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Wyoming Gov. Matthew H. Mead recently signed a bill (HB0009) into law imposing a fuel tax on previously exempt alternative fuels such as biodiesel and ethanol. The new rate of taxation on alternative fuels beginning July 1 is 24 cents per gallon, the same rate gasoline and diesel are taxed.

The bill covers a large number of alternative fuels, from commonly used sources like corn ethanol and biodiesel to compressed natural gas.

“The cost of maintenance and upkeep of Wyoming’s highways should be shared by all users,” Seth Waggener, a communications consultant with the governor’s office, told Biodiesel Magazine. “The governor believes this bill accomplishes this objective.”

The U.S. biodiesel industry is facing significant challenges from federal policy uncertainty, and many state incentives and programs are helping keep some producers afloat. When asked why the governor signed a bill that could hinder biodiesel consumption in Wyoming, Waggener said, “All highway fuels are subject to this ‘user tax,’ and all have their unique challenges with federal policy.”