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ASA, NBB Call for Final Push on Energy Bill Passage

Nov 21, 2003

Lack of Senate Vote to End Debate Brings New Urgency to Effort

The American Soybean Association (ASA) and National Biodiesel Board (NBB) are urging citizens to contact their Senators and ask for their support on the Energy Bill. Senate opponents of the Energy Bill today defeated the motion to invoke cloture. Approval of the motion would have cleared the way for final passage of the Energy Bill, which contains the first ever biodiesel tax incentive. Biodiesel is a cleaner burning alternative to petroleum-based diesel that is made primarily from soybeans that are grown in the U.S.

The motion to end debate and move forward with a Senate vote on the Energy Bill was two votes shy of the 60 necessary. Following the vote, Senate Majority Leader Bill Frist (R-TN) indicated that he plans to hold another vote on cloture before Congress adjourns for the year.

"America needs a comprehensive energy policy now," said ASA President and NBB Director Ron Heck. "It has taken more than three years of work to develop this bill. I strongly urge the Senate to do what is right for America and pass it."

South Dakota soybean farmer and NBB Chairman Bob Metz urged all biodiesel supporters to contact their Senators and ask for their full support of the Energy Bill. "This could be our last chance to contact Senators to remind them of how important this is," he said. "We’ve come too far to watch this initiative fail by a razor thin margin."

Securing passage of a biodiesel tax incentive is the top legislative priority of the ASA and NBB. Due in large part to the efforts of U.S. Senator Chuck Grassley (R-IA) and others, a biodiesel tax incentive was included in the final Energy Bill. It amounts to one penny per percentage point of biodiesel blended with petroleum diesel. The tax incentive will be available to diesel excise taxpayers and other fuel distributors who purchase biodiesel and blend it into diesel fuel. The incentives are intended to reduce the cost of biodiesel to the end consumer in both taxable and tax exempt markets.

By a vote of 246-180, the House approved the final Energy Bill on Tuesday (11/27).

"Because of the biodiesel and ethanol provisions, this is an extremely good bill for rural America," said Heck. "The environmental and national security benefits of renewable fuels like biodiesel and ethanol make it good for the rest of the country as well. We all stand to benefit."