Unprecedented Purchase Sets Challenge for All Government Agencies

The American Soybean Association (ASA) is pleased with Agriculture Secretary Dan Glickman’s announcement yesterday that the U.S. Department of Agriculture (USDA) will purchase an unprecedented level of 20,000 gallons of biodiesel this year. ASA Chairman Mike Yost, a soybean producer from Murdock, Minn., participated in the ceremony at USDA, at which President Bill Clinton signed an executive order to triple use of bioenergy and bio-based products by the year 2010. Along with President Clinton and Secretary Glickman, participants included Energy Secretary Bill Richardson, Environmental Protection Agency Administrator Carol Browner and Senate Agriculture Committee Chairman Richard Lugar (R-IN).

"ASA appreciates the Administration’s efforts to focus the nation’s attention on the value of biodiesel to increase demand for soybeans as well as benefit the environment and enhance our nation’s energy security," Yost said. "This is a perfect example of the value of public/private partnerships since producers have invested $20 million in state and national soybean checkoff funds in biodiesel, the private sector has contributed $60 million in developing industry infrastructure, and the federal government has conducted $10 million in research. We also applaud the bipartisan congressional spirit that supports biodiesel. "

Along with helping boost prices for soybeans, Glickman cited the environmental benefits of using cleaner burning, renewable fuels, like biodiesel. Glickman also announced that he will seek specific funding in the 2001 budget to assist research and commercialization of bio-based products and that USDA will publish a product list to assist potential buyers. USDA’s Agricultural Research Service was instrumental in biodiesel research and is now fueling heavy-duty vehicles with biodiesel at its Beltsville, Maryland facilities. The Black Hills, South Dakota Forest Service facilities also began using biodiesel in July.

"The American Soybean Association also applauds Secretary Glickman’s challenge to other federal agencies to purchase biodiesel blends for their fleets," Yost added.

President Clinton’s executive order to triple use of bioenergy and bioproducts by 2010 is designed to reduce greenhouse gas emissions by more than 100 million tons, which is the equivalent of taking more than 70 million cars off the road. The executive order will also create a permanent council consisting of cabinet-level officials and others to develop a detailed research program and budget request.

ASA has long promoted the research and use of biodiesel. Last year, Congress approved ASA-supported legislation to allow public vehicle fleets to earn credits under the Energy Policy Act (EPACT) of 1992 by using a blend of 20 percent biodiesel and 80 percent petroleum diesel, commonly called B20.

ASA also promotes new avenues for biodiesel utilization, including H.R. 2788, introduced by Representatives John Shimkus (R-IL) and Karen McCarthy (D-MO) on August 5. This bill would allow biodiesel to compete for funds in the Congestion Mitigation Air Quality Improvement (CMAQ) program. The National Biodiesel Board, state soybean boards, National Renewable Energy Laboratory and Department of Energy have also conducted numerous educational programs for fuel buyers on biodiesel.