New Pa. law adds biodiesel incentives

CAMP HILL, Pa. — A bill that provides short-term incentives for Pennsylvania’s biodiesel industry has been signed into law.

The legislation provides a 75-cents-per-gallon production incentive for in-state producers of biodiesel (up to $5.3 million per year). The incentives will be available for three years and will be capped at $1.9 million annually for individual biofuels producers.

“The incentive will help kick-start Pennsylvania’s struggling biodiesel industry, which has had difficulty competing with subsidized biodiesel producers from other states,” said Pennsylvania Farm Bureau President Carl T. Shaffer.

Farm Bureau supported the bill, Shaffer noted, because renewable fuels benefit farmers by creating a stronger market for their products, such as soybeans.

Consumers also reap the benefits of expanded renewable fuels efforts, he added.

“Higher energy costs are directly affecting the cost of food in grocery stores,” Shaffer said.

Increased production of biodiesel, ethanol, wind power and other alternative sources of energy will help combat rising transportation, processing and packaging costs, he said.