The American Soybean Association (ASA) is pleased that the farm aid package put forth by Republican congressional leaders includes legislation that will allow vehicle fleets regulated under the Energy Policy Act of 1992 to earn credits toward meeting EPACT requirements by operating on a 20/80 percent blend of biodiesel/diesel fuel. "Biodiesel is a viable alternative fuel for fleet managers, a cleaner-burning fuel that’s better for the environment, and passage of this legislation will help farmers because it will add 11 cents per bushel to soybean prices," stated ASA Chairman Mark Berg, a soybean producer from Tripp, South Dakota.

"Soybean farmers couldn’t be more pleased that our biodiesel legislation is included in the farm aid package. Biodiesel has been one of ASA’s top legislative priorities for more than two years. This biodiesel legislation will not create any new tax breaks or subsidies. It will not result in any additional mandates or requirements to use biodiesel or B-20, and will not directly impact any federal or state government budgets or spending. What it will do, is give fleet managers another option and it will help producers by improving soybean prices," Berg said. "We would like to see biodiesel become an established alternative fuel and make a contribution toward achieving EPACT’s goals. All we are asking for is the opportunity to compete fairly within the EPACT market."

The Energy Policy Act of 1992 calls for alternative fuels to replace imported petroleum used by the transportation sector by 10 percent by the year 2000 and 30 percent by 2010. Despite this requirement, imported petroleum use in this sector is steadily increasing. According to the U.S. Department of Energy, petroleum import dependence in this sector was about 40 percent in 1992 and will reach almost 60 percent by the year 2005.

Biodiesel is a cleaner-burning diesel fuel made from natural, renewable sources such as soybean oil that is often in surplus. An independent study has verified that the 20 percent biodiesel and 80 percent petroleum diesel blend (B-20) reduces air pollution when used with a catalytic converter. Compared to petroleum diesel, biodiesel blends have significantly lower emissions of the pollutants that may be cancer causing. B-20 reductions are more than or around 50 percent in particulate matter, carbon monoxide, carbon dioxide, and sulfur dioxide in comparison to petroleum diesel emissions.