March 18 to mark biodiesel’s value to America

The National Biodiesel Board (NBB), American Soybean Association (ASA) and leading Members of Congress are commemorating National Biodiesel Day by emphasizing the importance of passage of the biodiesel tax incentive. March 18, National Biodiesel Day, takes on special significance with national concern over petroleum prices and U.S. troops stationed abroad, underscoring the need for American-made fuels. Biodiesel is a cleaner burning fuel made from renewable resources such as soybean oil. Its use increases energy security and extends petroleum reserves.

National Biodiesel Day takes place on March 18, the date of Rudolf Diesel’s birthday. The biodiesel industry chose his birthday to honor him for his foresight in recognizing the valuable role of vegetable oil based fuel. He originally designed the diesel engine in the late 19th Century to run on peanut oil. Only later did petroleum become the standard. In a 1912 speech, Diesel said "the use of vegetable oils for engine fuels may seem insignificant today, but such oils may become, in the course of time, as important as petroleum and the coal tar products of the present time."

ASA President Ron Heck, an Iowa soybean farmer, and NBB Chairman and ASA Vice President Bob Metz, a South Dakota soybean farmer, will host a teleconference for media at 11:30 a.m. EST/10:30 a.m. CST to update media on the ongoing efforts to secure passage of the tax incentive for biodiesel. Senate Finance Committee Chairman Chuck Grassley (R-IA) will be featured on the teleconference that is available by dialing 800.624.6265 (Passcode: 23530). Other Members of Congress also provided audio and text statements of support for the biodiesel tax incentive and are available at http://www.biodiesel.org/biodiesel_day.

Heck praised Congressional leaders who continue to press for passage of the biodiesel tax incentive. "Thanks to Members of Congress like Senator Grassley, the biodiesel tax incentive is still active, and we remain committed to getting it passed as part of the Transportation Bill,

Energy Bill or other legislative vehicles. By turning this legislation into law, America’s policymakers can take pride in making an important shift in this nation’s ability to increase its reliance on cleaner burning, American-made fuels."

Metz added, "Congress can and should get this legislation passed. America gets nearly 60 percent of its oil from overseas. This trend will never change without legislation like the biodiesel tax incentive."

On February 12, the Senate voted 76-21 to approve a new six-year highway spending bill that provides for road improvements across the nation. The Senate-passed transportation bill contains a biodiesel tax incentive that is virtually identical to the one that was in the Senate Energy bill. It is a federal excise tax credit that amounts to one penny per percentage point of biodiesel blended with petroleum diesel. The tax incentive will be available to diesel excise taxpayers and other fuel distributors who purchase biodiesel and blend it into diesel fuel. The incentives are intended to reduce the cost of biodiesel to the end consumer in both taxable and tax exempt markets.

Biodiesel is a cleaner burning alternative to petroleum-based diesel, made from domestically produced resources such as soybeans that are grown in the United States. It works in any diesel engine with few or no modifications. Biodiesel can be used in its pure form (B100), or blended with petroleum diesel at any level—most commonly 20 percent (B20). More than 400 major fleets use biodiesel commercially nationwide. More than 200 retail filling stations also make biodiesel available to the public, and more than a thousand petroleum distributors carry it nationwide.

Biodiesel has the highest energy balance of any fuel. A U.S. Department of Energy and U.S. Department of Agriculture full lifecycle emissions study found that for every unit of fossil energy needed to make biodiesel, 3.2 units of energy are gained. In contrast, for every unit of fossil resources to produce petroleum diesel, only .88 units of energy are gained.

Biodiesel offers similar fuel economy, horsepower and torque to petroleum diesel while providing superior lubricity. It is nontoxic and biodegradable, and significantly reduces emissions of carbon monoxide, particulate matter, unburned hydrocarbons, aromatics and sulfates. On a lifecycle basis, biodiesel reduces carbon dioxide by 78 percent compared to petroleum diesel. More information about biodiesel can be found at www.biodiesel.org.