American Soybean Association (ASA) Executive Committee member Neal Bredehoeft, a soybean and corn farmer from Alma, Mo., joined U.S. Congressman Kenny Hulshof (R-MO) yesterday to announce the introduction of H.R. 4843, legislation authored by Congressman Hulshof that creates a tax incentive for biodiesel.

The announcement was made at the Jefferson City Oil Company in Jefferson City, Mo., which recently opened the first public biodiesel pump in Missouri. Biodiesel is a clean-burning alternative to petroleum-based diesel fuel that is produced primarily from soybean oil.

“The biodiesel industry has made significant strides in recent years,” Bredehoeft said. “In fact, it has grown from 100,000 gallons in 2000 to 10 million gallons in 2001. However, biodiesel is not competitive in most markets without some type of assistance with cost. That’s where H.R. 4843 comes in.”

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 diesel fuel that is blended with biodiesel up to 20 percent. H.R. 4843 also provides for the reimbursement of the Highway Trust Fund by the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC).

“Enacting legislation that encourages the use of biodiesel is one of our top priorities and we’re extremely grateful for Congressman Hulshof’s leadership on this issue,” Bredehoeft said. “ASA stands ready to help Congressman Hulshof convince Energy Bill Conferees that a biodiesel tax incentive should be included in their final bill.”

Although H.R. 4843 is a freestanding bill, the aim is to have its provisions included in the final Energy Bill. Negotiations on the final Energy Bill are expected to begin soon in a joint House/Senate Conference Committee. To show support for biodiesel, ASA is asking its members to contact their Representatives and encourage them to cosponsor H.R. 4843.