Renewable Energy Group Inc., the biggest U.S. biodiesel maker, rose the most in three months after Congress approved legislation extending a tax credit for the industry.
A $1-a-gallon biodiesel tax credit that expired Dec. 31 would be extended under legislation that passed the U.S. House of Representatives today.
The Environmental Protection Agency said gasoline refiners must use 1.28 billion gallons of biodiesel next year, under a program that was hit by fraud earlier this year.
The U.S. House Ways and Means Committee has proposed reducing the tax credit that helps support the ethanol industry by 20 percent to cut spending, according to two people familiar with the matter.
Ethanol futures were little changed in Chicago amid uncertainty on whether Congress will extend the blenders tax credit.
U.S. Senators Charles Grassley and Kent Conrad and 13 other lawmakers urged the government to extend incentives supporting the ethanol industry.
Government incentives for the ethanol industry would be reduced by 20 percent and extended for one year under a bill by U.S. Senator Max Baucus that is set for a vote tomorrow.
Seventeen U.S. senators from both parties said they want to end government incentives supporting the ethanol industry.
The Environmental Protection Agency said that biodiesel made from palm oil doesn’t meet the requirements to be added to its renewable fuels program because its greenhouse-gas emissions are too high.