenders' credit upstream to the producer level, which NATSO also successfully opposed. NATSO has long argued that reforming the biodiesel tax credit in this fashion would result in fuel retailers paying a higher price for biodiesel that inevitably would be passed down to consumers in the form of higher prices at the pump, leading to less biodiesel consumption in the United States and hindering the government's efforts to utilize cleaner burning fuels.  

NATSO worked with other groups, including the American Trucking Associations (ATA), the Advanced Biofuels Association (ABFA), as well as SIGMA, PMAA, and NACS, to send a letter to key Senate lawmakers opposing this policy change.  
The letter, which was signed by associations representing "every gallon of diesel fuel sold in the United States as well as those who use the most diesel fuel in the United States," said the proposed change would not only disrupt blending economics and increase prices at the pump, but also increase the cost of heating oil, violate trade agreements, and disrupt the Environmental Protection Agency's implementation of the Renewable Fuel Standard.
Click here to read the full letter.



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David Fialkov

David Fialkov is the Vice President of Government Relations, as well as the Legislative and Regulatory Counsel, at NATSO. In this capacity, Mr. Fialkov directs NATSO's legislative, regulatory, and legal strategy on a range of issues, including transportation, energy and fuels, labor, data security, and taxes. Mr. Fialkov also oversees NATSO's political engagement program, including individualized legal and political counsel to member companies. Prior to joining NATSO, Mr. Fialkov was the senior associate in the Government Affairs and Public Policy practice at the law firm of Steptoe and Johnson in Washington, D.C. At Steptoe, Mr. Fialkov advised clients on legislative, regulatory, and political issues, as well as legal concerns. His primary clients included trade associations representing the motor fuel wholesale and retail industries, including the National Association of Convenience Stores and the Society of Independent Gasoline Marketers of America. Mr. Fialkov's focus was not only on the motor fuels business, but also the litany of other issues that retailers confront, including labor matters, foodservice issues, healthcare and employment issues, tax matters and data security. Prior to joining Steptoe, Mr. Fialkov graduated with honors from George Washington University Law School. He received his B.S. Summa cum laude with highest honors from Clark University in Worcester, MA. He lives in Washington, D.C. with his wife Allison and daughter Lilah. More
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