The American Soybean Association (ASA) and the National Biodiesel Board (NBB) are pleased that the United States House of Representatives has passed, by a vote of 249 to 183, energy legislation that includes a Renewable Fuels Standard (RFS) that would grow to 5 billion gallons by 2012. Soon the U.S. Senate will move forward with companion legislation.

“Soybean farmers appreciate the work that went into this House legislation,” said ASA President Neal Bredehoeft, a soybean producer from Alma, Mo. “This is a big step forward in the process of developing a comprehensive energy package that encourages the use of renewable fuels like biodiesel.”

Biodiesel is a cleaner burning fuel made from renewable resources such as soybean oil. Biodiesel works in any diesel engine with few or no modifications. It has the highest energy balance of any fuel and can be used in its pure form (B100), or blended with petroleum diesel at any level. Nationwide, more than 500 major fleets now use biodiesel commercially, and more than 400 retail filling stations also make it available to the public.

“A recent survey shows 74 percent of registered voters support a renewable fuels standard, and 79 percent favor extending the biodiesel tax incentive,” said Darryl Brinkmann, NBB Chairman and a soybean producer from Carlyle, Ill. “Americans clearly see the important role renewable fuels can play in reducing our dependence on foreign oil and cleaning up emissions.”

The ethanol and biodiesel industries have undergone unprecedented growth over the past several years. In fact, the U.S. currently has the capacity to produce more than 3.7 billion gallons of ethanol and biodiesel, and plants under construction will add an additional 700 million gallons of capacity by the end of the year. Most of this growth has been in farmer-owned plants, which taken as a whole, now represent the single largest producer in the country.

“Now we look for the Senate to present legislation that will increase the standard to 8 billion gallons, extend tax incentives for biodiesel into 2011, and modify the qualification for agribiodiesel so that the term only includes esters from virgin vegetable oils derived from crops grown on U.S. farms,” Bredehoeft said. “Use of biodiesel will help reduce our dependence on foreign oil, improve our environment and improve prices paid to farmers for their soybeans.”