Congressmen Bill Pascrell, Jr. (D-NJ-09) and Brian Fitzpatrick (R-PA-01) have reintroduced the Renewable Chemicals Act, legislation that will help combat climate change while fostering job growth for American workers. Specifically, the bill would create a tax credit for the production of or investment in qualifying renewable chemicals from biomass. The legislation aims to accelerate commercialization of renewable chemicals and biobased products and help build a resilient biobased economy. Tax credits would be allocated based on an applicant’s job creation, innovation, environmental benefits, commercial viability, and contribution to U.S. energy independence.

"Today I am proud to reintroduce the Renewable Chemicals Act, groundbreaking legislation aimed at fostering innovation and sustainability in our economy. Importantly, this bill will help preserve our environment while boosting American job growth. We need to get this passed,” said Congressman Pascrell. “Our bipartisan bill will help increase production of renewable energy sources and chart a course towards a more sustainable and environmentally conscious future. I urge my House colleagues to support this vital legislation that will boost American energy independence while preserving our environment for our children and grandchildren.”

“Incentivizing innovation is the best way for the United States to simultaneously reduce greenhouse gas emissions and bolster our economic footing. By establishing production and investment tax credits, our bipartisan Renewable Chemicals Act will incentivize these fuels of the future and promote long-term, sustainable economic growth,” said Congressman Fitzpatrick. “I am proud to partner with Representative Pascrell (D-NJ) in introducing this legislation and encouraging American business to pursue a renewable, resilient, clean energy future.”

“AFCC and its member companies thank Representatives Pascrell and Fitzpatrick for sponsoring the bipartisan bill which allows production of renewable chemicals, bioplastics, and biomaterials segment of the biobased economy and circular economy.  The bill encourages domestic innovation, lowering emissions, creating jobs, production of everyday consumer biobased products, and building new or retrofitting infrastructure,” said Dr. Rina Singh, Executive Vice President of Alternative Fuels & Chemicals Coalition (AFCC). “If enacted, the new tax credit for the production of renewable chemicals which includes bioplastics will allow for a credit up to 15% of the sales price of each pound of a renewable chemical or the producer has the option of taking a 30% investment tax credit. A renewable chemical is any chemical which includes bioplastics, that is produced in the United States from renewable biomass and is not less than 95% biobased content.”

“The Renewable Chemicals Act of 2023 is an essential tool for fighting climate change and building a more sustainable economy,” said Mike Belliveau, Executive Director of Defend Our Health. “By creating incentives to produce renewable ingredients for everyday products, this bill with speed the transition away from fossil carbon in favor of renewable materials. This legislation charts a path from plants to products that will help create good jobs, revitalize our rural economy, and slow climate change."

A copy of the Renewable Chemicals Act can be viewed here. A one-pager detailing the legislation is available here.

Congressman Pascrell is one of the Congress’s most prominent proponents of clean energy alternatives. As New Jersey’s only member of the House Ways and Committee, he led the Zero-Emission Nuclear Power Production Credit Act to establish clean energy incentives in the nuclear industry and regularly delivers environmental grants for the communities he represents. Congressman Pascrell is also a champion of offshore wind development to combat climate change and create desirable jobs for American workers.