Statement From President & CEO Cynthia "CJ" Warner on the Enactment of the Biodiesel Tax Credit Extension
AMES, Iowa (December 23, 2019) — Chevron Renewable Energy Group President & CEO CJ Warner issued the following statement upon President Trump’s signing of legislation which included a retroactive reinstatement and extension of the $1 per gallon Biodiesel Tax Credit (“BTC”) from January 1, 2018 through December 31, 2022:
“Friday’s news represents a big win for the environment, for agriculture, and for US motorists. For too long the biomass-based diesel industry has been held back from showing its real potential due to the recurring uncertainty around the BTC. Now, thanks to the work of biodiesel champion lawmakers, we can accelerate our strategy and further deliver at scale the enormous benefits of biodiesel and renewable diesel.
"We are grateful to so many who made this a reality for the biodiesel industry. Senator Chuck Grassley is a tireless biodiesel champion and his intrepid leadership helped build the industry from the beginning. Senator Maria Cantwell’s years of persistence on the industry’s behalf as a fighter for lower carbon fuels was crucial. Senator Joni Ernst played a key role in securing President Trump’s support for the BTC and we sincerely thank all of these pivotal leaders. Thank you to all of the biodiesel advocates in the House, including Iowa members Abby Finkenauer and Cindy Axne and Washington State Congressman Derek Kilmer.
As we look to the future with this supportive policy, we are committed to delivering value to our stakeholders, including our customers and shareholders, through a balanced approach to capital allocation focusing on high quality, high returning investments, including share and bond repurchases that will strengthen the company and our ability to deliver high quality, low carbon fuels. The proceeds from the BTC provide tremendous, predictable resources to support achievement of these goals.”
About Chevron Renewable Energy Group
Chevron Renewable Energy Group is leading the energy industry transition to sustainability by transforming renewable resources into high-quality, cleaner fuels. Chevron Renewable Energy Group is an international producer of cleaner fuels and North America’s largest producer of biodiesel. Chevron Renewable Energy Group solutions are alternatives for petroleum diesel and produce significantly lower carbon emissions. Chevron Renewable Energy Group utilizes an integrated procurement, distribution and logistics network to operate 14 biorefineries in the U.S. and Europe. In 2018, Chevron Renewable Energy Group produced 502 million gallons of cleaner fuel delivering over four million metric tons of carbon reduction. Chevron Renewable Energy Group is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the use of funds from the retroactive reinstatement of the BTC for 2018 and 2019 and the future operation and success of our business. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, potential changes in governmental programs and policies requiring or encouraging the use of biofuels; availability of federal and state governmental incentives for biomass-based diesel production; changes in the spread between biomass-based diesel prices and feedstock costs; that any disruption of operations at our Geismar renewable diesel refinery would have a disproportionately adverse effect on our profitability; the future price and volatility of feedstocks and petroleum and products derived from petroleum; risks associated with fire, explosions, leaks and other natural disasters at our facilities; the effect of excess capacity in the biomass-based diesel industry and announced large plant expansions and potential co-processing of renewable diesel by petroleum refiners; unanticipated changes in the biomass-based diesel market from which we generate almost all of our revenues; seasonal fluctuations in our operating results; potential failure to comply with government regulations; competition in the markets in which we operate; our dependence on sales to a single customer; technological advances or new methods of biomass-based diesel production or the development of energy alternatives to biomass-based diesel; our ability to successfully implement our growth strategy; and other risks and uncertainties described in Chevron Renewable Energy Group's annual report on Form 10-K for the year ended December 31, 2018 and subsequently filed Form 10-Q. All forward-looking statements are made as of the date of this press release and Chevron Renewable Energy Group does not undertake to update any forward-looking statements based on new developments or changes in our expectations.