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FOR IMMEDIATE RELEASE: February 19, 2010


Facility is Only Biodiesel Plant in New York - Biodiesel, with Proper Support, Could become Major Industry in the Region; Industry Already Employs 23,000 People Across the Country

Tax Incentive Considered Critical to Facility Expired Dec 31st of 2009- Schumer Vows to Restore Incentive, otherwise Firm Could Go Under

Schumer: New York has The Potential to Lead the Country in Clean Energy Jobs - Congress Must Restore Program Quickly

Today, U.S. Senator Charles E. Schumer visited Northern Biodiesel in western Wayne County to announce a push to renew a tax incentive absolutely vital to the future of the biodiesel industry in New York. Northern Biodiesel facility is the only fully functioning manufacturer of the fuel in the state, and without the tax incentive that expired December 31st 2009; it is in danger of going under. Schumer will say that with the proper tax incentives in place biodiesel could become a huge industry in New York, employing thousands of people.  Across the country there are currently 23,000 biodiesel related jobs and New York is well positioned to capture a significant portion of future growth. Schumer was joined by Bob Bechtold, Owner of Northern Biodiesel and John Vavalo, Senior Vice President of Northern Biodiesel, as well as regional economic leaders and elected officials. 


“This tax credit has two great purposes: it works to create jobs and wean our country off foreign oil,” said Schumer. “Upstate New York can become one of the nation’s leaders in new energy production and extending this tax credit is an important part of making that a reality. I will fight tooth and nail to get this extension passed immediately.”


Northern Biodiesel is a new and innovative energy company specializing in alternative fuels, and is the only local producer of biodiesel for Upstate New York. The company has the ability to produce ASTM 6751 certified biodiesel. The company’s facility has the capacity to blend biodiesel to any percentage with petroleum diesel. Northern Biodiesel can ship biodiesel anywhere worldwide. Recently the company participated in a feasibility study with the help of the USDA for the purpose of showing the local agriculture community its raised canola crops. The project demonstrated to the local farmers, the potentials and opportunities of "energy farming."


The biodiesel tax credit was first passed and introduced into the U.S. tax code in 2004. The credit has worked to spur growth in a domestic manufacturing industry that already employs 23,000 people worldwide. Since 2004, the biodiesel tax credit has been renewed with bipartisan support. Extending the tax credit will cost the federal government $13 billion but will produce many more dollars in terms of jobs and economic activity. The result of the tax credit extension will be a net gain for the American taxpayer.


Biodiesel is a clean burning alternative fuel that can be produced from domestic renewable resources and does not contain petroleum. The fuel is made when vegetable oil or animal fat is combined with ethanol or methane. The product of the mixture produces biodiesel which is a nontoxic fuel that can easily be used as a heating oil alternative among other uses. This clean fuel is also extremely efficient. For example, combining 100lb. of the initial mixture yields approximately 100lbs. of fuel so that there is very little waste. Unlike other alternative energies, biodiesel is very resilient during the cold weather so that, for example, when consumers heat their homes with biodiesel they receive the same quality of heat as they would if they used a petroleum-based fuel. Beyond being good for the environment, the use of biodiesel provides a shot in the arm to job growth. The industry directly creates manufacturing jobs, indirectly creates jobs in other fields that work to support the biodiesel manufacturing industry. Additionally, the use of biodiesel as a fuel vastly expands the market for agricultural products and this fact will be especially useful to New York’s substantial agriculture community. The extension of the biodiesel tax credit will allow U.S. producers of this alternative, clean energy to sell it at cheaper prices then their foreign counterparts, thus reducing our country’s massive trade deficit. The use of biodiesels also works to reduce U.S. dependence on foreign oil and thus bolters American energy security.


Schumer added, “The extension of this tax credit is a win for everyone involved. These new businesses will grow, middle class families will find work and we’ll begin to stop importing so much oil from overseas. This is an issue that Republicans and Democrats can come together on and I look forward to working with my colleagues on both sides of the aisle to renew this tax credit.”




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