Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Expiration of Biodiesel Credit Leaves Producers and Retailers Uncertain

The biodiesel tax credit expired at the end of last week, leaving biodiesel producers and truckstops in uncertainty over what the next few months may hold, and truckers concerned about possible price increases

by Staff
January 4, 2010
Expiration of Biodiesel Credit Leaves Producers and Retailers Uncertain

A B20 biodiesel and E85 pump in Alabama along I-65.

3 min to read


The biodiesel tax credit expired at the end of last week, leaving biodiesel producers and truckstops in uncertainty over what the next few months may hold, and truckers concerned about possible price increases.

Ad Loading...



According to Michael Frohlich, director of federal communications at the National Biodiesel Board, there has been some talk of layoffs and shutting down among smaller biodiesel makers, but biodiesel producers have been waiting until after the holidays to announce their final plans for moving forward. These businesses are evaluating how things are going, looking at how much capital they have on hand, and seeing how long they can go on without the subsidy.

Last month, the Senate decided to table the consideration of an extension to the biodiesel tax credit until after the holidays, but some say the delay would force biodiesel producers to cease operations and lay off their workers because consumer demand for the fuel would plunge without the credit. The Senate has been tied up with other priorities, especially the health care debate. Sens. Max Baucus, D-Mont., and Charles Grassley, R-Iowa, have committed to taking up the legislation when Congress reconvenes this month. Although the timing of the legislation is unknown, Frohlich says the $1 per gallon credit will likely pass and could be made retroactive to Jan. 1.

According to NATSO, a national trade association representing travel plaza and truckstop owners and operators, truckstops will likely see a sharp drop in the availability of biodiesel and an increase in prices, until an extension is passed.

Rich Moskowitz, vice president and regulatory affairs counsel at the American Trucking Associations, says the end of the subsidy will essentially cause a direct increase in cost for the trucking industry because of the mandates to use biodiesel. Specifically, the Federal Renewable Fuels Standard requires the use of 650 million gallons of biodiesel in 2010, and without the $1 a gallon credit, this would cost the trucking industry and consumers an additional $650 million this year. In addition, some states have biodiesel requirements, such as Minnesota, which requires diesel fuel to contain 5 percent biodiesel.

However, these mandates will create some artificial demand, Moskowitz says, as some will be forced to buy it. While the 650 million gallons will certainly keep some producers afloat, there are more biodiesel producers out there than are gallons of biodiesel mandated for use, Moskowitz adds.

According to Frohlich, consumers in the states with mandates will end up eating the additional costs for biodiesel. Without the subsidy, the biodiesel industry will not see a whole lot of excess production, he says. The NBB is directing its members to contact their elected officials and tell them about the importance of the tax credit to their business.

With the added financial pressures, biodiesel producers could be cutting corners, Moskowitz says. Three years ago, the industry was having problems with the quality of biodiesel produced in the U.S., causing operational problems for trucking companies. Since then, the NBB has implemented a quality assurance program, but there are still some problems, Moskowitz says. He urges trucking companies to be vigilant in choosing a biodiesel producer during this time.

More Drivers

Illustration of driver medical exam paperwork over duotone background of a blood pressure check

FMCSA Extends Paper Medical Card Exemption … Again

Five states still aren't ready to accept commercial driver medical exam information directly from the medical examiner's registry.

Read More →
Mack Pioneer tractor.
Driversby Jack RobertsApril 10, 2026

Mack Launches Digital Driver Guide for Chassis-Specific Truck Info

Mack’s new, virtual owner’s manual delivers VIN-based, on-demand guidance for vehicle systems via web, app, and soon in-cab displays.

Read More →
Close-up of Western Star truck logo with red star emblem on chrome grille, representing the brand’s identity in the trucking industry.
Driversby News/Media ReleaseApril 6, 2026

Western Star Showcases Truckers' Pride and Skill

Western Star is expanding its Star Nation Experience in 2026, adding new competitions and dealer participation to highlight operator skills and promote careers in trucking.

Read More →
Ad Loading...
Photo of truck driver at podium holding award
Driversby News/Media ReleaseMarch 27, 2026

Best Fleets to Drive For: Two Carriers Earn Overall Award for First Time

CarriersEdge announced the 2026 Best Fleets to Drive For overall winners, with Crawford Trucking, Fortigo Freight Services, and FTC Transportation receiving top awards.

Read More →
Illustration of Department of Labor building, diesel technician at a computer, and driver training semi trailer
Driversby Deborah LockridgeMarch 10, 2026

Federal Proposal Would Allow Pell Grants for Shorter-Term Job Training

The Department of Labor plans to expand Pell Grant eligibility to some shorter workforce training programs, a move the American Trucking Associations said will help strengthen commercial driver training schools and diesel technician training programs.

Read More →
Illustration of truck owner operator and magnifying glass with the word "regulations"
Driversby Deborah LockridgeFebruary 26, 2026

Owner-Operator Model Gets Boost as DOL Proposes 2024 Independent Contractor Definition Reversal

For an industry that has watched this issue go back and forth for years, the independent contractor proposal marks the latest swing in the regulatory pendulum.

Read More →
Ad Loading...
 Truck with door open and enforcement officer talking to driver about ELD
DriversFebruary 26, 2026

FMCSA Reinstates Field Warrior ELD to Registered Device List

One electronic logging device has been reinstated to the FMCSA's list of registered ELDs.

Read More →
Photo of truck driver in yellow safety vest walking alongside tractor-trailer
Driversby Deborah LockridgeFebruary 25, 2026

How One Company is Using Smart Suspension Technology to Reduce Driver Injuries and Improve Retention

America’s Service Line adopted Link’s SmartValve and ROI Cabmate systems to address whole-body vibration, repetitive strain, and driver turnover. The trucking fleet is already seeing measurable results.

Read More →
Illustration with photos from some of the 2026 Best Fleets to Drive For honorees
Driversby News/Media ReleaseFebruary 24, 2026

CarriersEdge Announces 2026 Best Fleets to Drive For

The 18th annual contest recognizing the best workplaces for truck drivers sees changes to Top 20, Hall of Fame

Read More →
Ad Loading...
Illustration of driver students around trucks with distressed graphic elements and safety cones
Driversby Deborah LockridgeFebruary 19, 2026

FMCSA Targets 550+ ‘Sham’ CDL Schools in Nationwide Sting Operation

The Federal Motor Carrier Safety Administration issued more than 550 notices of proposed removal to commercial driver training providers following a five-day nationwide enforcement sweep. Investigators cited unqualified instructors, improper training vehicles, and failure to meet federal and state requirements.

Read More →