Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Is Bio Fuel Dead for Your Fleet Fuel Program?

We aren't going to say that just yet. But Congress has sure made it difficult for that market. As most of you know, the $1 a gallon tax credit went away at the end of 2009

by Glen Sokolis, Sokolis Group
March 30, 2010
Is Bio Fuel Dead for Your Fleet Fuel Program?

 

4 min to read


We aren't going to say that just yet. But Congress has sure made it difficult for that market. As most of you know, the $1 a gallon tax credit went away at the end of 2009.

Ad Loading...

The credit expired at the end of 2009 and virtually shut down the industry, says the American Soybean Association. Roughly 11 percent of U.S. soybean oil is used in making the biofuel, which is a bolster for soybean prices.

What is interesting about all of this is the House and Senate have passed bills to renew the credit for 2010, now they must agree on a common text to send to the president. "Neither the House or Senate has signaled any particulars on how they will do that," said Michael Frohlich of the National Biodiesel Board, a trade group.

Our Congress, not agreeing with each other? Who would have thought that could happen? It wasn't that long ago that the $787 billion federal stimulus package last year included $79 billion for renewable energy. In January, President Barack Obama awarded $2.3 billion of that money in tax credits to renewable energy companies.

The tax credit is one provision in a $149 billion bill focused on job creation and extension of tax incentives. Remember these are the jobs that are supposed to help get the economy going. Right now the bio industry is having a hard time getting your fleet of trucks moving without the tax incentive. Like most new programs, this one needs a little boost from Uncle Sam to get off the ground.

I believe Congress knows that it is important, but don't expect to see anything soon. Why? Springbreak! Yes, resolution is unlikely before mid-April, said two biofuel officials. Congress soon will recess until April 13th, they noted, and a final vote on the credit could be delayed until late April or later, depending on the pace of House-Senate negotiations. It would be a nice thought if it were to pass on or right before Earth Day (April 24, 2010).

We have all been sold on how wonderful biodiesel is, and I am not arguing. It just reminds me of someone pulling a chair out from under you when you go to sit down. Biodiesel production is forecast at 800 million gallons this year as federal mandates require minimum amounts of the fuel to be mixed into diesel by blenders and refiners.

In addition, revival of the tax credit would be retroactive to Jan. 1, which adds some incentive to make the fuel, only if the tax credit is retroactive and I believe it will be. But isn't that a pain? The industry has, for at least four months, been turned on the side of its head. Then we have retroactive tax credits, but I don't think they are going trickle down to the trucking side of the world. If you paid for fleet fuel without the tax incentive in it, it would be hard to believe they would let you credit that back. We never say never though, since crazier things have happened with Congress.

Let's stop the talk about green jobs and doing something about it. Don't let tax incentives that are important to a new and growing industry just die. Biodiesel burns cleaner, it's American made, it has more lubricity in it to help with Ultra Low Sulfur diesel, it creates jobs, etc. Let's get our fleet fuel programs running again with biodiesel.

Glen Sokolis is president of Sokolis Group, a nationwide fuel management and fuel consulting company, www.FuelManagementSokolisGroup.com. You can reach him at gsokolis@sokolisgroup.com or (267) 482-6160.

Previous installments of "Friday Fuel:"
* "Successful Fuel Management Program Equals Discipline", 9-11-09
* "Who's Watching Your Fuel Program," 9-18-09
* "Fleet Fuel Margins: Are You Paying Too Much?" 9-25-09
* "How Do You Audit Your Fleet Fuel Invoices?" 10-2-09
* "Fleet Fuel Price Negotiating: Details, Details", 10-9-09
* "Mobile On-Site Fueling", 10-16-09
* "The Bees Are Still Buzzing: Handling Fuel on a Daily Basis", 10-23-09
* "Fleet Fuel Card Shopping", 10-30-09
* "Is Your Fuel Management Ready for Winter?", 11-6-09
* "Don't Let the Weather Freeze Your Deliveries", 11-13-09
* "Fuel Management or Fuel Inventory? That is the Question", 11-20-09
* "Put Your Fleet Fueling Policy in Place For 2010, Part I", 12-4-09
* "Put Your Fleet Fueling Policy in Place For 2010, Part II", 12-11-09
* "Be Safe, Not Sorry With Fuel Management During the Holidays", 12-18-09
* "Looking Back: 2009 Fuel Management in Review", 12-23-2009
* "Oil's Ups and Downs", 1-8-2010
* "Why Oil Does What It Does When It Comes to Prices", 1-15-2010
* "Controlling Fuel Efficiency When Fuel Prices Are Unpredictable", 1-22-2010
* "The Motivation Behind Mobile Fleet Fueling", 1-29-2010
* "Fleet Fuel Prices: What are They Now?", 2-5-2010
* "Fuel Management Lost at Sea," 3-5-10
* "Spring is in the Air.....and There's Water in my Tank!", 3-19-10
 

Subscribe to Our Newsletter

More Fleet Management

Equity Interest Auction
SponsoredJune 8, 2026

AUCTION OF EQUITY INTEREST IN HEAVY HAUL TRUCKING COMPANY!!

Mark your calendar: June 30, 2026 (10:00 a.m. PDT). MagnaTrans, LLC, a California limited liability company doing business as Magna Transportation Group is going to auction! Bid on a 37.5% ownership interest in this Rancho Cucamonga-based heavy haul and over-dimensional trucking company operating across California, Oregon, and Arizona. The equity interest will be sold to the highest bidder or bidders under Article 9 of the Uniform Commercial Code at 10:00 a.m. PDT.

Read More →
Volvo OTA updates.

Volvo Trucks Adds Unattended Over-the-Air Software Update Capabilities

The latest evolution of Volvo’s over-the-air update technology allows software updates to run while trucks are parked, helping fleets keep vehicles current without disrupting operations.

Read More →
Podcast thumbnail illustration
Fleet ManagementJune 4, 2026

How Waste Connections is Using Data, Telematics, and AI

How do you manage and maintain more than 18,000 connected trucks? Data. Lots of it.

Read More →
Ad Loading...
YouTube thumbnail showing Chuck Palmer illustration with refuse truck in background

Why Fleet Data Matters More Than Ever at Waste Connections [Watch]

Waste Connections' Chuck Palmer explains how telematics, predictive maintenance, safety analytics, and AI help keep vehicles on the road and drivers safe in this episode of HDT Talks Trucking.

Read More →
Illustration of tractor-trailer and cybersecurity
Fleet ManagementJune 3, 2026

NMFTA Launches Free, Anonymous Cybersecurity Threat Report Portal

Organizations are encouraged to anonymously report freight fraud, cargo crime, and cyber threats while gaining visibility into incidents reported across the transportation sector.

Read More →
Cover feature graphic showing AI background

AI Can Optimize a Fleet. Can It Replace Human Judgment?

Fleets fear falling behind if they don’t adopt AI quickly enough. They also fear what happens if the technology makes the wrong decision.

Read More →
Ad Loading...
Jamie Hagen owner, Hell Bent Xpress.
Fleet Managementby Jack RobertsMay 29, 2026

Jamie Hagen Gets Real About Running a Small Fleet in an Uncertain Economy

Small fleet owner Jamie Hagen says new legal risks, volatile fuel prices, and a changing freight market are forcing small carriers to rethink how they operate — and what they can afford.

Read More →
Jamie Hagen owner, Hell Bent Xpress.
Fleet ManagementMay 28, 2026

Jamie Hagen Gets Real About Freight, Fuel Prices, Safety, and Small-Fleet Survival

Running a small trucking fleet right now isn’t easy, especially right now. And Jamie Hagen doesn’t sugarcoat it.

Read More →
Jamie Hagen, Hellbent Xpress.
Fleet Managementby Jack RobertsMay 28, 2026

Jamie Hagen Gets Real About Freight, Fuel Prices, Safety, and Small-Fleet Survival

Running a small trucking fleet right now isn’t easy, especially right now. And Jamie Hagen doesn’t sugarcoat it.

Read More →
Ad Loading...
Illustration of a padlock attached to heavy chains over a digital binary background with the words “Data Lock In?” in large bold text.
Fleet ManagementMay 28, 2026

Data Lock‑In or Integration Lock‑Out?

Data fragmentation is costing dealerships, OEMs, fleets, and upfitters millions. Here’s why interoperability may be the fix the trucking industry needs.

Read More →