The biomass-based diesel industry has received billions of dollars in subsidies and tax credits over the last 20 years, and taxpayer costs are expected to rise in the future. In previous years when subsidies, particularly the biodiesel tax credit, were predictable and in place prospectively, market distortions resulted in the industry increasing production levels to take advantage of billions of dollars in tax breaks. Experts have also linked biodiesel subsidies to greater greenhouse gas (GHG) emissions and higher food and fuel costs.

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