The American Soybean Association (ASA) applauds the introduction of several important legislative measures designed to encourage use of biodiesel, a clean-burning alternative to petroleum-based diesel fuel that is produced primarily from soybean oil. These include:

• Biodiesel Tax Incentive (S. 355) – Introduced by U.S. Senators Blanche Lincoln (D-AR) and Chuck Grassley (R-IA), S. 355 would provide a one-cent reduction in the diesel fuel excise tax for each percentage of biodiesel blended with petroleum diesel up to 20 percent.

• EPACT Reform (S. 356, H.R. 316) - Introduced by U.S. Senators Lincoln, Kit Bond (R-MO), and Jim Talent (R-MO), S. 356 would remove the 50 percent limit on biodiesel use under the Energy Policy Act (EPACT) of 1992 program. U.S. Representatives John Shimkus (R-IL) and Karen McCarthy (D-MO) introduced H.R. 316, the U.S. House version of S. 356.

• CMAQ (H.R. 318) – Introduced by Representatives Shimkus and McCarthy, H.R. 318 would allow biodiesel use under the congestion mitigation and air quality (CMAQ) improvement program.

"Securing passage of legislation that would encourage the use and production of biodiesel is a top priority for U.S. soybean farmers this Congress," stated ASA First Vice President and National Biodiesel Board (NBB) Director Ron Heck from his farm in Perry, Iowa. "Thankfully we have some good friends in Congress who share this goal."

There are many benefits to increased biodiesel use. A recent Environmental Protection Agency (EPA) report of biodiesel emissions confirms substantial reduction of unburned hydrocarbons, carbon monoxide, and particulate matter compared to emissions or petroleum diesel. In addition, its primary source – soybeans – is grown here in the U.S., which lessens our nation’s dependency on foreign oil. Increased biodiesel use would also provide a much-needed boost to the struggling farm economy.

The previous Congress was on the verge of approving an Energy Bill that contained strong biodiesel incentives. However, issues unrelated to biodiesel prevented congressional negotiators from reaching an agreement on a final Energy Bill before the 107th Congress adjourned last November.

"Capitalizing on the momentum generated from last year’s success, ASA is anxious to take biodiesel all the way this year," proclaimed Heck.