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

Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →
Illustration of past due invoices with red X on top with background of a truck at a loading dock
Fleet ManagementJuly 27, 2026

Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.

When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.

Read More →
Photo of cable bridge crossing Detroit River
Fleet Managementby Deborah LockridgeJuly 23, 2026

Long-Awaited Canadian Border Bridge to Open in Detroit

For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.

Read More →
Ad Loading...
Blue International heavy-duty truck with Aurora driverless truck software coming head-on on an interstate highway
Equipmentby Deborah LockridgeJuly 22, 2026

Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight

Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.

Read More →
American Trucking Associations for-hire tonnage graph
Fleet Managementby Deborah LockridgeJuly 21, 2026

Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery

The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.

Read More →
Cyberstop column header depicting images of ChatGPT prompt on a smartphone and shadowy hooded figure
Fleet Managementby Ben WilkensJuly 17, 2026

Think Your Trucking Fleet Isn't Using Much AI? Think Again

Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.

Read More →
Ad Loading...
Photo of semi trucks with Panther, ArcBest, and ABF trailers backed up to docks, with ArcBest logo superimposed on top
Fleet Managementby Deborah LockridgeJuly 17, 2026

ArcBest Consolidates Brands, Cuts Workforce

The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.

Read More →
Cover of ATRI operational costs study with graph clip art and photo of trucks on highway in the background
Fleet Managementby Deborah LockridgeJuly 15, 2026

Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession

ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.

Read More →
Micheline AI Assistant.

Michelin Adds AI Assistant to MyConnectedFleet Platform

Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.

Read More →
Ad Loading...
LytxOne Platform.

LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools

New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.

Read More →