The American Soybean Association (ASA) and the National Biodiesel Board (NBB) called on Congress today to complete approval of a comprehensive energy bill this year. The U.S. House and Senate return to Washington, D.C., on November 12, for a special post-election session where they have the opportunity to provide important production and investment tax incentives for new renewable energy production and a renewable fuels standard that would boost America’s use of biodiesel.

"The comprehensive energy bill may be the most important piece of legislation ever considered by Congress for promoting the development of renewable energy," said ASA President Dwain Ford, a soybean producer from Kinmundy, Illinois. "It’s in the best interest of the public for the 107th Congress to act now to pass this legislation that would spur economic recovery, enhance national security and improve the environment."

Energy legislation, particularly the biodiesel tax incentive, is a top priority for soybean growers and the biodiesel industry. Furthermore, a new public opinion study shows that Americans by a 2-1 ratio are willing to support financial and tax incentives to increase the use of renewable fuels like biodiesel. Wilson Research Strategies conducted the national omnibus survey of 1000 adult Americans in October. Respondents said they supported the incentives because of biodiesel’s ability to protect human health, contribute to cleaner air, reduce foreign oil imports and more.

"The message is clear that farmers, the biodiesel industry and Americans support biodiesel incentives," said NBB President Bob Metz. "The time is now for the House and the Senate to break new ground for renewable fuels."

The specific actions the groups seek include approval of a comprehensive energy bill that includes a biodiesel tax incentive and a renewable fuels standard. The Senate has approved a comprehensive energy bill that contains the biodiesel tax incentive authored by Senators Blanche Lambert Lincoln (D-AR) and Charles Grassley (R-IA) as well as the renewable fuels standard introduced by Senators Chuck Hagel (R-NE) and Tim Johnson (D-SD).

The House’s energy bill contains no similar provisions, but Representative Kenny Hulshof (R-MO) introduced H.R. 4843, which creates a tax incentive for biodiesel. Currently, H.R. 4843 has 88 co-sponsors. Like the biodiesel tax incentive that was included in the U.S. Senate-passed Energy Bill, H.R. 4843 allows a one-cent reduction in the diesel fuel excise tax for each percentage of biodiesel that is blended with diesel fuel up to 20 percent. Also like the Senate-approved provision, H.R. 4843 provides for the reimbursement of the Highway Trust Fund by the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC).

Biodiesel is a cleaner burning alternative fuel made from renewable resources, such as soybean oil produced by American farmers. It works in any diesel engine with few or no modifications and has achieved a full national standard (ASTM D 6751). More than 250 vehicle fleets use B20, a mixture of 20 percent biodiesel with 80 percent petrodiesel, commercially nationwide. Lower level biodiesel blends, such as B2, are used in countless pieces of equipment from tractors to over the road semi trucks, and hundreds of fuel distributors are now carrying biodiesel blends nationally.