US-based Soap and Detergent Association (SDA) has welcomed the news of a new legislation to eliminate a biofuels subsidy for coproduced renewable diesel which is threatening the supply of tallow for the US oleochemical industry.
The Responsible Renewable Energy Tax Credit Act of 2007 is said to be the first step in restoring a balance between biofuel production and other green issues.
“While unintended, the current complex of biofuels subsidies is threatening the continued existence of the oleochemical industry in the United States,” said SDA vp, government affairs, Dennis Griesing. “Ironically, a historically green industry is facing elimination by the subsidisation of a new one. SDA believes that both can and should coexist as well as thrive together.”